The latest legal move means that Huawei which was obliged to pay various taxes to the government as from 2014 has received a longer reprieve cancelling all tax obligations as way back as 2009.
In the latest pronouncement government posted:
IT is hereby notified that the Minister of Finance and Economic Development has, in terms of section 78 of the Value Added Tax Act [Chapter 23:12], made the following regulations:—
"These regulations may be cited as the Value Added Tax (Huawei Technologies Co., Ltd.) (Refunds) (Amendment) Regulations, 2020 (No. 1).
"The Value Added Tax (Huawei Technologies Co., Ltd.) (Refunds) Regulations, 2019, published in Statutory Instrument 228 of 2019, are amended in section 1(2) by the deletion of the words "25th August, 2014" and substitution with the words "30th December, 2009."
SI 227/2019 and SI 228/2019 both made by the Minister of Finance and Economic Development both backdated to 25th August 2014, give effect to the Framework Agreement between the Government of Zimbabwe and the Export-Import Bank of China.
They confer taxation privileges for the purposes of Net One Cellular (Private) Limited and Talon (Private) Limited infrastructure modernization projects conducted using funds provided by the Chinese Bank.
"SI 227 exempts Huawei's receipts and accruals under the projects from income tax, non-resident tax on fees and capital gains tax. SI 228 provides for VAT refunds for the benefit of Huawei, Net One and Talon in respect of goods and services purchased for the projects using funds provided by the Bank."
