Zimbabwe has started levying a new tax on payments to increasingly popular multinational digital service providers.
The new 15% digital services withholding tax applies to global digital service providers such as Netflix, Starlink, InDrive, and Bolt, among others.
Payment service providers, such as banks and other payment processors, are responsible for collecting the tax.
Stanbic Bank, for example, informed its depositors via text message on January 3 that the 15% withholding tax on international internet and card payments went into effect on January 1, in accordance with the 2026 Finance Act.
It said the tax was applicable “to the gross value of each transaction and is intended to ensure that offshore providers receive their payment in full while the tax is accounted for locally."
In November, finance minister Mthuli Ncube said: “The rapid expansion of the digital economy has enabled offshore digital platforms to supply services directly to domestic users without establishing a physical presence in the country.
"These include e-hailing platforms, digital streaming services, satellite-based internet services and a range of other online content, advertising and e-commerce platforms.”
The Zimbabwean government claims that multinational firms "generate significant income from domestic consumers and businesses," necessitating taxation of the companies.
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