This disclosure relates to improved video coding scheme for zero residual or zero coefficient flags. For example, a method for decoding a current block in a video stream is disclosed. The method may include determining a zero-skip flag of at least one neighboring block of the current block as a reference zero-skip flag; determining a prediction mode for the current block as being either an intra prediction mode or inter prediction mode; deriving at least one context for decoding the zero-skip flag of the current block based on the reference zero-skip flag and the current prediction mode; and decoding the zero-skip flag of the current block according to the at least one context.