Finance Act, 2021

This section states the Act’s short citation: Finance Act, 2021.

This Act comes into operation on 1 July 2021.

This section says this Part must be read together with the Companies Act, which it calls the principal Act.

This section amends the principal Act by repealing section 85 and replacing it with new text about non-issuance of a share warrant.

Companies must not issue share warrants for shares, and existing warrant holders must surrender them for cancellation within 12 months of the effective date.

This provision amends the principal Act by removing the words “share warrant or” from section 86 and indicates repeal of section 117.

This provision amends the principal Act by repealing section 4 and adding section 164A.

This section says this Part must be read together with the Electronic and Postal Communications Act, which is called the principal Act.

This section amends the principal Act by inserting a new provision after section 164 titled “Development levy on airtime”.

A levy is established on airtime at a rate of 5 to 222.70 Tanzanian Shillings, and the Minister may make regulations about how it is collected and accounted for after consulting the finance Minister.

This Part must be read together with the Excise (Management and Tariff) Act, called the principal Act.

Section 10 amends section 124 by adding a 10% rate for imported used motor cycles older than three years under Heading 87.11, and by adding a reference to a licensed payment system provider for money transfer and payment service.

This provision amends the principal Act’s Fourth Schedule by inserting a description below a specified entry.

This provision appears to set a tariff/rate line for code 2203.00.10, showing an old rate of Tshs. 765 per litre. The source text is incomplete for the new rate and partly garbled.

The text appears to list a price or rate of Tshs. 765 per litre and references 620.00 per litre, alongside an amendment to H.S. Code 2203.00.90 for “Locally produced”.

This line lists a rate of Tshs. 765 per litre for the barley-related items shown.

This provision appears to replace Heading 22.08 with a new tariff table and rate entries, including a rate of Tshs. 765 per litre.

This provision lists certain spirits and shows a charge of 6 Tshs for spirits obtained by distilling grape wine.

This provision lists per-litre amounts in Tanzanian shillings for specified products.

This section lists tariff rates for specified goods, showing the old and new rates for the listed HS codes.

This section replaces the Schedule in the principal Act with a new Schedule on stamp duty on instruments.

This section amends the principal Act by changing an item in the Schedule.

This provision amends Item 13 by adding new text immediately after sub-item 5.

This provision amends item 7 by deleting a specific phrase, and amends item 15 by adding text after sub-item 10.

This section amends a tax schedule by adding items for the supply or importation of certain smart phones, tablets, and modems.

This section lists imports of certain minerals, smart cards, and horticultural cold rooms by specified persons or entities.

The provision concerns imports of artificial grass for football pitches in City or Municipal Council areas and refers to approval by the National Sports Council of Tanzania.

This Part must be read together with the Government Loans, Grants and Guarantees Act (the principal Act).

This provision amends the principal Act by inserting new text after section 13A, but the quoted material is cut off in the source provided.

The Minister must issue a government guarantee, subject to approval, so an institution or company can borrow money up to the value of the Government’s shares in that institution or company for a strategic project.

This section says this Part must be read together with the Gaming Act, which is called the principal Act.

This provision amends section 31A by changing “twenty percent” to “fifteen percent” in subsection (1).

This section amends the principal Act’s Second Schedule by deleting item 1 and replacing it with new text.

Sports betting is taxed at 25% of gross gaming revenue, with 5% of the tax allocated to the Sports Development Fund.

Other gaming products licensed under section 51 must pay ten percent of gross gaming revenue.

This section says this Part must be read together with the Higher Education Student’s Loans Board Act.

The Board must not impose retention fees, charges, penalties, or other payments on repayment of a loan owed by a former student loan beneficiary unless the Minister approves it in consultation with the Minister responsible for finance.

This Part must be read together with the Income Tax Act, which is called the principal Act.

This section amends the definition of “permanent establishment” to include cases where a non-independent agent acts for another person in certain ways.

This amendment says the requirement in subsection (3)(b) does not apply to certain strategic projects and to specified government financing or grant agreements where tax exemption is provided.

The amendment says assets owned and used on an international pipeline are to be treated as depreciable assets in class 6, and it defines “international pipeline.”

This section amends the principal Act by adding wording after section 83A about withholding from agricultural, livestock, and fisheries products.

A resident corporation must withhold income tax when it pays for agricultural, livestock, or fishery products supplied by a resident person in the course of business.

Every withholding agent must file a monthly withholding tax statement with the Commissioner within seven days of the following month, in the prescribed manner and form, and include the withholdee’s Taxpayer Identification Number.

This section amends the First Schedule by deleting the table in paragraph 1(1) and replacing it with a new table.

This provision sets a threshold for cases where total income does not exceed 3,240,000/=.

If total income is above 3,240,000/= and does not exceed Tshs. 6,240,000/=, the rate payable is 8% of the amount above 3,240,000/=.

This provision sets a total-income band: income must be more than 6,240,000/= and not more than 9,120,000/= for the rule to apply.

