Tanzania: Tax measures in Finance Act, 2022

Finance Act, 2022 is effective 1 July 2022

Finance Act, 2022 is effective 1 July 2022

Parliament has approved the Finance Act, 2022 to impose and alter certain taxes, duties, levies, and fees, and to amend certain laws relating to the collection and management of public revenues.

Finance Act, 2022—effective 1 July 2022—includes the following tax measures.

  • The definition of the word “business” is broadened to include transactions carried out through the internet or digital marketplace—meaning that such transactions will now be subject to taxation in Tanzania.
  • Thin capitalisation rules are more aggressive.
  • The withholding tax rate is reduced to 10% on royalty payments to nonresident providers in the film industry.
  • The Minister of Finance may grant a value added tax (VAT) exemption on goods or services supplied for the implementation of special strategic investments. 
  • Non-residents can now be registered for VAT.
  • Non-governmental organisations (NGOs) must have their supplies and imports of goods and services duly approved for purposes of qualifying for VAT exemption.
  • The scope of capital goods qualifying for VAT deferment is expanded.
  • There are amendments to the VAT exemption schedule.
  • There are changes to the Excise (Management and Tariff) Act.
  • A new Section 37A requires every taxpayer required to file a tax return to do so electronically on or before the due date of filing the respective tax return (with some exceptions).

Read a July 2022 report [PDF 2.74 MB] prepared by the KPMG member firm in Tanzania

 

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