The Transfer Pricing Regulations in Tanzania has finally been released through Government Notice No. 27 of 2014 and which is effective from 7 February 2014.
The Income Tax Act 2004 already had a requirement in section 33 to transact between associates at price. But the concern remains regarding the new regulations that it is too generic and do not provide sufficient guidelines regarding the common areas of disagreements in applying the arm’s length principle in the Tanzanian context. Yet the regulations imposes requirements for specific documentation and also imposes penalties for not to comply.
