Introduction

The Government of Zimbabwe gazetted the amendments to the Finance Act with effect from 01 January 2026. The amendments covered various fiscal measures introduced through recent National Budget Statements.

The key amendments are as below:

Review of the IMTT framework (Section 8)

The IMTT rate on ZiG denominated transactions was reviewed downwards from 2% to 1.5 %, whilst IMTT on foreign currency transactions was maintained at 2% . Transactions of US$500,000 and above to attract a tax of US$10,150 or equivalent

Introduction of New Tax – Digital Services Withholding Tax (Section 49 & 44)

A new Digital Services Withholding Tax was introduced, and Banks are mandated to collect on behalf of ZIMRA, at the point of payment and on real time basis. The Digital Services Withholding Tax is collected on payments made to offshore digital platforms. The Tax rate is currently pegged at 15.5% and is applicable on a number of online transactions on foreign ecommerce platforms on services consumed in Zimbabwe.

We have compiled the following frequently asked questions to provide clarity on the latest updates.

Question: What is Intermediated Money Transfer Tax (IMTT)and what has changed?

IMTT is a tax on electronic transactions. The tax rate on Zimbabwe Gold (ZiG) transactions was reviewed downwards from 2% to 1.5%. However, the 2% IMTT on US Dollar transactions remains unchanged.

 Question: What is the Digital Services Withholding Tax?

The Digital Services Withholding Tax is a 15.5% tax introduced on payments for digital services provided by foreign companies that do not have a physical presence in Zimbabwe.

 Question: When did the Digital Services Withholding Tax come into effect?

The Digital Services Withholding Tax became effective on January 1, 2026. The tax has taken effect on the offshore online payments that are being made, with effect from the effective date.

Question: Is the tax affecting all online payments?

A wide range of services are targeted, including Streaming platforms (e.g., Netflix, Spotify, Amazon Prime), Satellite internet providers (e.g., Starlink), Ride-hailing applications such as In Drive, Online advertising services, Online content subscriptions and other electronically supplied services.

To provide further clarity, the withholding tax does not apply on the following situations:

Not on Physical Goods: The tax does not apply to purchases of physical goods online, which remain subject to standard customs and VAT procedures upon importation.

Not on Domestic Transfers: It is not a tax on person-to-person transfers or local bank/mobile money transfers within Zimbabwe (it is not a replacement for the Intermediated Money Transfer Tax – IMTT).

 Question: Does this tax apply to local businesses?

No, the Digital Services Withholding Tax is specifically for payments made to non-resident digital service providers. Local companies are subject to existing domestic tax regulations.

 Question: When performing a telegraphic transfer, am I charged the 15.5%.

The Digital Services Withholding Tax is only applicable to digital services consumed online and provided by foreign companies that do not have a physical presence in Zimbabwe.

Question: Do we have a minimum and or maximum amount for one to be charged for this tax?

Currently there are no minimum or maximum thresholds for the Digital Services Withholding Tax.

 Question: Are there any exemptions?

Businesses (both local and non-resident) that are already registered for and correctly remitting the standard 15.5% VAT on their digital services in Zimbabwe are exempt from the Digital Services Withholding Tax.

Further Assistance

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