Not all sellers and buyers are aware that they have to attend a Zimra interview to get Capital Gains Tax clearance before a property can be transferred from a seller to a buyer.
Zimra offices are in Kurima House on Nelson Mandela avenue, the parking is relatively easy, it will cost you $1 for one hour, usually enough time to finish your interview. Your Estate Agent will arrange a time for buyer and seller to meet at Zimra to do the interview, probably best to go early in the day to avoid waiting too long.
The interview itself can be quite a stressful experience if your Estate Agent or Lawyer does not accompany you with all the necessary documentation neatly arranged in a file, all documents have to be copied for the Zimra official to keep for their files.
The most important thing that a seller needs to be aware of is that everyone on the title deed has to attend the interview and will need to produce their original ID’s and a photocopy of each ID. The seller will also need to produce two utility bills from two different service providers.
In terms of the finance act of 2009, the Capital Gains Tax levied on the gain arising from the disposal of immovable property, land or buildings will be calculated at the rate of 20% of the gain.
Any property that was acquired prior to February 2009 will pay Capital Gains tax calculated at the rate of 5% of the selling price.
No Capital Gains Tax is chargeable where one elects for a “roll-over”, by spending all the proceeds from the sale of the old principal private residence on the purchase or construction of a new principal primary residence. This also applies where a residential stand which qualifies as a principal primary residence is disposed of and a new residential stand is acquired.
Where a principle primary residence is sold by a person aged 55 or above, not tax is chargeable.
For more details on any of the above information, contact Marje Kennan at Kennan Properties cell. 0772 269 496 OR for a detailed list of exactly what is needed for the Zimra interview and to understand more about CGT, visit the Zimra website www.zimra.co.zw