NATIONAL UNIVERSITY OF SCIENCE AND TECHNOLOGY
FACULTY OF COMMERCE
DEPARTMENT OF ACCOUNTING
BACHELOR OF COMMERCE IN ACCOUNTING HONOURS
INTRODUCTION TO TAXATION CAC 2204
AIMS
The course introduces Candidates to the role of tax in an economy, and goes on to sections
of Income Tax and Finance Acts relevant to the taxation of an individual in receipt of
employment income. The taxation of an individual from the period after date of death to
the liquidation of the estate is included. The application of relevant case law is
demonstrated, together with practical examples on computation of tax.
COURSE OBJECTIVES
1. Students should have a thorough understanding of the legal and administrative
framework including a moderate appreciation of the internal workings of Zimbabwe
Revenue Authority (ZIMRA).
2. Students should have thorough knowledge and ability to compute all taxes applicable to
individuals including Income Tax and Withholding Taxes.
3. Students should have a detailed understanding of the VAT act and be in a position to
compute, complete and distinguish official ZIMRA VAT returns.
4. Students should be able to demonstrate sound understanding of the Capital Gains Act
and perform computations of Capital Gains Tax for individuals.
5. Students will be expected to have a moderate appreciation of the Estates and Trusts and
perform computations of basic estate duty.
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TOPIC
CONTENT
SECTION OBJECTIVES
1.
Overview of Zimbabwe
Tax System
Candidates should have
a thorough
understanding of the
legal and administrative
framework including a
moderate appreciation
of the internal workings
of ZIMRA
2.
General deduction formula
for tax computation, Gross
Income revenue and
capital items
3.
Exempt Income – The
Third Schedule of the
Income Tax Act. Allowance
Deductions and Prohibited
Deductions
4.
Capital Gains Tax Act
5.
Estates and Trusts
(a) Administrative
and
Legal
Framework
(b) Administration of Taxes in
Zimbabwe including submission
time limits, claims, objections
appeals handling disputes
(c) Gross income and source of
income
(d) Capital versus Revenue
(e) Specific Deductions
(f) Exemption
(g) Deeming Provisions
(a) Calculation of Taxable income
(b) Application of rates to determine
tax payable income
(c) Taxation of benefits and special
income (e.g. retrenchments)
(d) Pensions and benefit funds
(e) Application of Tax Credits
(f) Withholding taxes
(g) PAYE and Final Deduction System
(a) VAT registration and
authorization equipment
(b) Taxable supplies, zero rated and
exempt supplies
(c) Input vs Output VAT and VAT
computation
(d) Zero rate supplies
(e) ZIMRA returns
(a) VAT registration and
authorization equipment
(b) Taxable supplies, zero rated and
exempt supplies
(c) Input vs output VAT and VAT
computation
(d) Zero rated supplies
(e) ZIMRA returns
(a) Deceased estates
(b) Insolvent and assigned estates
(c) Trusts
(d) Calculation of Estate Duty
Candidates should have
thorough knowledge
and ability to compute
all taxes applicable to
individuals including
Income Tax and
withholding taxes
Candidates should have
a detailed
understanding of the
VAT act and be in a
position to compute,
complete and
distinguish official
ZIMRA VAT returns
Candidates should be
able to demonstrate
sound understanding of
the Capital Gains Act
and perform
computations of Capital
Gains Tax for
individuals
Candidates will be
expected to have a
moderate appreciation
of the estates and
trusts and perform
computations of basic
estate duty
Recommended Books
1. Candidates’ Guide to taxation in Zimbabwe 2006.
2. ZIMRA website
Other Recommended Texts
3.
4.
5.
6.
7.
8.
9.
Income tax in Zimbabwe-LW Hill Fourth Edition
Budget Statement by Minister of Finance for Year Ending 31/12/2011
Extracts from Finance Act (Chapter 23:04)
Income Tax Act (Chapter 23:06) (please ignore the new proposed act)
The Capital Gains Act (Chapter 23:01)
The Value Added Tax (VAT) Act
Estate Duty Act