If wishes were horses, then Zimbabwe’s tax czar is about to mount an ambitious ride to collect taxes beyond its borders.
In December 2025, the country passed a new tax law that allows it to begin taxing foreign companies operating in the country. For the first time, Zimbabwe will start collecting 15% withholding tax on payments made to foreign digital platforms and consumer products, including Bolt, inDrive, Netflix, Starlink, and Spotify. When customers pay for subscription to these services using local banks or cards, the withholding tax will instantly be deducted before the payment reaches foreign companies. That tax rule kicked off on January 1, 2026.
Taxes, taxes—but from Zimbabwe’s POV: Zimbabwe wants a share of capital going to foreign companies. Since these payments originate from the country, it has a claim to those taxes. Like several other African countries that have launched or expanded new tax acts, Zimbabwe wants to grow its revenue net; as of 2024, Zimbabwe collected ZWG 69.22 billion ($2.67 billion) in taxes.
Between the lines: Zimbabwe is also adopting Kenya’s collection method. Local banks and payment processors will be tasked with collecting taxes from foreign companies operating in the country. The taxes will be removed automatically from users’ accounts once they pay for foreign services. Banks would then remit to the taxman.
What will this change? Previously, Zimbabwe collected value-added tax (VAT) on imported digital services. With the introduction of withholding tax, payments to foreign digital service providers will be held and deducted at the point of payment. As a result, foreign service providers may choose to mark up their prices to reflect the obligatory tax or absorb the costs—it’s a business decision. Importantly, users will not be required to file this tax themselves.
Banks, like Stanbic, have begun notifying customers of the new change. This model of taxation is not unique to Zimbabwe. In September 2025, Kenya released a draft on the Significant Economic Presence (SEP), which sets the taxable profit at 10% of gross turnover, similar to Nigeria’s SEP tax, introduced by the Finance Act, 2019.
By taxing foreign digital service providers without extending the same method to local players, Zimbabwe is not only attempting to widen its tax net; it could also be trying to drive demand to local players who remain subjected to existing domestic tax regimes.