‘Bonuses would be taxed like ordinary salaries’ says Chinamasa

via Bulawayo24 NEWS | ‘Bonuses would be taxed like ordinary salaries’ says Chinamasa by Staff Reporter 11 November 2013

SOME companies have said they will pay their employees bonus using the normal taxation rates due to delays in the announcement of the 2014 National Budget while others will wait until the Budget is announced next year.

Finance Minister Patrick Chinamasa said he would delay the announcement of the budget to pave way for wider consultations.

The National Budget sets the tax threshold  on bonuses and many companies  only proceed with bonus payment  after  the  tax-free  threshold is  announced  in   the  budget    statement.

Employers Confederation of Zimbabwe executive director Mr John Mufukare said they had agreed to pay bonuses using the normal taxation rates.

“Bonuses would be taxed like ordinary salaries pending the announcement of the budget,” he said.

“When the budget is announced and we know how they should be taxed, the necessary adjustments will then be made.”

Last year’s tax free threshold for bonuses was US$1 000.

Confederation of Zimbabwe Industries president Mr Charles Msipa said he was still to get a clear position on the matter from his organisation’s members.

“I will have to check on that and see how companies are approaching that matter,” he said.

“But, if there is an expectation that the thresholds will change then obviously there will be delays in the payment of bonuses.

“Some may choose to wait until the budget is announced.”

Mr Msipa said some private sector players normally paid their employees bonuses in January, while others paid them on performance-based basis.

Zimbabwe Teachers Union president Mr Richard Gundani said they had not been officially briefed on the situation.

“As you know, we have our channels of communication with Government and at the moment we have not been briefed on that,” he said.

“We will meet urgently so that we get the official position from Government.”

Zimbabwe Congress of Trade Unions secretary general Mr Japhet Moyo said his organisation was in the dark over the payment of bonuses.

“We do not know how the bonuses would be paid because we have not been informed of anything,” he said.

“We are in the dark and the only information we have is what we are seeing in newspapers.”

Minister Chinamasa told parliamentarians attending a pre-budget workshop recently that he would delay the announcement of the budget as he needed more time to consult stakeholders, but promised he would present it by January 2014 as required by the Constitution.

“We don’t have a budget statement in November,” he said.

“I need more time, possibly in December, but we will meet the constitutional requirement of doing it by January 2014.”

Workers cannot wait to receive their bonus, which is often referred to as the 13th cheque, that is given by companies at the end of each year.

 

COMMENTS

WORDPRESS: 15
  • comment-avatar

    Sadly most companies won’t pay bonuses as they teetering under suicidal zanu mismanagement policies. Bonuses are not a right

    • comment-avatar
      kanyembwele 8 years ago

      nonsense to the man who says bonus not a right, no wonder yo workers are stilling… unonyura chete tigofanana.

  • comment-avatar
    CHEKWA C 8 years ago

    SHUMBA MOTIBVISIRAWO TUMUTERO TWEMANGAMANGA UTWU INCLUDING DUTY ON BLANKETS FRIDGES STOVES NDIPO TINOPONAWO NAPO ISU MAINDIGINEOUS BUSSINESS PEOPLE

  • comment-avatar
    Jrr56 8 years ago

    More important how will they tax the bribes?

  • comment-avatar
    BossMyass 8 years ago

    Taxation for what exactly ? For ultimate destruction ?

  • comment-avatar
    Torai hupfumi 8 years ago

    If chinamasa cannot say out we have the non-taxable bracket for bonus thus $1000,00 for last year that is the starting point. Where is this coming from that bonus will like any other sallary. Bonus is not a salary. We have two words SALARY AND BONUS do they have the same meaning if not then they should be treated differently. Mr Chinamasa should be man enough to say we have the biti benchmark,,,,……

  • comment-avatar
    Shebah 8 years ago

    Bonus taxation formula has always come late and bonuses have always been adjusted afterwards.

  • comment-avatar
    easily fooled 8 years ago

    Yep, he wants to raise revenue for the budget…..the good part is the way he puts it…..bonus tax free threshold is a privlege…..lol. Now the few remaining workers and civil servant can see the good side of something other than ZPF. Its adult literacy school….by 2018 most civil servant will be able to read and right

  • comment-avatar

    The maximum tax on salary must b 45% for those looting th economy like bosses earning above 5k and 28% maximum to other workers.those earning below PDL must not b taxed.

  • comment-avatar

    chinamasa is just but hitting a concrete wall in this ministry. Its easy to rig an election so that you get what you want, but its impossible to rig the economy….chinamasa you haven`t done anything since august, try, try harder my man, be a man, hmm,

  • comment-avatar
    Mafuta 8 years ago

    returns on investments, and luxuries are suitable stuff for taxation, but wages, never. It’s evil to strip a laborer of his wages, even under the guise of taxes. Let Government get allit s money from the piles of diamonds, and no more taxes of any kind on the citizen. Take your filthy diamonds and go away.

  • comment-avatar
    Zimmurungu 8 years ago

    Diamonds have all gone to the Chinese

  • comment-avatar
    Shame 8 years ago

    All governments tax theri citizens’ earnings. Show me one that doesn’t from Uk to , Russia ,USA , China. Currently Israel ranks no.1, followed by Zimbabwe the world over, on governments that heavily tax their citizens. The outcry should be for government to reduce the tax burden on citizens to encourage them to save-savings go towards expenditure-which increases national GDP-hence citizens’ wealth. Basic Economics , but its foolish to ask any government on mother earth to walk away from taxing its citizens. Kuti zvigodii? Moda kujaira zvamahara nguva dzose? Kuchengetwa nehurumende kunge nherera. Tikwanirei.Be full mhani.

  • comment-avatar
    Boss MyAss 8 years ago

    ‘My pain may be the reason for somebody’s laugh.But my laugh must never be the reason for somebody’s pain.’ But why do we pay these taxes? There are many services that should be offered to citizens that could not be managed effectively under any other system.The federal government should use your tax dollars to support Social Security, health care,Our tax system is based on our “ability to pay.” The more money we earn, the more
    taxes we pay. And the opposite is also true. If we earn a small income, we pay less taxes for national defense and social services.No-one seems to realise that the home market suffers from the reduced spending power due to reduced earnings. Their market is partially being sustained by unemployment benefits, which increase the rates of tax required to sustain government.

    This should prove that governments need to change their tax systems to get the lowest production costs, and it is vital that people work to earn an income to live. As production increases, so spending power in the economy increases and tax receipts increase.

  • comment-avatar
    Diego Zhaba 8 years ago

    Zindakupa zindakutorera. That’s the game.