Following parliamentary approval of the 2022/2023 National Budget, the Parliament of the United Republic of Tanzania has enacted the Finance Act, 2022 (hereinafter referred to as “the Finance Act”) dated 30 June 2022 to impose and alter certain taxes, duties, levies, fees and to amend certain written laws relating to the collection and management of public revenues. The Finance Act is effective from 1 July 2022.

This newsletter supplements the analysis and insight in our Budget brief and Finance Bill summary. This document is not exhaustive but only summarises the key changes introduced by the Finance Act 2022.

Income Tax

The Finance Act has introduced 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 broadened 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 marketplace regardless of the  manner in which such transaction is carried out.

– The term “digital market place” has been defined to mean a platform which enables direct interaction between buyers and sellers of goods and services through electronic means. On the other hand, the definition of the term “electronic services” is borrowed from the VAT Act 2014.

– This means that transactions such as websites,  webhosting, 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.


More power vested to the Minister to provide exemption from income tax to special strategic investment projects approved by the National Investment Steering Committee (NISC)

– The Finance Act has empowered the Minister responsible for finance, to grant exemption from income tax in respect of a special strategic investment approved by the NISC under the Tanzania Investment Act, after being approved by the Cabinet. This only applies where the agreements provide for such income tax exemption.

– This is an extension of the Minister’s power following last year’s authority to exempt grant agreements, non-concessional or concessional loan agreements between the Government of the United Republic and a donor or lender.

– Therefore, this has widened the scope of  the Minister’s powers and will thus, assist to fast-track implementation of investments and harmonise the provisions of the Investment Act and the Income Tax Act.

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