Tanzania issues Finance Bill, 2016

Tanzania’s Finance Bill 2016 was made publicly available on 13^th June 2016. This follows presentation of the 2016/17 budget by the Finance Ministry on 8^th June 2016. This covers the Finance Bill, 2016 which contains numerous proposed changes in tax and other laws not mentioned in the budget speech. Adjustments made by the Commissioner for non-compliance with the arm’s length principle between associates for transfer pricing objectives will distribute and allocate the expenditure on the basis of a comparability analysis. Introduction of new income tax rate at 35% applicable for petroleum operations and 30% applies for income from mining operations and other income from petroleum operations. It is to be expected that the Finance Act 2016 will be entered into force on 1^st July 2016 after the Finance Bill, 2016 has been passed by the Parliament and is assented by the President.