In his 2019 National Budget presentation, Finance Minister Mthuli Ncube bemoaned the fact that foreign operators are taking advantage of technology to provide services to local individuals and thus generate income from Zimbabwe but are not being made to pay tax on it.
Mr Speaker Sir, technological advancements have enabled foreign companies, particularly satellite broadcasters and e-commerce platforms to provide local residents with services from offshore sources.
This income is subject to tax and the activity generating the income is actually paid from a source within Zimbabwe. For the avoidance of doubt and in order to broaden the tax base, I propose to deem income earned by such non-resident service providers to be from a source within the country and liable to tax.
TechZim however argues that this kind of tax will not work in Zimbabwe. For the reasons on why such a tax will not work in Zimbabwe read the article by clicking Here