HARARE – Zimbabwe is set to introduce a 15 percent Digital Services Withholding Tax on payments made to foreign digital platforms, marking a significant shift in how the country taxes the fast-growing digital economy. The new tax will take effect in January 2026 and will apply to digital services that generate income from Zimbabwean users but have historically contributed little or nothing to the local tax base.
Under the proposed framework, the tax will be levied on payments made to a wide range of foreign-based digital service providers. These include streaming platforms such as Netflix, Spotify and YouTube Premium; ride-hailing and mobility services including Bolt, inDrive and Uber; satellite internet providers such as Starlink; as well as digital advertising, e-commerce platforms and various online subscription services.
The government says the measure is intended to promote fairness in the economy by ensuring that multinational digital companies pay their share of taxes in jurisdictions where they earn revenue. Authorities argue that the rapid expansion of digital services has outpaced existing tax laws, allowing global firms to extract value from local markets without a corresponding fiscal contribution.
NDS2: Zimbabwe is putting an end to the era where digital services like Netflix, Spotify, and Starlink generate revenue without contributing locally. Starting January 2026, a 15% Digital Services Withholding Tax will be imposed on payments to foreign digital platforms.
This tax… pic.twitter.com/YJil0qKFc0
— NDS2 (@ZimGvt_NDS1) December 23, 2025
According to officials familiar with the policy, the withholding tax will be collected at the point of payment, with local banks and financial institutions tasked with deducting the 15 percent before remitting funds to foreign service providers. This approach is expected to simplify enforcement and reduce the risk of tax evasion, particularly in cross-border digital transactions.
The move aligns Zimbabwe with a growing number of countries, particularly in Africa, that are seeking to tax the digital economy more effectively amid declining traditional revenue streams. Governments across the continent have argued that digital platforms benefit from local infrastructure, consumer markets and data, and should therefore contribute to national development through taxation.
While the tax is expected to boost government revenue, analysts say it may have mixed implications for consumers and businesses. Some warn that digital service providers could pass on the additional cost to users through higher subscription fees or service charges. Others, however, believe the measure will help level the playing field between foreign digital giants and local companies that are already subject to domestic taxes.
The Ministry of Finance has indicated that further guidelines will be issued ahead of implementation to clarify compliance requirements and address concerns from stakeholders, including consumers, financial institutions and service providers.
As Zimbabwe continues to reform its tax system, the introduction of the Digital Services Withholding Tax underscores the state’s intention to adapt to a digitalised global economy and to capture revenue from sectors that have, until now, largely operated beyond the reach of traditional taxation.
