The Zimbabwean tax regulations concerning income tax, allowable deductions, and exemptions are outlined with clarityMinister of Mines and Mining Development Hon Zhemu Sodahas said According to the Minister, all capital expenditure related to mining operations is deductible, while assessed losses can be carried forward indefinitely Soda said Holders of Special Mining Leases are subject to a 15% corporate income tax rate, with additional profit tax triggered upon reaching specified profitability levels Moreover, exemptions from certain taxes are possible for approved holders of Special Mining Leases
He explained that in terms of customs duty, rebates are granted for goods used in prospecting, petroleum exploration, and specific mine development operations Additionally, VAT deferment is available for mining companies on capital imports for a defined period, subject to set conditions To address infrastructure challenges like power supply and transportation hindering mining operations and investment, the Minister said the Zimbabwean government is implementing various strategies These include the introduction of solar power plants at mining project sites, such as Blanket Mine, which generates a significant portion of its power needs from solar energy
Additionally, plans to invest in coal-bed methane gas projects for power generation are underway The government has also introduced Third-Party Access to the national grid, allowing investors to produce and sell power using existing infrastructure Furthermore, Zhemu said mining companies have the option to directly import power from neighboring countries These initiatives aim to enhance energy reliability and support sustainable mining operations in Zimbabwe
Responding to mining Zimbabwe’s question “What fiscal incentives or tax policies do we have in place to encourage mining investment and ensure a competitive environment for foreign companies seeking to invest in Zimbabwe?” this is what the Minister of Mines and Mining Development said Rebate of duty is granted on goods which are imported by a person who has entered into a contract with the Government for the prospecting and search for mineral deposits Rebate of duty is granted to the grantee of a special grant issued under the Mines and Minerals Act authorizing the exploration or production of petroleum Rebate of duty is granted on goods which the Secretary for Mines certifies as eligible for a rebate of duty in terms of an agreement in the Special Mining Lease
A customs duty suspension is granted to a holder of a mining location number importing specified goods during the project’s life cycle for machinery, construction and erection of facilities for the production and conveyance of minerals Source: Mining Zimbabwe
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Source: Miningzimbabwe
