China, Zimbabwe income tax treaty enters into force

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On 29 September 2016, the income tax treaty between China and Zimbabwe entered into force for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income. This treaty applied from 1 January 2017.

Furthermore, the withholding tax on dividend income shall not exceed 2.5% of the gross amount of the dividends if the beneficial owner is a company which controls directly or indirectly at least 25 per cent of the company paying the dividends and 7.5% of the gross amount of the dividends in all other cases.

For interest and royalty income maximum 7.5% withholding tax applies in which it arises.

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