A quick look at the May 5th 2021 Nampak-Softex-ART US$ 800k announcement reveals some addtional costs involved between the transacting parties, costs one might not immediately consider on hearing about the Softex sale.
Each transfer is subject to a 2% Intermediate Money Transfer Tax (IMTT). Assuming monthly US$ installments of US$ 133,333.3 , the transfers face a flat IMTT fee of US$ 2,000, adding at least US$12,000 to ART's Softex bill.
|Fee||ART (Buyer)||Nampak (Seller)|
|VAT (14.5% of brokerage)||0.13%||0.13%|
|Investor Protection Levy||0.03%||0.03%|
|Capital Gains tax||-||1%|
Table adapted from https://www.zse.co.zw/faqs/
Note to traders and investors
The two sets of (additional) expenses listed above are examples of some additional costs involved in the acquisition and sale of assets in Zimbabwe. One should always carry out detailed research and factor in such issues in their overall decision making processes.
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