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["RETRENCHMENT PACKAGE CALCULATION"]
[]
["Disclaimer - Please ensure ZIMRA verifies these calculations before processing in the payroll and paying out the package. Belina will not be liable for any incorrect tax processed as a result of using this calculator."]
["   Name Of Company","Test"]
["BP Number"]
["Tax Year"]
["Employee Number",""]
["TIN"]
["Employee’s Department",""]
["Tax Type",""]
["Approved/Unapproved",""]
["Name Of Employee",""]
["Address Of Employee",""]
[]
[]
["Package",null,25000]
["Motor Vehicle (amount/value)",null,0]
["Other Income, Benefit(s), Gratuity"]
["Total Package",null,25000]
["3rd of the Package",null,8333.3333333333339]
["(Exempt  Portion used for calculation)",null,5033.33]
["Sub Total",null,19966.669999999998]
["Year To Date Income (Salaries, Wages) upon Termination",null,0]
["Current earnings including C.I.L.L ",null,0]
["(Less Year To Date Allowable  Deductions),NSSA,NEC,Trade Union",null,0]
["Taxable Income",null,19966.669999999998]
[]
["Rate on Taxable Income",0.3]
["Deduct",1020,4970.0009999999993]
["Aids Levy %",0.03,149.10002999999998,null,null,null,null,null,null,"  "]
["PAYE incl. Aids Levy",null,5119.1010299999989]
["(Less prior PAYE and Aids levy Deducted To Date)",null,0]
["Tax On Package","USD$",5119.1000000000004]
[]
["            Total Tax Credits",null,0]
["       Total Tax Due",null,{"$f":"MAX(0,C33-C35)","v":5119.1000000000004}]
[]
["Belina Time Systems (Private) Limited ©  2023"]
[]
[]
[]
[]
[]
["NB: Effective Date: 01-08-2023"]

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[null,"Taxation of retrenchment packages"]
[]
[null,"Disclaimer "]
[null,"Please ensure ZIMRA verifies the calculations that will be produced from ths calculator before processing in the payroll and paying out the package. Belina is not liable for any incorrect tax processed as a result of using this calculator."]
[null,"Did you know that retrenchment packages form part of gross income and are subject to income tax like all other income?"]
[]
[null,"Definitions"]
[]
[null,"A retrenchment package is a pay off by an employer to an employee who has been laid off due to restructuring that has rendered the employee’s position redundant. It constitutes pecuniary payment or the offer of material benefits. A retrenchment package may include any or all of the following,  severance pay (cash), gratuity (cash) and other material benefits like motor vehicles, vehicles, computers, furniture and immovable property (houses and buildings)."]
[]
[null,"Legal Provision"]
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[null,"Section 8 (1) of the Income Tax Act (Chapter 23:06) defines what constitutes “gross income” and retrenchment packages are brought into taxation under this section.  Section 73 of the same Act provides for the payment of employees tax (including tax on retrenchment packages) withheld by employers."]
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[null,"Exemptions"]
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[null,"Section 14 of the Income Tax At (Chapter 23:06) as read with paragraph 4 (p) of the Third Schedule to the same Act exempts the greater of US$3,200 or one third of up to US$15,100 of the amount of any severance pay, gratuity or similar benefit received on cessation of employment due to retrenchment, under a scheme approved by the Minister responsible for labour. The amount determined as legislated will thus not be liable to tax or in other words, will be excluded from the taxable income."]
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[null,"Application of a Tax Deduction Directive"]
[]
[null,"On termination of employment an employer determines the respective retrenchment package and applies to ZIMRA for a tax deduction directive in form NP4. The following information, in respect of the employee receiving the retrenchment package, should be carefully and accurately filled by the employer onto the application form:"]
[]
[null,"First name and surname"]
[null,"National identity number (which acts as the taxpayer identification number, TIN)"]
[null,"Tax year (the period in which the retrenchment accrued or is paid)"]
[null,"Nature of benefit"]
[null,"Amount of benefit (based on the open market value of the benefit or property offered as retrenchment)"]
[null,"Salary and allowance per annum"]
[]
[]
[]
[null,"The application form should be signed by both the employer or his representative and the employee. Where the employee is unable to sign the application form, the employer should indicate this to ZIMRA and may sign on behalf of the employee. The completed application form should then be submitted to ZIMRA for processing."]
[]
[null,"On receipt of the application from the employer, ZIMRA will check the correctness and accuracy of the information on the form and its accompanying attachments before issuing the directive."]
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[]
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[null,"Computation Of Tax On Retrenchment Package"]
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[null,"Below is an example of the computation in respect of taxation of retrenchment packages:"]
[]
[null,"Total package                                                                       xxxxxx"]
[]
[null,"Less relocation allowance                                                    (xxxx)"]
[]
[null,"Less exempt portion                                                             (xxxx)"]
[]
[null,"Add annual salary at date of withdrawal                            xxxxxx"]
[]
[null,"Taxable income                                                                    xxxxxx"]
[]
[]
[]
[null,"Tax thereon at normal rates                                                  xxxxxx"]
[]
[null,"Less tax on salary at normal rates                                        (xxxx)"]
[]
[null,"Add 3% Aids levy                                                               xxxxxx"]
[]
[null,"Tax applicable on retrenchment package                             xxxxxx"]
[]
[null,"Payment due dates"]
[]
[null,"Once a directive has been issued, the employer should remit the employees tax within the period stipulated in the 13th Schedule of the Income Tax Act.  Failure to withhold and late remittances/payments of employees’ tax constitutes an offence and attracts penalties and interest."]
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[null,"Our valued clients are hereby informed that no fee is charged for the issuance of tax directives and are encouraged to report to the police any incidents of people purporting to be ZIMRA officers and charging any fees and  involved in such corrupt practices."]
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[null,"source:   www.zimra.co.zw"]