"New tax on imported digital services Zimbabwe's Finance Minister Prof. Mthuli Ncube announced the measure during his 2026 Budget Speech. The new tax replaces the usual VAT charged on imported digital services. It applies to payments made to foreign digital platforms for services including e-hailing fees, online content subscriptions, digital advertising and satellite-based internet. This means any payment that Zimbabwean users, or local intermediaries, make to offshore digital operators will now attract a mandatory withholding tax at the moment the payment is processed."
"Banks and mobile money operators to deduct the tax The Budget places the responsibility for deducting and remitting this tax on "paying agents". These include local banks, mobile money platforms and financial institutions that facilitate payments for users. By doing so, the government closes long-standing gaps that allowed international digital companies to earn locally without paying taxes in Zimbabwe. The change will likely make services like Bolt and inDrive more expensive."
Zimbabwe's 2026 National Budget introduces a Digital Services Withholding Tax replacing VAT on imported digital services. The levy applies to payments made to foreign digital platforms for e-hailing fees, online content subscriptions, digital advertising and satellite-based internet. Paying agents such as banks, mobile money platforms and financial institutions must deduct and remit the tax when processing payments. The measure closes gaps that previously allowed international digital companies to earn locally without paying taxes. Ride-hailing platforms like Bolt and inDrive may raise fares or alter commissions to cover the cost. Starlink subscriptions, equipment fees and renewals will be subject to the withholding tax and could become slightly more expensive.
Read at The South African
Unable to calculate read time
Collection
[
|
...
]