The corporate tax rate in 2003 was 30% plus a 3% AIDS levy, down from a flat rate of 36.8%. A 5% levy is imposed on the net profits of banking institutions. New projects or enterprises in designated growth point area are taxed at 15% for five years. Other tax concessions are available for export manufacturers. Dividends paid to a Zimbabwean company are not taxable, but dividends paid to a foreign company are subject to 15% withholding if the company is stock exchange-listed, and 20% otherwise. Listed securities are exempt from capital gains tax, which is otherwise 20%. Withholding rates may be reduced or eliminated in double taxation agreements. Zimbabwe has tax treaties with at least 12 countries, including the United Kingdom, France, Germany, the Netherlands, Sweden, Canada, South Africa, Poland, Malaysia, Bulgaria, and Mauritius.
The primary tax on individuals is an income tax, which is based on a graduated scale of rates: 0%, 20%, 25%, 30%, 35%, and 40%.
A sales tax, imposed at the retail stage, is applied to most goods except for food. In 2002, sales tax rates were 15% and 25%, generally up from rates of 10%, 15% and 20% in 1999. The government plans to introduce a value-added tax (VAT) system. There are excise duties on alcoholic beverages, cigarettes, and tobacco. Other taxes include a betting tax, and stamp, transfer, and estate duties.