Mthuli Ncube Raids Forex Transactions Again
31 October 2020

By Jane Mlambo| Government has begun taxing foreign currency transfers in what confirms finance minister Professor Mthuli Ncube’s aggressive approach to taxation which piles burden on the already struggling citizens.

According to a CABS Bank notice to its customers, collection of the infamous two percent tax (Intermediated mobile transfer tax (IMTT) has been extended to foreign currency transfers

Below is the CABS notice

Dear Customer
Following the gazetted amendments to the Finance Act (No. 8 of 2020), please note that
the collection of Intermediated Money Transfer Tax (IMTT) has been extended to include
transfers of foreign currency with effect from 1 August 2020.
Kindly note the amendments that have come into effect:

  1. A tax rate of 2% of the transaction value shall apply on foreign currency
    transactions, including Telegraphic Transfers, Mastercard and Visa transactions.
  2. The tax-free thresholds in local and foreign currency transactions have been
    revised to ZWL300 and set at USD5 respectively.
  3. Transaction values equivalent to or exceeding ZWL2.5 million and USD100,000 will
    attract a flat tax rate of ZWL50,000 and USD2,000, respectively.

In line with these new requirements of the Act, please be advised that CABS will be
deducting IMTT, in retrospect from 1 August 2020, from all qualifying foreign currency
transactions on which this tax was not deducted.