Government has gazetted a Statutory Instrument (SI) to stop double taxation of Zimbabweans living and working in South Africa or South Africans working in Zimbabwe.
The provision was gazetted last Friday.
Part of the SI reads: “Subject to the provisions of article 16, 18 and 19, salaries, wages and other similar remunerations derived by a resident of a contracting State in respect of an employment shall be taxable only in that State unless the employment is exercised in other contracting State.”
Due to the country’s economic misfortunes, thousands of Zimbabweans have migrated to South Africa in search of greener pastures and, all along, had been subjected to double taxation.
The provision also seeks to protect investments by the two countries as investors, who invest in any of the two States will only be taxed in their country of operation.
“However such royalties may also be taxed in the contracting (resident State) in which they arise, and according to the laws of that State,” the SI states.
It does not also cover entertainers and sports personalities employed in another country, as they are taxable in their country of origin.
The proposed law is yet to be tabled before Parliament for approval although it has come into effect on a temporary basis until the lapse of six months.