Treasury reviews electronic tax

The Minister of Finance Mthuli Ncube has proposed to review the tax-tree threshold on electronic transactions from the current $20 to $100 and the maximum tax payable per transaction by corporates from the current $15 000 to $25 000.

Presenting the 2020 National Budget Statement, whose theme is, “Gearing for Higher Productivity, Growth and Job Creation,” last week Ncube said:“I propose to review the tax-free threshold from the current $20 to $100 and the maximum tax payable per transaction by corporates from the current $15 000 to $25 000 for transactions with values exceeding $1 250 000.

“For the avoidance of doubt, all bulk payments through mobile money banking platforms attract intermediated money transfer tax, except where such payments relate to remuneration 245,” Ncube said.

“I, therefore, propose to exempt from Intermediated Money Transfer Tax (IMTT), social transfers by development partners accredited in terms of the Privileges and Immunities Act [Cap 3:03].”

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