A loan benefit arises on the provision of a loan to an employee where the interest rate charged on the loan is less than the LIBOR rate plus 5% and the loan amount exceeds USD100 or ZWL8000. No benefit would arise if the charge is above the LIBOR rate plus 5%.
 
The amount of the benefit is determined by the difference between the interLIBOR rate plus 5% and the interest rate actually charged. The benefit is charged at normal rates.
 
LIBOR rates can be obtained from the ZIMRA website - http://www.zimra.co.zw

The above rates are for loans of 1, 3, 6 and 12 month duration.

 
LIBOR rates can be setup manually, but are updated, together, with other tax parameters, when the annual budget is announced at the end of each tax year.  The LIBOR rate entered into Belina PayrollHR is the total of the 5% ZIMRA loading plus the LIBOR rate taken from the ZIMRA website.

To setup the LIBOR rate:

•Go to the 'Setup', then 'Tax' menu options

•Go to the section 'Loan Benefit' on the right hand side of the screen

•Enter the LIBOR rate plus the 5% ZIMRA loading of the amount

When a loan is given to an employee the deemed tax benefit, if the interest charged on the loan is lower than the ZIMRA loaded LIBOR rate, will be automatically calculated and included on the employee's payslip when a 'Compute' or 'Calculation Routine' is performed.

Vehicle benefit rates can be setup manually, but are updated, together, with other tax parameters, when the annual budget is announced and an updated software version is made available for update at the end of each tax year.

To setup the Vehicle benefit rates

•Go to the 'Setup', then 'Tax' menu options

•Go to the section 'Engine Capacity Limit' on the bottom left-hand-side of the screen

•Press 'Insert' to add a new Engine Capacity, 'Change' to alter an existing Engine Capacity and 'Delete' to remove an existing Engine Capacity.

The vehicle benefit rates applicable from 1 January 2021 are:

When setting up the vehicle/s that an employee has been allocated within the organization enter the actual Engine Capacities of the vehicle/s.  Belina PayrollHR will automatically lookup the relevant benefit amount for that sized Engine Capacity.

When processing, the Vehicle benefit amount can be set to come through automatically with the total Motor Vehicle benefit amount.

The general tax rule is that all remuneration received by an employee is taxable in the same manner as any other earning or allowance. To process the value of a benefit create a Transaction Code using the 'Benefit' category.
 
When creating the benefit Transaction Code enter the value of the benefit if the value of the benefit is a set amount. If the value of the benefit varies from employee to employee then set the Transaction Code to allow 'Manual Edit' and process the varying amounts to each employee affected.
 
Belina PayrollHR includes the benefit on the payslip and includes the amount in the calculation of PAYE but if you add up the payslip you will notice that the amount itself is not used in the determination of net pay.

As mentioned, earlier, all benefits received, as a result of employment, are taxable at the value of the benefit to the employee. To process the value of an other benefit create a Transaction Code using the 'Benefit - Other (Regular)' or Benefit - Other (Irregular) 'categories.