Taxation of digital financial services (DFS) in Africa

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Zimbabwe

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Total population : 16.32 M. (2022)
Working age (15-64) population : 9.15 M. (2022)
Mobile money accounts1: 21.2 M. (2022)
Transaction values (% GDP) : 18,76% (2022)

1Note: Responses are from participants aged +15


Changes to specific taxes on digital financial services in Zimbabwe

Sources

  1. The Finance Act, 2014. Section 12.
    Zimbabwe includes mobile banking services in the scope of the Intermediated Money Transfer Tax (IMMT), a USD 0.05 flat rate tax.
  2. Finance (Rate and Incidence of the IMTT) Regulations, 2018. Section 2
    Zimbabwe fixes the rate of the IMTT at USD 0.02 on every USD transacted for each transaction, with an exemption for transactions below USD 10, and a USD 10,000 flat rate tax for transactions equal to or more than USD 500,000.
  3. Finance (No. 2) Act, 2019. Section 6.
    Zimbabwe modifies the IMTT as a rate of ZWD 0.02 on every ZWD transacted for each transaction, and applies a ZWD 15,000 for transactions equal to or exceeding ZWD 750,000 and an exemption of ZWD 20 or below.
  4. Finance Act (No. 8), 2020. Section 7 and Section 15
    Zimbabwe changes the exemption threshold (ZWD 300 or USD 5 for foreign transfers) and the ceiling amount of the IMTT.
  5. Finance (No. 2) Act, 2020. Section 9 and Section 22
    Zimbabwe changes the exemption threshold (ZWD 500 or USD 5 for foreign transfers) and the ceiling amount of the IMTT.
  6. Finance Act (No. 7), 2021
    Zimbabwe modifies the ceiling amount of the IMTT.
  7. S.I. 96 of 2022: Finance (Amendment) Regulations, 2022
    Zimbabwe increases the tax rate from USD 0.02 to USD 0.04 on every USD for foreign currency transfers.
  8. Finance Bill (No. 9), 2022. Section 6 and Section 16.
    Zimbabwe changes the exemption threshold (ZWD 2500 or for foreign transfers: USD 5) of the IMTT.
  9. Finance Act No. 13, 2023 Section 4
    Zimbabwe fixes the rate at 2% for transactions in ZWD and 1% for transactions in USD.

Mobile money use and accounts

Evolution in the usage of mobile money
(source: IMF, Financial Access Survey (FAS) (2023) )

Sorry, the graph is not available for this device.

Evolution in mobile money and financial institution accounts
(source: World Bank, Global Findex Database (2021) )

Disparity in Digital Financial Service usage between wealthier and poorer segments of the population
(source: World Bank, Global Findex 2021)

Made or received digital payment (% of each group)

*Note: responses are from participants aged +15

Mobile money accounts (% of each group)

*Note: responses are from participants aged +15

Financial institution accounts (% of each group)

*Note: responses are from participants aged +15

Digital payments and accounts by user group
(source: World Bank, Global Findex 2021)

Adults making or receiving digital payments

Adults with a mobile money account

Adults with a financial institution account

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Last update : 31/01/2024


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