Zimbabwe Activates 15% Digital Tax on Netflix, Starlink & Other Offshore Platforms

Local users of foreign-based digital services, such as subscription streaming platforms, satellite internet providers, and other offshore online platforms, have begun paying a 15% Digital Services Withholding Tax. This new tax regime aims to bring income earned by non-resident digital companies into the country's tax net .

The tax, introduced under the Finance Act, is intended to address revenue losses arising from the rapid growth of the digital economy, where offshore platforms generate significant income from Zimbabwean users without a physical presence in the country. The new levy is being withheld at the point of payment by banks, mobile money operators, and other regulated financial intermediaries before being remitted to the Zimbabwe Revenue Authority (Zimra) . Follow & Share Our WhatsApp Channel

Finance Minister Professor Mthuli Ncube said the new measures were necessary to safeguard Zimbabwe's taxing rights and promote fairness in the tax system. The tax aims to level the playing field between foreign digital companies and local service providers who are already subject to domestic taxes.

The tax may lead to increased costs for consumers and businesses using digital services from offshore platforms. Some providers may absorb the tax, while others may pass it on to users through higher subscription fees or service charges .