Online Reporter
Peter Matika
Zimbabwe is set to enter a new regulatory era for the digital economy, with the Government confirming that global online service providers such as Netflix, Spotify, Starlink, Amazon Prime, and other platforms earning revenue from local users will be required to contribute to the country’s budget, starting January 2026.
The development, part of a broader tax modernisation framework, seeks to close long-standing loopholes that have allowed foreign digital companies to profit from Zimbabwe’s consumers without any local tax obligation.
FINANCE, Economic Development and Investment Promotion Minister, Professor Mthuli Ncube in a budgetary statement, noted that the shift aligns the country with global trends where governments have moved to tax digital services that operate across borders.
He said the era in which international digital platforms generate revenue from Zimbabwe without contributing locally is coming to an end as new measures come into force next year.
The regulations are expected to apply to digital subscription services, cloud computing providers, online entertainment and broadcasting platforms, digital advertising firms, and other tech-based services.
“I propose to introduce a digital services withholding tax in lieu of existing VAT on imported services for payments made to offshore digital platforms, including e-hailing fees, online content charges and satellite-based internet access fees. The tax will be withheld by paying agents that include financial-based institutions,” said Prof Ncube.
