On 28 June 2022, the National Assembly approved Finance Bill 2022 which contains the measures of the Budget for 2022/23. The Finance Act 2022 was published on 30 June 2022 in the Tanzanian Official Gazette. This Act shall come into operation on 1 July 2021. The Finance Act contains the following income tax measures:
- Introduction of Digital Service Tax at the rate of 2% on the turnover of the non-resident service providers;
- The definition of the terms ‘business’, ‘alternative financing arrangement’, ‘digital marketplace’, and ‘electronic service’ are amended;
- The term ‘equity’ is now limited to paid-up share capital only in respect to thin capitalization rules
- Reduce Withholding Tax on royalties paid in the film industry from 15% to 10%;
- Introduce final Withholding Tax at a rate of 2% of payments made to Small Scale Miners;
- Exempt Capital Gain Tax (CGT) on equity shares freely surrendered to the Government through the Treasury Registrar.
