Zimbabwe has begun implementing a new Digital Services Withholding Tax (DSWT) on payments made to foreign digital service providers, following signals given by the government in late 2024. The tax officially came into effect on 1 January 2026.
The DSWT introduces a 15% withholding tax on payments to multinational digital platforms offering services to users in Zimbabwe without a physical presence in the country. Affected companies include global providers such as Netflix, Starlink, InDrive, and Bolt.
Under the new framework, banks and payment service providers are responsible for collecting the tax at the point of payment. Financial institutions have already started operationalising the measure. Stanbic Bank Zimbabwe, part of The Standard Bank Group, notified customers on 3 January that the withholding tax now applies to international internet and card-based payments, in line with provisions of the 2026 Finance Act.
According to the bank, the tax is calculated on the gross value of each transaction. While offshore digital service providers continue to receive their full payment, the tax component is accounted for locally.
The government has defended the move by arguing that foreign digital platforms generate revenue from Zimbabwean consumers and businesses without establishing a local presence. As digital services usage continues to grow, the tax is positioned as a way to align taxation with evolving business models and bolster domestic revenues amid ongoing economic pressures.
