The Zimbabwean government has commenced applying a 15% charge on payments made to foreign digital platforms. This includes ride-hailing services such as Bolt and inDrive, as well as streaming and internet providers like Netflix and Starlink. The deduction is applicable when users make payments for these services through local banks or card-based payment systems.
Although the policy went into effect on January 1 under Zimbabwe’s 2026 Finance Act, many users only became aware of it after banks started sending payment alerts indicating the additional deduction on international digital transactions.
Instead of depending on foreign companies to report earnings, the government now collects taxes at the time of payment. When a transaction occurs, banks deduct the tax immediately before the service provider receives the remaining amount.
FILE PHOTO: Zimbabwe President Emmerson Mnangagwa speaks during his inauguration in Harare, Zimbabwe in September 2023. REUTERS/Philimon Bulawayo/File Photo
When you pay for a ride, subscription, or online service, a 15% tax is automatically taken from the full payment. This tax goes to the government, while the rest of the money goes to the platform you used. This is known as a withholding tax that applies to payments made for foreign digital services.
Users do not need to file anything, and digital companies do not collect the tax. Instead, banks and payment processors are responsible for tax collection, which makes every digital payment a point for collecting tax.
This model allows foreign platforms to collect their earnings smoothly, while making sure the government gets revenue from services used in the country.
The government states that digital companies make a lot of money from local users even though they do not have offices or physical operations in Zimbabwe. This includes ride-hailing services, streaming platforms, satellite internet providers, online advertisers, and e-commerce businesses.
When banks handle tax collection, it makes it easier for authorities to manage. This way, they don’t have to track foreign companies. This system also helps reduce tax avoidance. Deductions happen automatically, so they can’t be skipped during payment.
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For users, the impact may not always be clear, but repeated charges can make digital services feel more expensive over time. Businesses and freelancers who rely on ride-hailing or online tools may also face higher costs.
Zimbabwe’s approach illustrates a wider trend across Africa, where governments are modifying tax regulations to adapt to digital economies. Instead of concentrating on the physical location of companies, the focus has shifted to the locations where services are utilized and where payments are made.
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