This section applies when total income is above 9,120,000/= and not more than 12,000,000/=.

If total income exceeds 12,000,000/=, the text sets tax amounts and percentage steps for higher income bands.

This amendment adds a Schedule item covering interest from certain government bonds.

This section says this Part must be read together with the Local Government Authorities (Rating) Act, called the principal Act.

This section changes the definition of “rateable property” for plots with more than one building.

The Minister responsible for finance must arrange for 15% of the monies collected under subsection (1) to be remitted to the Ministry responsible for local government authorities.

This Part is to be read together with the Motor Vehicle (Tax on Registration and Transfer) Act, which is called the principal Act.

This provision amends the First Schedule by replacing “ten million” with “five million” in a proviso.

This section says this Part must be read together with the National Payment Systems Act, which it calls the principal Act.

This provision amends the principal Act by adding a "Money transfer levy" after section 46.

A levy is established on mobile money transfer transactions, and the Minister must make regulations on how it is collected and accounted for after consulting the Minister responsible for communication.

This section says this Part must be read together with the Non-Citizens (Employment Regulation) Act, which it calls the principal Act.

A person who does not submit a return to the Labour Commissioner on time is liable to a penalty of 500,000 shillings for each month or part of a month the delay continues.

This section says this Part must be read together with the Ports Act, which is called the principal Act.

The Authority must deposit all funds into a bank account at the Bank of Tanzania and spend money only according to its approved budget and with the Paymaster General’s approval.

This Part must be read together with the Public Audit Act.

This section defines “public authority” or “body” for the principal Act.

The Minister’s report must be laid before the National Assembly at its next sitting after the Controller and Auditor General’s report is submitted.

This section says this Part must be read together with the Road and Fuel Tolls Act, called the principal Act.

This amendment replaces paragraph (a) of section 4A with a rule allocating Tanzania shillings 363 per litre imposed on petrol or diesel, including a specified amount for the Tanzania Rural and Urban Roads Agency.

This section amends the Second Schedule by replacing figure 313 with 413 in items 1 and 2.

This Part must be read together with the Stamp Duty Act, which is called the principal Act.

Sets a fee for acknowledgement of a debt based on the debt amount.

This section lists an administration bond entry and associated amounts, including Tshs. 2000 and Nil, but the exact rule is unclear from the text alone.

This provision defines several document types and lists exemptions for some affidavits and agreements.

This section sets duty amounts for instruments about deposit of title deeds, hypothecation, pawn, or pledge.

This section lists appointment in execution of power and appraisement or valuation matters, including a separate treatment where the amount is under TShs. 1,000/=.

This section lists several valuations and documents that are exempt under the provision.

This section lists bills of sale as absolute, by way of security, or by way of collateral security, with a TShs. 1,000 threshold for collateral security.

This section lists certain bonds and related instruments that are exempt from duty, including some charitable bonds, criminal bail bonds, cancellation instruments in limited cases, and certain certificates of sale.

This provision lists several monetary rates and caps, including percentages and fixed amounts in Tanzanian shillings.

A rate of 0.5% applies to the first TShs. 100,000, and 1% applies to amounts above TShs. 100,000.

A 0.5% rate applies to the first TShs. 100,000, and 1% applies to value above TShs. 100,000.

This section defines several document types and sets stamp duty amounts and exemptions for certain conveyances.

This section sets a TShs. 2,000 fee for certified copies or extracts, with listed exemptions.

This section lists duty amounts for certain instruments and sets out exemptions for some duplicates, contracts of service, and certain debentures.

This entry sets duty amounts for an exchange of property instrument, including a TShs. 2,000 amount, a rate of TShs. 40 per 1,000, and a maximum of TShs. 5,000.

A 0.5% rate applies to the first TShs. 100,000, and 1% applies to value above TShs. 100,000.

The section defines several instrument types, exempts certain indemnity bonds, and sets a charge of 1% with a maximum of TShs. 10,000.

This provision sets duty-style amounts and rates for certain documents and leases, including exemptions for some Mining Act and Export Processing Zones Act matters.

Section 42 lists stamp duty amounts and exemptions for several instruments, including company memoranda, mortgage deeds, notarial acts, broker notes, and ship protest notes.

This section sets stamp duty rules and rates for partition, partnership, and certain insurance policies, including reductions, minimum duty, exemptions, and amount-based brackets.

This text appears to set stamp duty rates and related exemptions for certain insurance policies.

Section 46 lists a TShs. 2000 fee for several kinds of authorisations and states exemptions for certain bank and corporate authorisations.

This section defines certain documents and shows the duty payable for some of them, including a proxy and a receipt below a stated amount.

An amount exceeding TShs. 1,000/= is subject to 1 percent.

The provision sets a 0.5% amount for bureau de change margins, defined as the difference between selling and buying, and lists several receipt-related exemptions.

