Finance Act, 2021
This section states the Act’s short citation: Finance Act, 2021.
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- Finance Act, 2021
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Statute overview
About this statute
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.
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Legal text
Provisions of Finance Act, 2021
Showing 144 of 144
Part
PART I
- 1 Verify source ↗
This Act may be cited as the Finance Act, 2021
AI-assisted research summary: This section states the Act’s short citation: Finance Act, 2021.
1. This Act may be cited as the Finance Act, 2021. Commencement - 2 Verify source ↗
This Act shall come into operation on the 1st
AI-assisted research summary: This Act comes into operation on 1 July 2021.
2. This Act shall come into operation on the 1st day of July, 2021. PART II AMENDMENT OF THE COMPANIES ACT, (CAP. 212) Construction Cap. 212 Repeal and replacement of section 85
Part
PART II
- 3 Verify source ↗
This Part shall be read as one with the Companies
AI-assisted research summary: This section says this Part must be read together with the Companies Act, which it calls the principal Act.
3. This Part shall be read as one with the Companies Act, hereinafter referred to as “the principal Act”. - 4 Verify source ↗
The principal Act is amended by repealing section
AI-assisted research summary: This section amends the principal Act by repealing section 85 and replacing it with new text about non-issuance of a share warrant.
4. The principal Act is amended by repealing section 85 and replacing for it the following: “Non issuance of share warrant - 85 Verify source ↗
(1) Notwithstanding
AI-assisted research summary: Companies must not issue share warrants for shares, and existing warrant holders must surrender them for cancellation within 12 months of the effective date.
85.-(1) Notwithstanding anything contained in its memorandum and articles of association, a company shall not, with effect 3 No. 3 The Finance Act 2021 from the effective date, issue share warrant in respect of any shares. (2) A bearer of a share warrant shall, within twelve months from the effective date, surrender to the company the issued share warrant for cancellation. (3) Upon surrender of the share warrant under subsection (2), the company shall- (a) cancel the share warrant; (b) enter in its register of members and beneficial owners, the names of persons whose share warrants have been cancelled; and (c) notify the Registrar of any changes in the register of members and beneficial owners effected pursuant to this section. (4) Any share warrant which is not surrendered after the expiry of a period of twelve months from the effective date shall be deemed to be cancelled. (5) Notwithstanding subsection (4), the Registrar may allow surrender of share warrant after the expiry of the period of twelve months from the effective adducing date reasonable grounds of delay. upon (6) For purposes of this section- “bearer of share warrant” means a person who held a share warrant on or before the effective date; and “effective date” means 1st July, 2021.”. Amendment of section 86 - 5 Verify source ↗
The principal Act is amended by deleting the words
AI-assisted research summary: This provision amends the principal Act by removing the words “share warrant or” from section 86 and indicates repeal of section 117.
5. The principal Act is amended by deleting the words “share warrant or” wherever they appear in section 86. Repeal of section 117 - 6 Verify source ↗
The principal Act is amended by repealing section
AI-assisted research summary: This provision amends the principal Act by repealing section 4 and adding section 164A.
6. The principal Act is amended by repealing section 4 No. 3 The Finance Act 2021 PART III AMENDMENT OF THE ELECTRONIC AND POSTAL COMMUNICATIONS ACT, (CAP. 306) Construction Cap. 306 Addition of section 164A
Part
PART III
- 7 Verify source ↗
This Part shall be read as one with the Electronic
AI-assisted research summary: This section says this Part must be read together with the Electronic and Postal Communications Act, which is called the principal Act.
7. This Part shall be read as one with the Electronic and Postal Communications Act, hereinafter referred to as the “principal Act”. - 8 Verify source ↗
The principal Act
AI-assisted research summary: This section amends the principal Act by inserting a new provision after section 164 titled “Development levy on airtime”.
8. The principal Act is amended by adding immediately after section 164 the following: “Development levy on airtime - 164A Verify source ↗
(1) There is established a levy
AI-assisted research summary: 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.
164A.-(1) There is established a levy to be charged on airtime at a rate ranging from 5 to 222.70 Tanzanian Shillings. shall, (2) The Minister after consultation with the Minister responsible for finance, make regulations prescribing the manner and modality under which the levy may be collected and accounted for.”. - 9 Verify source ↗
This Part shall be read as one with the Excise
AI-assisted research summary: This Part must be read together with the Excise (Management and Tariff) Act, called the principal Act.
