Tanzanian Member FB Attorneys provides a quick executive snapshot of what the Finance Act 2021 amends:
Companies Act
- Share warrants not to be issued
- All share warrants issued to be cancelled within 12 months
Electronic and Postal Communications Act
- Introduces development levy on airtime
- Levy between TZS 5 to 222.70
- Regulations on how to collect and account for levy to be in place
Higher Education Student’s Loan Board Act
- Relief for students
- No retention fee, or any other fee, charges, penalty to be imposed without Ministerial approval
Income Tax Act
- Permanent Establishment definition widened
- Filing of withholding tax returns now monthly
- Withholding tax exempted on interest on Government bonds of 3+ years
National Payment Systems Act
- Money transfer levy introduced
- Between TZS 10 to 10,000
- Regulations to be issued
Non-Citizen’s (Employment Regulation) Act
- Introduces a fine of TZS 500,000 per month, if expatriate return not filed timely twice a year
Public Audit Act
- Specific and wider definition of a public authority or body that can be audited by CAG
- May include corporate bodies under Companies Act
Stamp Duty Act
- Stamp Duty on instruments schedule amended
Tax Administration Act
- Tax Ombudsperson, office not established since 2015, now likely to be in place soon
- Taxpayer primary data server required to be within Tanzania before July 2022
- Notice to obtain information in writing expanded to include taxpayer in addition to any other person not liable to pay taxes
- Tax deposit requirement of 1/3 of tax to object assessments remains intact
- More powers given to CG to reduce interest or penalty
- Introduces 100% penalty of the tax shortfall in controlled transactions if inconsistent with arms length principle
- Impeding administration of a tax law now includes not maintaining a primary data server and not providing official translations of documents
Tax Revenue Appeals Act
- Allows party to an appeal at any stage to mediate and resolve a tax dispute
VAT Act
- Reciprocal arrangement on VAT between Zanzibar and Mainland Tanzania
- Exemptions on VAT for mosquito nets, relief goods, NGOs amongst others
To read a copy of the Finance Act, click here.
