Zimbabwe has introduced a new tax on payments made to increasingly popular international digital service providers. This 15% withholding tax on digital services will affect global companies like Netflix, Starlink, InDrive, and Bolt, among others.
Payment service providers, including banks and other payment processors, are tasked with collecting this tax. For instance, Stanbic Bank notified its clients via SMS on January 3 that the 15% withholding tax on international internet and card transactions commenced on January 1, in line with the 2026 Finance Act.
The bank clarified that the tax applies to the total transaction amount, ensuring that offshore providers receive full payment while local tax obligations are fulfilled.
In November, Finance Minister Mthuli Ncube explained that the rapid growth of the digital economy has allowed foreign digital platforms to provide services directly to local users without establishing any physical presence in Zimbabwe. This includes various services such as e-hailing apps, digital streaming services, satellite internet, and a multitude of other online content, advertising, and e-commerce platforms.
The Zimbabwean government asserts that multinational companies generate substantial income from local consumers and businesses, and thus, the need for taxation on these digital services is warranted.
