TN Cyber Tech Bank Limited, formerly known to many Zimbabweans as Steward Bank, has announced the introduction of a 15.5 percent Digital Services Withholding Tax on Visa card payments, a move that will affect customers paying for offshore digital services from 1 January 2026.
The development follows new tax measures under the Finance Act and places Zimbabwean consumers and businesses that rely on international digital platforms under renewed cost pressure, particularly those using Visa cards for services such as online advertising, cloud computing, software subscriptions and streaming platforms.
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In a message sent to customers, TN Cyber Tech Bank said:
“Dear Customer, from 1 January 2026, a 15.5 percent digital services withholding tax applies to online Visa card payments for offshore digital services.”
According to information released by the bank, the Digital Services Withholding Tax (DSWT) applies to payments made to non-resident service providers for electronic digital services. The tax will be automatically deducted at the point of transaction, meaning customers will not be required to make separate tax submissions.
The bank clarified that the tax applies strictly to offshore digital services, including streaming platforms, cloud computing and online storage services, digital advertising and marketing services, as well as software subscriptions and other foreign digital platforms. Local service providers are exempt, provided they are resident in Zimbabwe.
Importantly, the DSWT does not apply to physical goods. Purchases of tangible products remain subject to normal customs duties and applicable taxes. Accommodation, car hire and ride-hailing services used and consumed outside Zimbabwe are also generally excluded, although separate offshore booking or platform fees may still attract the tax.
From a business and economic perspective, the move presents a mixed picture. On one hand, authorities are clearly seeking to broaden the tax base, capture revenue from the growing digital economy and reduce leakages associated with offshore digital payments. As more commerce shifts online, taxing digital services has become an attractive policy tool for governments under fiscal pressure.
On the other hand, the 15.5 percent Digital Services Withholding Tax on Visa card payments adds another cost layer for businesses already grappling with foreign currency shortages, high operating costs and inflationary pressures. Small businesses, content creators, startups and advertisers who rely heavily on platforms such as Google, Meta and cloud-based software are likely to feel the impact most.
For ordinary consumers, the tax quietly raises the cost of everyday digital life, from music and video streaming subscriptions to app services and online tools. While the deduction may appear small on individual transactions, it compounds over time.
The timing is also significant. As Zimbabwe pushes digitalisation across banking, commerce and public services, higher transaction costs risk slowing adoption, particularly among small players operating on thin margins.
TN Cyber Tech Bank, formerly Steward Bank, emphasised that it is implementing the tax in line with statutory requirements, with all applicable transactions processed on or after 1 January 2026 subject to the DSWT. Where the tax is applied after the initial transaction date, it will be charged retrospectively.
As Zimbabwe’s digital economy continues to expand, the TN Cyber Tech Bank Digital Services Withholding Tax on Visa card payments signals a clear policy direction: the digital space is no longer outside the tax net. The real test will be whether the balance between revenue collection and economic growth is carefully managed.
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