A Zimbabwean company pays income tax at 25% of its taxable income. On top of that comes the AIDS levy, which is 3% of the income tax, not 3% of the profit. Put together, the company pays 25.75% of its taxable income.
A worked example
Say a company's taxable income for 2026 is US$100,000.
- Income tax at 25%: US$25,000.00.
- AIDS levy at 3% of US$25,000: US$750.00.
- Total: US$25,750.00, which is 25.75% of the profit.
The same rates apply to a company that reports in ZiG: on taxable income of ZWG 2,800,000 the tax is ZWG 700,000 and the levy ZWG 21,000. Our company tax calculator works in either currency and shows each step.
Where the 25% comes from
The rate is set by the Finance Act. It was 24% until the Finance Act 13 of 2023 raised it to 25% from the 2024 year of assessment, and the Finance Act 7 of 2025 left it at 25% for 2026. Trusts pay the same rate.
Taxable income isn't the profit in your accounts
Taxable income is accounting profit adjusted for tax: some expenses aren't deductible, capital allowances replace depreciation, and some income is exempt. The calculator starts from taxable income, so make those adjustments first, or ask your accountant for the figure. A company that makes a loss pays no income tax for the year, and the loss is carried forward to set against future profits.
Special rates
Some companies pay less. ZIMRA lists lower rates for, among others, manufacturing companies that export a large share of their output, licensed investors and businesses in special economic zones, and different rules for mining companies. The calculator uses the standard 25%; if one of the special rates might apply to you, check ZIMRA's corporate tax rates page and the conditions that go with it.
One rate on every dollar
Unlike PAYE for individuals, which rises through bands, company tax is a flat rate. Every extra dollar of taxable income costs 25.75 cents in tax and levy, whatever the company's size. Another US$10,000 of taxable income adds US$2,575.00, so the company keeps US$7,425.00 of it. The calculator shows this, along with the profit after tax.
Paying it
Company tax isn't paid in one lump at the end of the year. Companies pay it in four quarterly payments during the year, based on an estimate of the year's tax, and then file a return. Our guide to quarterly payment dates explains how they work.
Sources
- ZIMRA: Corporate tax rates
- ZIMRA public notice 9 of 2024: Finance Act 13 of 2023, major highlights
- Finance Act 7 of 2025 (Veritas copy)
This is general information, not tax, legal or financial advice.