Mnangagwa gazettes Zimbabwe-Switzerland taxation agreement

Published: 3 hours ago

President Emmerson Mnangagwa has officially gazetted the agreement between Zimbabwe and Switzerland aimed at avoiding double taxation and preventing tax evasion on income and capital gains.

The pact, signed on March 19, 2025, seeks to ensure that individuals and companies are not taxed twice in both countries on the same income, while promoting investment, transparency, and economic cooperation.

The proclamation, issued under Section 91 of the Income Tax Act [Chapter 23:06], confirms that the President is empowered to enter into such agreements and publish them in the Government Gazette.

According to the proclamation, the Double Taxation Agreement (DTA) will apply to residents of both countries and includes provisions aligned with OECD standards on international tax fairness.

Under Article 15, employment income will be taxed in the country where the work is performed, while income from immovable property, including agriculture and forestry, will be taxed in the country where the property is located.

Other clauses cover the taxation of dividends, capital gains, directors' fees, pensions, royalties, and technical service fees, ensuring that such earnings are not subjected to double taxation.

Diplomatic and consular staff will continue to enjoy existing tax privileges under international law.

The agreement now awaits parliamentary ratification in both Zimbabwe and Switzerland before coming into force - marking a key step in strengthening bilateral relations and fostering investor confidence between the two nations.
- The Herald

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