ZIMBABWE has imposed a 15% digital services withholding tax on global tech giants, including Google, YouTube, and satellite internet provider Starlink.
The new tax, effective January 1, 2026, will apply to payments made from Zimbabwe to offshore digital platforms.
Banks, mobile money operators, and other intermediaries will collect the tax, according to proposals made by Finance Minister Mthuli Ncube in the 2026 national budget.
The budget was presented in Parliament last Thursday.
Similar taxes in other countries have led companies like Google to pass costs onto consumers, suspend certain features, or adjust service availability.
“The rapid expansion of the digital economy has enabled offshore digital platforms to supply services directly to domestic users without establishing a physical presence in the country," Ncube said.
"These include e-hailing platforms, digital streaming services, satellite based internet services, and a range of other online content, advertising, and e-commerce platforms.
“These entities are generating significant income from domestic consumers and businesses.
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“However, the current tax framework does not adequately capture income accruing to nonresident digital service providers or VAT payable on such services, resulting in substantial revenue leakages.
“Payments for subscriptions, commissions, e-hailing service fees, and internet access charges are mostly remitted offshore without being subjected to VAT.
“This has created base erosion risks and unfair competitive advantages over domestic service providers that are fully taxed in the country.
“I, therefore, propose to introduce a digital services withholding tax at a rate of 15%, in lieu of VAT on imported services, for payments made to offshore digital platforms, including e-hailing fees, online content charges, and satellite-based internet access fees.”
Analysts warned that the tax could hurt Zimbabweans who rely on digital platforms, limiting advertising reach, monetisation, and affordability in an economy already strained by low disposable incomes.
The top 50 Zimbabwean YouTubers earn an estimated US$23 469 to US$375 300 per month, according to global tracker Social Blade. The new tax may reduce their earnings.
For ride-hailing app InDrive, the levy is likely to translate into higher transport fares, according to analysts.
Ncube also removed the qualifying threshold for the 5% electronic commerce operators’ tax, meaning all foreign e-commerce platforms serving Zimbabwe must now comply, regardless of revenue size.
Tech analyst Jacob Mutisi said the move amounted to double taxation.
“It is bad because it is double taxation. You are taxing a company that is going to be taxed in America as well. It is not good for business,” Mutisi told Standardbusiness.
“Depending on how much taxation there is in the United States, assuming it’s 15%, that means (it becomes) 30% what the American company will pay in terms of taxation.
“It is not possible to tax an individual, but if you are going to be doing it from the bank, then it’s possible to get the taxes.”
However, he acknowledged that the measure aligned with global trends.
“It will make the market more complex and less attractive. This happened in India, Kenya, Nigeria, and Uganda after digital taxes.
“Key risks are double taxation and compliance problems. Platforms like Google already pay taxes in Ireland/USA.
“Introducing a 15% withholding tax may violate double taxation agreements, can lead to conflicts where digital companies demand gross up payments, and creates headaches for Zimbabwean accountants and SMEs.”
He added that this was why “smart countries negotiate such taxes.”
The move comes as global tensions rise over digital taxation.
