Special Economic Zone (SEZ) Licence

What is a Special Economic Zone?

Geographically demarcated and secured area within which multi-sectoral business investments are conducted under a liberal legislative framework enjoying certain fiscal and non-fiscal incentives. The Zimbabwe Investment and Development Agency (“ZIDA”) is mandated to establish and regulate Special Economic Zones (“SEZ”) in Zimbabwe.

Types of SEZ Permits/Licences

Qualifying Investors

Any person who owns land may apply for the designation of a specified area of land as an SEZ.

Application Fees

  • Non-refundable application fee of US$1,000.
  • Upon approval, a once-off payment of US$50,000 is required.
  • The designation has no tenure and is not subject to annual
    fees.

 

 

Qualifying Investors

Any person who wishes to develop an area as a special economic zone area in which licensed investors will establish and conduct their operations

Application Fees

  • Application fee of US$1,000.
  • Upon approval US$20,000 is required before issuance of Developer’s Permit.
  • Annual fee of USD$5,000
  • Permit is valid for 10 years.

 

 

Qualifying Investors

Any person who wishes to administer and manage a special economic zone for or on behalf of the SEZ Developer.

Application Fees

  •  Non-refundable application fee of US$1,000.
  • Upon approval US$20,000 is required before issuance of Operator’s Permit.
  • Annual fee of USD$5,000
  • Licence is valid for 10 years.

Qualifying Investors

Any person wishing to invest in a special economic zone.

Application Fees

  • Non-refundable application fee of US$1,000.
  • Upon approval US$10,000 is required before issuance of Investor’s Licence.
  • Annual fee of USD$2,500
  •  Licence is valid for 10 years

Applying for a first-time SEZ licence

Requirements For

  • Company Registration Documents
  • Project Concept Note containing a market demand analysis, SWOT analysis, clients, potential markets and competitors, future prospects, and attractiveness to potential investors to locate in the SEZ.
  • Proof of land title
  • Schematic Master Plan
  • Prospectus for an initial environmental and social impact assessment approved by the Environmental Management
  • Non-refundable application fee of US$3,000 (Designation Certificate, Developer’s Permit and Operator’s Permit) as shown in the Table
  • Company Registration Documents
  • Written statement on the proposed activities to be carried out
  • Lease for property located in an SEZ issued by the zone Developer/Operator
  • Proof of availability of an initial investment sum equivalent to fifty thousand United States Dollars (US$50 000,00) in convertible foreign currency
  • Non-refundable application of US$1,000
  1. SEZ Permit Form
  2. Amendment of SEZ Permit Form
  3. Resizing of a SEZ Form

Tax bracket

Prevailing rate outside

special economic zones

Gazetted special economic

zone incentives

Empowering law

1

Corporate tax

Corporate tax – 24.72%

Zero-rated Corporate

Income Tax for the first 5years of operation.

Income Tax Act read together with Finance Act

2

Special Initial AllowanceSpecial Initial Allowance

a)  SMEs – 50% first year, 25% second year, 25% third year

b)  Others – Buildings

25% for 4 years

Special Initial allowance of 50% of cost from year one and 25% in the subsequent two years.

Income Tax Act read together with Finance Act

3

Employees tax for expatriates and locals

Employees tax for expatriates and locals (refer to tax tables, the rates are the same for

both cases)

Specialized expatriate staff will be taxed at a flat rate of 15%.

Income Tax Act read together with Finance Act

4

Non-residents withholding tax on fees for services

Non-residents withholding tax on fees for services – 15%

unless reduced by a 

double taxation

agreement

Exemption from Non- residents withholding tax on fees on services that are not

locally available

Income Tax Act read together with Finance Act

5

Non-residents withholding tax on royalties

Non-residents withholding tax on royalties – 15% unless reduced by a double

taxation agreement

Exemption from Non- residents withholding tax on Royalties.

Income Tax Act read together with Finance Act

6

Non-residents withholding tax on dividends

Non-residents withholding tax on dividends – 15% unlisted shares and

10% for listed shares

Exemption from Non- residents withholding tax on Dividends

Income Tax Act read together with Finance Act

7

Customs duty on Capital equipment and raw materials

Generally, rates of duty on capital equipment ranges from 0% to 15%. However, for one to be specific, there is need to know the type of capital equipment being imported, classify the equipment in the Tariff Handbook which will then give you the respective rate of duty.

Import VAT is at 15%

100% customs duty rebate on all imported raw materials, equipment and machinery.

Statutory Instrument 59 of 2017

8

Import and export

permit requirements

Required in terms of

the Control of Goods Act

Exempt from the

requirement to obtain import and export permits

Section 6 of Schedule 3 of the ZIDA Act

9

One stop investment services centre

Investor facilitation and after care services across all Government entities and

agencies

Section 5 of ZIDA Act

SEZ

Location

Size

Responsible

Authority

Scope

Beitbridge SEZ

Beitbridge

248 hectares

Municipality     of Beitbridge                         ZIDA

Development of a Logistics Hub

Belmont-Donnington-

Kelvin-Westondale

Bulawayo

Over 3,000

hectares

Bulawayo      City

Council

Manufacturing and Industrial Hub

Fernhill SEZ

Mutare

89 hectares

Mutare City Council

Logistics hub, Mineral beneficiation and agro-processing

Masuwe SEZ

Victoria Falls

1,200 hectares

Victoria       Falls-

Hwange        Joint Committee


Mosi Oa   Tunya

Development Company

Development of a Tourism and Financial Hub

Sunway City

Harare

1,216 hectares

Sunway City (Pvt) Limited

Development of High Tech Park, Light manufacturing and Medical Park

Umvumila SEZ

Bulawayo

179 hectares

Bulawayo         City Council

Development of an Industrial Part