Zimbabwe’s operators face first deadline after tax reforms
Zimbabwe’s revamped gambling tax system achieved a noteworthy milestone this week as the new system, which came into effect on 1 January 2026, underwent its first major test as gambling operators had to submit their initial tax returns to the Zimbabwe Revenue Authority, declaring the winnings of punters and the gross takings of casinos, sportsbooks, and lottery providers. This requirement was the first major test of the revamped gambling tax system, which also reflects the significant increase in taxation applicable to gambling as the withholding tax on the winnings of punters increases from 10% to 25%. The gross takings tax on the business of casinos, sportsbooks, and lottery providers increases from 3% to 20%.
Deadline pressure and late filing options
The initial filing deadline was 5 January 2026, with payments being due five days after that. The Zimbabwe Revenue Authority has announced that operators who fail to meet the deadline should submit their outstanding returns as soon as possible. Operators should settle their overdue amounts without delay to comply with the law and avoid enforcement action. The law applies to all sectors in the gambling industry, and the withholding tax becomes payable at the time of payment to the punters, with the operators being required to pay over the withheld amounts to the Zimbabwe Revenue Authority.
Withholding and monthly reporting obligations
Under the Finance Act, operators must withhold 25% of punters’ gross winnings. Operators apply the deduction immediately when they pay out winnings. They then transfer the withheld tax to ZIMRA. The new framework requires operators to file monthly returns. Operators must submit returns for winnings by the fifth day of the following month. They must complete the corresponding payments by the tenth day.
ZIMRA clarified the reporting requirements in a public notice. ZIMRA Public Notice 02 of 2026 states: “Returns and Payments Due January 2026 shows that Punters Withholding Tax and Bookmakers Tax returns for the period ending December 31, 2025, were due by January 5, 2026, with payments due by January 10, 2026.” The notice also outlines deadlines for other tax categories.
Compliance warnings and payment methods
ZIMRA emphasised taxpayer responsibility under the new regime. The authority warned against delayed compliance. It encouraged operators to regularise their tax positions quickly. The notice added: “Taxpayers who have not yet submitted their outstanding returns are encouraged to do so, whilst those who are behind on their tax payments must pay the overdue amounts without further delay to prevent legal action.”
Payment options remain straightforward. Taxpayers can make payments into the ZIMRA Bank Account. Cash deposits and bank transfers are permitted through linked bank accounts.
The 25% withholding tax starts on 1 January 2026, and this reduces the initial reporting cycle. After that, the operators will file their monthly returns on the regular cycle. The due date for filing the returns for payments made in January 2026 is 5 February. The 20% Bookmakers’ Tax has the same filing structure.
Revenue expectations and wider tax net
Finance Minister Mthuli Ncube said that the changes are revenue-driven, targeting the growing gambling industry. He explained that online and retail betting forms have been the major contributors to the growth of the industry. Estimates indicated that between 2023 and 2024, gambling revenue increased by between 8% and 10%.
The government aims to capture a larger share of that expansion. ZIMRA’s notice also highlighted other taxes with identical deadlines. These include Pay As You Earn (PAYE), Mining Royalties and Presumptive Tax. Fast Foods Tax, Value Chain Withholding Tax and Plastic Carrier Bag Tax were also listed.
In addition to gambling reforms, Zimbabwe introduced a digital services tax. A 15% withholding tax took effect on 1 January 2026. It applies to payments made to offshore digital platforms administered by ZIMRA.
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