A duty of 1% applies to the mortgage value for reconveyance or release/discharge of a mortgage or charge, but it cannot exceed TShs. 1,000.

This section defines “release” and “respondentia bond.”

The rate is 0.25% for the first TShs. 100,000 and 1% for value above TShs. 100,000.

The provision sets stamp duty amounts for security bonds, mortgage deeds, and settlement instruments, with caps and some exemptions.

Share warrants to bearer are charged 0.25% on the first TShs. 100,000 and 1% on any value above that, with an exemption note for certain company-issued share warrants.

The text sets rates of 0.17% for the first TShs. 100,000 and 1.3% for value above that amount, and also mentions 3/4% of a company’s subscribed capital or additional capital in a later condition.

Surrender of lease may be exempt from duty in some cases, including where the lease itself is already exempted from duty.

This section sets stamp duty for different kinds of transfers, including shares, debentures, secured interests, trust property, and certain property transfers under the Administrator General Act, and it gives some exemptions and reduced rates.

A lease transfer is to be done by assignment, not by under-lease.

Sets a 0.5% charge on the first TShs. 100,000, then 1% on value above TShs. 100,000.

The section sets duty amounts for tribute agreements involving claims and mining leases, including rates based on production value, profits, or rent.

This provision defines “warrant for goods” and excludes wills and similar testamentary instruments.

This text appears to be an amendment heading and a Tshs. 2000 amount, but it does not state a clear rule by itself.

This Part must be read together with the Tanzania Communications Regulatory Authority Act, which is called the principal Act.

The Authority must deposit all its funds into a bank account at the Bank of Tanzania.

This Part must be read together with the Tanzania Shipping Agencies Act, which is called the principal Act.

This section amends section 35(2) so the reference is changed to a bank account opened at the Bank of Tanzania, and the Corporation’s expenditure must be disbursed according to its budget and with the Paymaster General’s approval.

This provision says this Part must be read together with the Tax Administration Act.

A person who becomes potentially liable to tax from carrying on a business, investment, or employment must apply for a Taxpayer Identification Number within the stated commencement time.

Section 28A(1) is amended by replacing “taxpayer” with “person”.

This section amends section 28B of the principal Act.

This section changes section 28C by replacing “resolving” with “handling” in paragraphs (b) and (c).

The Act changes section 28D by replacing paragraph (c) with “tax decision or objection decision.”

A taxpayer who must file an official translation under subsection (1) must submit it within the time set under section 44.

Certain liable persons must keep a primary data server in the United Republic and make it accessible to the Commissioner General for tax administration.

The principal Act is amended by replacing the word “within” in section 39(2) with “not less than”.

This provision amends section 44(1) of the principal Act by replacing “who is” with “whether or”.

This provision changes the wording of section 51(7) of the principal Act about objections to tax decisions.

The amendment changes when property rate is paid: for property rate, it is paid at the time electricity is paid for, and some subsection requirements do not apply to a taxpayer paying under subsection (1)(d).

This section amends section 70 of the principal Act by renumbering the content of subsection (1) as section 70 and deleting subsection (2).

Section 74 of the principal Act is amended to add the words “or tax” in subsection (1).

This section amends section 79 to add a rule about controlled transactions and a penalty of 100 percent of the tax shortfall for contravention.

This section amends section 85(3) of the principal Act and repeals section 92A.

The principal Act is amended by repealing a section relating to the Third Schedule.

The Third Schedule is amended to add a new row about employee registration.

This Part must be read together with the Tanzania Revenue Authority Act, which is called the principal Act.

This section amends section 10(1) of the principal Act by replacing one paragraph, deleting another, and renumbering a paragraph.

This Part must be read together with the Tax Revenue Appeals Act, which is called the principal Act.

An appeal party may ask for mediation before judgment, and the Board or Tribunal must manage the mediation outcome and not reopen issues already settled amicably.

This section says the part must be read together with the Value Added Tax Act, which it calls the principal Act.

This section sets VAT treatment for certain taxable supplies of goods between Tanzania Zanzibar and Mainland Tanzania, including when no tax is payable and when the Tanzania Revenue Authority must collect and remit VAT.

The Commissioner General may exempt value added tax on specified imports or supplies if an applicant applies in the prescribed form.

This section replaces section 11(10) of the principal Act with a new definition of “capital goods.”

This section amends the principal Act by repealing a section.

This section amends section 59 of the principal Act and adds a new item covering transportation and incidental services supplied to an international pipeline.

This provision changes section 94(2) so that paragraph (g) now covers prescribing how value added tax collected for goods supplied to a registered taxable person in Tanzania Zanzibar is remitted.

This section says this Part must be read together with the Vocational Education and Training Act, which it calls the principal Act.

Section 14 is amended by replacing the word “four” with “ten”.

This section amends section 19(1)(e) of the principal Act by deleting the word “or” at the end of subparagraph (i) and adding “provide public health” after subparagraph (ii).