Tanzania Case Law

dominion tanzania limited vs commissioner general tra 2022 tzca 398 28 june 2022

Court

TZCA

Payments made by a resident in Tanzania to a non-resident for services rendered outside Tanzania but utilized in Tanzania are subject to withholding tax under sections 6(1)(b), 69(i)(i), and 83(1)(b) of the Income Tax Act, 2004; amendments in 2016 and 2020 clarified the law and did not change its substance.

Source excerpt

• Withholding tax
• Cross-border payments
• Source of income
• Statutory interpretation
• Retrospective application of statutes

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mantra tanzania ltd vs the commissioner general tanzania revenue authority 2021 tzca 657 5 november 2021

Court

TZCA

Payments for services delivered or utilized in Tanzania by non-resident suppliers are deemed to have their source in Tanzania for withholding tax purposes, regardless of where the services were physically performed. Article 7 of the Double Taxation Agreement exempts only business profits, not service fees or business transactions, thus withholding tax applies. The appellant is not entitled to a refund as the tax was correctly imposed.

Source excerpt

• Withholding tax
• Double taxation agreement
• Source of income
• Interpretation of tax statutes

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ophir tanzania block 1 limited vs commissioner genera tanzania revenue authority 2021 tzca 350 6 august 2021

Court

TZCA

The Court held that the obligation to withhold tax arises when a Tanzanian resident pays a service fee to a non-resident for services utilized in Tanzania, regardless of where the services are performed. The source of payment is Tanzania if the payment is made by a Tanzanian resident for services consumed in Tanzania. The Court reaffirmed its previous decisions and declined to depart from the established interpretation.

Source excerpt

• Withholding tax
• Source of income
• Interpretation of tax statutes
• International taxation

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CIVIL APPEAL NO 158 OF 2021 KABANGA NICKEL COMAPNY LIMITED VS COMMISIONER GENERAL TANZANIA REVENUE AUTHORITY

Court

TANZLII

Payments made by a resident company to non-resident service providers for services delivered and utilized in Tanzania are subject to withholding tax under sections 6(1)(b), 69(i)(i), and 83(1)(b) of the Income Tax Act, 2004, regardless of where the services are performed. The Finance Act, 2020 did not change the law but clarified the existing position.

Source excerpt

• Withholding tax
• Source of income
• Taxation of non-residents
• Statutory interpretation

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national microfinance bank ltd vs commissioner general tra 2019 tzca 672 1 july 2019

Court

TZCA

The Software Licence Agreement constituted a lease under the Income Tax Act, and payments made under it were royalties subject to withholding tax. Service fees paid to non-residents for services rendered to assets in Tanzania are also subject to withholding tax, as the source of payment is Tanzania, regardless of where the services were performed.

Source excerpt

• Withholding tax
• Royalty payments
• Software licensing
• Source of income
• Interpretation of tax statutes

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commissioner general tanzania revenue authority tra vs aggreko international projects ltd 2019 tzca 178 28 june 2019

Court

TZCA

Payments for management fees made by the respondent to non-resident service providers for services consumed in Tanzania are sourced in Tanzania and subject to withholding tax under sections 6(1)(b), 69(i)(i), and 83(1)(b) of the Income Tax Act, 2004. The Tribunal erred in law by not properly construing these provisions. Interest is payable on the principal tax for delayed payment.

Source excerpt

• Withholding tax
• Source of income
• Management fees
• Non-resident service providers

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national microfinance bank t ltd vs commissioner general tanzania revenue authority 2019 tzca 182 25 june 2019

Court

TZCA

The Software Licence Agreement constituted a lease under section 3 of the Income Tax Act, 2004, and payments made were royalty subject to withholding tax. Service fees paid to non-residents for services rendered on assets in Tanzania have a source in Tanzania and are subject to withholding tax regardless of where the services were performed.

Source excerpt

• Withholding tax
• Royalty payments
• Software licensing
• Source of income
• Service fees

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tullow tanzania bv vs commissioner general tanzania revenue authority 2018 tzca 82 4 july 2018

Court

TZCA

Payments made by a Tanzanian resident for services utilized in Tanzania, regardless of where the services are performed, have a source in Tanzania and are subject to withholding tax under sections 6(1)(b), 69(i)(i), and 83(1)(b) of the Income Tax Act, 2004.

Source excerpt

• Withholding tax
• Source of income
• Cross-border payments
• Interpretation of tax statutes

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commissioner general tra vs pan african energy tanzania limited 2016 tzca 807 16 may 2016

Court

TZCA

Under section 69(i)(i) of the Income Tax Act, only service fees paid for services rendered in Tanzania are subject to withholding tax by private entities. Since the services were rendered outside Tanzania, the respondent was not liable to withhold tax.

Source excerpt

• Withholding tax
• Source of income
• Non-resident taxation
• Interpretation of tax statutes

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bp tanzania vs the commissioner general of the tanzania revenue authority 2016 tzca 749 29 february 2016

Court

TZCA

The Court of Appeal held that royalty payments to non-resident providers for services used in Tanzania were subject to withholding tax, but fees tied to the BP Provident Fund were not.

• Withholding tax
• Royalties
• Source of income
• Interpretation of tax statutes
• Withholding-tax
• Source-of-income

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