Tanzania Case Law

LAND CASE NO

Court

TANZLII

The plaintiff's claims for rent increase and withholding tax from 2015 to 1st February 2021 are time barred and dismissed. The defendant breached the lease agreement by failing to give prior notice of new subtenants, failing to timely pay the 5% rent increase for new subtenants after 2021, and failing to provide proof of payment of withholding tax and stamp duty. The defendant is liable for general damages and must pay or provide proof of payment for withholding tax and stamp duty as per the lease agreement.

Source excerpt

• Lease agreement
• Breach of contract
• Limitation of actions
• Withholding tax
• Stamp duty
• General damages

Read case analysis

CG TRA vs Vodacom Tanzania WHT on accrual

Court

TANZLII

Withholding tax on interest on loan by corporations is payable on an accrual basis, not only upon actual payment, as the technical definition of 'payment' in section 3 of the Income Tax Act includes accruals; thus, late payment interest is lawfully imposed when withholding tax is not remitted when due.

Source excerpt

• Withholding tax
• Interpretation of tax statutes
• Accrual vs cash basis accounting
• Interest on late payment of tax

Read case analysis

mantra tanzania limited vs commissioner general tanzania revenue authority tra 2023 tzca 190 19 april 2023

Court

TZCA

The Court of Appeal held that payments under the Strategic Alliance Agreements were not rent, because the agreements did not create a lease and withholding tax did not arise.

• Withholding tax
• Definition of rent
• Lease vs licence
• Interpretation of agreements
• Tax liability
• Withholding-tax

Read case analysis

kilombero sugar company limited vs commissioner general tanzania authority 2022 tzca 636 19 october 2022

Court

TZCA

The Court of Appeal held that Article IV(1) of the Tanzania–Zambia DTA covers management fees as commercial profits, but the appellant still had to withhold tax.

• Withholding tax
• Double taxation agreements
• Management fees
• Interpretation of tax statutes
• Withholding-tax
• Double-taxation-agreements

Read case analysis

mlimani holdings limited vs the commissioner general 2022 tzca 437 18 july 2022

Court

TZCA

Service fees paid to a South African entity for architectural services do not constitute business profits under Article 7 of the DTA and are therefore subject to withholding tax in Tanzania under Article 20 and section 83(1)(b) of the Income Tax Act. The Court is bound by its previous decisions in Kilombero Sugar Company Limited v. Commissioner General and Mantra (Tanzania) Ltd v. Commissioner General TRA, and there was no proper basis to depart from those precedents.

Source excerpt

• Double taxation agreement
• Withholding tax
• Interpretation of treaties
• Business profits
• Precedent

Read case analysis

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

Read case analysis

national bank of commerce ltd vs the commissioner general tanzania revenue authority 2022 tzca 143 24 march 2022

Court

TZCA

Court of Appeal upheld the Tribunal’s decision that no fair-hearing breach occurred when it decided a withholding-tax issue already raised before the Board.

• Withholding tax
• Right to be heard
• Jurisdiction of appellate tribunal
• Taxation of non-resident services
• Withholding-tax
• Fair-hearing

Read case analysis

CIVIL APPEAL NO

Court

TANZLII

The certificate of delay could only validly exclude days up to 7th March, 2022, when the Tribunal Registrar furnished the proceedings. The appeal filed on 30th June, 2022 was filed 54 days out of time and is therefore incompetent.

Source excerpt

• Certificate of delay
• Appeal timelines
• Withholding tax
• Competence of appeal

Read case analysis

vodacom tanzania public limited company vs commissioner general tanzania revenue authority 2021 tzca 659 5 november 2021

Court

TZCA

Payment made by the appellant for the purchase of computer software was in the nature of, and is taxable as, royalty under section 34(1)(c) of the Income Tax Act, Cap. 332 of the Revised Edition, 2002. The Tribunal was justified in so holding, and prior decisions support this interpretation.

Source excerpt

• Withholding tax
• Royalty definition
• Software licensing
• Statutory interpretation

Read case analysis

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

Read case analysis