Zimra moves to target international corporates over 15% minimum tax in Zimbabwe

THE Zimbabwe Revenue Authority (Zimra) says the introduction of the Domestic Minimum Top-Up Tax (DMTT) is critical to safeguarding the country’s tax base and ensuring large multinational companies pay a minimum level of tax on profits generated from their Zimbabwean operations.

The DMTT, which went into effect this year, effectively creates a 15% minimum tax floor for qualifying multinational groups, requiring them to pay additional tax in Zimbabwe where their effective tax rate on locally generated income falls below 15%.

The top-up applies where the lower effective rate results from tax incentives, exemptions or other provisions that reduce the amount of tax payable.

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