The Government of Tanzania has published the Finance Bill 2022 (“The Finance Bill”) dated 15 June 2022 to implement various tax and regulatory changes announced by the Minister of Finance and Planning during his 2022/2023 Budget Speech on 14 June 2022.

The Finance Bill was tabled for discussion in Parliament and is intended to come into force from 1 July 2022. The bill has proposed to impose and alter certain taxes, duties, levies, fees and to amend certain written laws relating to collection and management of public revenues. 

This newsletter supplements the analysis and insight in our Budget brief. Our analysis is based on our interpretation of the Finance Bill and may change upon publication of the Finance Act, 2022. 

Income Tax

The Finance Bill proposes to introduce the following changes to the Income Tax Act:

Widening of the definition of the word “Business” to include transactions carried out through the internet or digital market place

– The definition of the word “Business” has been made broader to include a transaction or activity carried out through the internet or an electronic means including an electronic service or transaction conducted in the digital market place.

– With this proposal, the term “digital market place” to mean a platform which enables direct interaction between buyers and sellers of goods and services through electronic means.

– This means that transactions such as websites, web-hosting, remote maintenance of programmes and equipment, software and the updating thereof, images, text, and information, access to databases, self-education packages, music, films, games, broadcasts and events including broadcast television, will now be subject to taxation in Tanzania.