NewZimbabwe.com has invited Mr. Vengai Madzima, the Senior Partner at Madzima Chidyausiku Museta Legal Practitioners (MCM Legal) to discuss legal issues that affect Zimbabweans living in the diaspora.
Reporter: Welcome back Mr. Madzima, this week we want to discuss laws affecting returning residents to Zimbabwe. Who qualifies as a returning resident?
VM: Thank you. I think your question relates to qualification for certain tax rebates as a returning resident in terms of the applicable tax laws. According to our tax laws, a returning resident is an immigrant who is a resident of Zimbabwe and returns to Zimbabwe having resided outside Zimbabwe for a continuous period of not less than 2 years.
This may be because the 'returning resident' has completed schooling, work contract or any other reason and intends to come back and reside in Zimbabwe permanently.
Reporter: Are there any tax benefits or exemptions available to returning residents and how does an individual qualify for those benefits?
VM: Before delving into the benefits, I will start with what is required to qualify for the benefits. The returning resident must have been a resident of Zimbabwe before relocating to the country they are now returning from. As stated before, the returning resident should not have been a resident of Zimbabwe for any period covered by the last 2 years before returning to Zimbabwe. The returning resident must be returning to Zimbabwe with the intention of staying or residing in Zimbabwe permanently. The returning resident may be asked to show proof that they have severed ties with the country they were residing in before deciding to come back to Zimbabwe.
Once it is established by ZIMRA that they qualify as a 'returning resident,' the returning resident may be granted an exemption on import duties for personal belongings and household goods. They may also get tax relief on income earned abroad, for example, pensions and annuities, provided certain conditions are met. In addition, they may be granted special allowances or deductions for expenses relating to their relocation to Zimbabwe.
Reporter: What are the customs regulations when I want to bring in my car as a returning resident?
VM: A returning resident may bring in a car duty-free within 3 months of having been classified as a returning resident. The vehicle in question must have been owned and fully paid for by the returning resident for at least 6 months before bringing the car into Zimbabwe and when the car is brought into Zimbabwe it will be for personal use. If the vehicle is allowed to enter duty-free, the vehicle cannot be sold or disposed of within 2 years of being granted duty-free status. Long and short, the returning resident is to use the vehicle for personal use for a minimum of 2 years.
Reporter: Should a returning resident be travelling with someone who requires citizenship or residency what are the processes?
VM: There are a variety of pathways to citizenship or residency. If we start with citizenship, one may acquire citizenship by birth or descent where one or both parents are Zimbabwean citizens. Citizenship may also be acquired by marriage upon fulfilling certain residency and legal requirements. One can also become a citizen by naturalization. In terms of residency, it may take a variety of forms which include investment, work, student or humanitarian residency.
So, an application will have to be made in terms of which citizenship or residency pathway the applicant requires to base the application on. What is critical is that the documents relating to the application are all available, the standard being birth certificates, identity documentation, proof of previous residency et cetera.
Reporter: How does a returning resident ensure that his or her property rights are protected?
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VM: That is a broad but pertinent question. It matters what type of property it is, for purposes of my response, I will speak of real estate. The first thing to do is to ensure that the documentation of the property is up to date and verified. If, for instance, the title is in cession form, then acquiring title deeds which offer the highest protection will be necessary. If the title is held through cession and title deeds are not ready, then verifying with the relevant cedent on the status of ownership and pathway to title deeds will be in the interest of the returning resident. Further, ensuring that all local outstanding bills are paid up and up to date goes a long way in protecting property rights.
Reporter: Thank you, Mr. Madzima we have to end here, because of our time.
VM: Thank you.
These discussions are of a general nature and those seeking specific legal advice should contact their lawyer.
