Tanzania: Tax proposals in budget 2022-2023 include tax on digital services provided by non-residents

Withholding tax at a rate of 2% on revenue from digital services provided by non-resident service providers

Include tax on digital services provided by non-residents

Tax measures in the budget 2022-2023 include the following proposals:

  • A withholding tax at a rate of 2% on revenue from digital services provided by non-resident service providers
  • A tax rate of 3.5% for taxpayers with turnover between TZS 11 million and TZS 100 million
  • Changes to the income tax law regarding exemptions granted to “strategic investors”
  • Repeal of the exemption to withhold tax on individuals on rent paid for residential houses, apartments, and commercial premises
  • A reduced withholding tax rate of 10% (from 15%) on services procured from a non-resident in relation to the film industry

Read a June 2022 report [PDF 3.36 MB] prepared by the KPMG member firm in Tanzania 

 

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