Government Clarifies Digital Services Withholding Tax
Written by Skyz Metro FM on January 8, 2026
8 January 2026
SFM News
The government has moved to clear confusion surrounding the newly introduced 15 percent Digital Services Withholding Tax, saying the levy applies strictly to imported digital services and not to imported goods.
The Ministry of Finance says Clause 44 of the Finance Act of 2025 was wrongly interpreted, leading to the belief that the tax covered all payments for goods and services sourced outside Zimbabwe. Authorities have since confirmed that imported goods remain subject only to Value Added Tax at the point of entry.
Treasury has directed the Zimbabwe Revenue Authority to immediately align implementation with the original policy intent and to inform banks and other withholding agents to avoid cases of double taxation.
The withholding tax, which took effect on the 1st of January 2026, targets payments made to offshore digital platforms, including e-hailing services, online content providers, and satellite internet services.
Government says the clarification is meant to ensure smooth compliance and protect businesses from unintended charges.
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Skyz Metro FM