As the broke Zimbabwean government seeks to seize every cent it can lay its hands on, the Zimbabwe Revenue Authority (Zimra) will tax specific classes of donations to beef up the fiscus.

The tax collector said even though donations are not incurred for the purposes of trade or in the production of income, there are circumstances under which such are taxed. According to Zimra, donations to the National Scholarship Fund, the National Bursary Fund — a charitable trust administered by the minister
responsible for Social Welfare or the minister responsible for Health — are liable to tax and there is no limit to the amount.

The principle also applies to funds to any one of the following, provided it is approved by the minister responsible for Health: i. Purchase of medical equipment for a hospital
operated by the State, local authority or religious organisation.
ii. Construction, maintenance or extension of a hospital operated by the State, local authority or religious organisation.
iii. Procurement of drugs to be used by a hospital operated by the State, local authority or religious organisation. In such cases, the maximum allowed as a deduction is US$100 000.
Zimra also said a research institution approved by the minister responsible for Higher and Tertiary Education is also taxable, with the maximum
amount allowed as a deduction pegged at US $100 000.Daily News