The Finance Act, 2020
The Finance Act, 2020 (the Finance Act) was published on 19 June 2020 to make amendments to a raft of laws in Tanzania, including the Income Tax Act (CAP 332), the Value Added Tax Act (CAP 148), the Tax Administration Act (CAP 438), the Vocational Education and Training Act (CAP 82), the Excise Duty (Management and Tariff Act (CAP 147), the Mining Act (CAP 123) among others.
The Finance Act, which was effective from 1 July 2020, has introduced a number of amendments with key focus appearing to be on the taxation of income sourced in Tanzania by non-residents. The changes introduced intend to increase the tax base and sustain government revenue, improve administrative measures of handling tax examinations by the Tanzania Revenue Authority and taxpayers’ objections.
We have also observed amendments in the Income Tax exemption regime whereby tax exemptions have been introduced on strategic projects and cooperative societies conversely income tax exemptions on investors operating in the special economic zone and beneficiaries of a resident trust have been removed.
The Finance Act has also addressed the issue of VAT refunds which was contentious in the Mining sector.
We have put together a comprehensive overview of the key changes in the Finance Act as well as their potential impact on business. Click here to read the full article.
ALN Tanzania | A&K Tanzania
ALN Tanzania| A&K Tanzania