ONOMO Hotel Dar es Salaam

Tanzania Finance Bill 2016: Alert by EY Tanzania

EY Tanzania

On 23rd June 2016 the Tanzania Parliament passed the Finance Bill 2016, which is subject to the President’s approval.

Income Tax Act, 2004 (ITA, 2004)

The following amendments were proposed:

  • Services rendered by nonresidents outside the United Republic of Tanzania are not subject to withholding tax (WHT). The proposed change of including all services in the WHT regime has been dropped.
  • Petroleum operations will be subject to 30% tax, the proposed change to 35% has been dropped.

Tax Administration Act, 2015

  • To validate an objection to tax decisions, a payment of the tax not in dispute or one third of the assessed tax whichever is greater remains unchanged. The proposal of payment of the whole amount of tax in dispute has been dropped. The payment to validate the objection has to be made within 30 days from the date of service of the tax decision.

Failure to pay the amount within 30 days from the date of service will lead to the decision becoming final.

TanzaniaInvest Whatsapp Channel

The Finance Act 2016 is expected to be in force from 1st July 2016.

RELATED:  Tanzania To Establish Single Tax Collection System For Businesses
Related Posts