9. This Part shall be read as one with the Excise (Management and Tariff) Act, hereinafter referred to as the “principal Act”. - 10 Verify source ↗
The principal Act is amended in section 124
AI-assisted research summary: 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.
10. The principal Act is amended in section 124- (a) in subsection (5A), by adding immediately after paragraph (b) the following: “(c) 10% in respect of imported used motor cycles aged more than three years under Heading 87.11.”; and (b) in subsection (6A), by adding immediately after paragraph (b) the following: “(c) a payment system provider licensed under the National Payment Systems Act for money transfer and payment service.”. Cap. 437 - 11 Verify source ↗
The principal Act is amended in the Fourth
AI-assisted research summary: This provision amends the principal Act’s Fourth Schedule by inserting a description below a specified entry.
11. The principal Act is amended in the Fourth Schedule by- (a) inserting immediately below “Locally produced” appearing 2203.00.10 the following: the description in H.S Code Construction Cap. 147 Amendment of section 124 Amendment of Schedule 5 No. 3 The Finance Act 2021 “ Heading H.S. Code Description
Part
Schedule
- 22
AI-assisted research summary: 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.
22.03 No. 2203.00.10 Made from % from or 100 Locally Grown Barley Made wholly partially Imported Barley Unit Old Rate Tshs. 765 per litre l New Rate Tshs. - 620 Verify source ↗
00 per
AI-assisted research summary: 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”.
620.00 per litre l Tshs. 765 per litre Tshs. 765 per litre ” (b) inserting immediately below the description “Locally produced” appearing in H.S Code 2203.00.90 the following: “ Heading H.S. Code Description No. - 22
AI-assisted research summary: This line lists a rate of Tshs. 765 per litre for the barley-related items shown.
22.03 2203.00.90 Made from 100 % Locally Grown Barley from Made wholly or partially Imported Barley l Unit Old Rate Tshs. 765 per litre Tshs. 765 per litre l New Rate Tshs. - 620 Verify source ↗
00 per
AI-assisted research summary: This provision appears to replace Heading 22.08 with a new tariff table and rate entries, including a rate of Tshs. 765 per litre.
620.00 per litre Tshs. 765 per litre ” (c) deleting the whole of Heading 22.08 and substituting for it the following: “ Heading H.S. Code Description Unit Old Rate New Rate No. - 22
AI-assisted research summary: This provision lists certain spirits and shows a charge of 6 Tshs for spirits obtained by distilling grape wine.
22.08 2208.20.00 2208.20.00 Undenatured ethyl alcohol of an alcoholic strength by volume of than 80% vol; less liqueurs and spirits, other spirituous beverages. - Spirits obtained by distilling grape wine or from grape marc locally produced grapes. Other locally produced spirits this heading under Imported spirits under this heading: - Spirits obtained by distilling grape wine 6 Tshs. - 540
AI-assisted research summary: This provision lists per-litre amounts in Tanzanian shillings for specified products.
540.00 per litre Tshs. 3,315.00 per litre Tshs. 3,978.0 per litre Tshs. 3,655.05 Tshs. 4,386.0 ɭ ɭ No. 3 The Finance Act 2021 or grape marc 2208.30.00 - Whiskies 2208.40.00 2208.50.00 - Rum and other spirits obtained by distilling fermented sugar – cane products - Gin and Geneva 2208.60.00 - Vodka 2208.70.00 - Liqueurs and cordials 2208.90.10 - Other: --- Distilled Spirits (e.g. Konyagi, Uganda Waragi) 2208.90.90 --- Other ɭ ɭ ɭ ɭ ɭ ɭ ɭ per litre Tshs. 3,655.05 per litre Tshs. 3,655.05 per litre Tshs. 3,655.05 per litre Tshs. 3,655.05 per litre Tshs. 3,655.05 per litre Tshs. 3,655.05 per litre Tshs. 3,655.05 per litre 6 per litre Tshs. 4,386.0 6 per litre Tshs. 4,386.0 6 per litre Tshs. 4,386.0 6 per litre Tshs. 4,386.0 6 per litre Tshs. 4,386.0 6 per litre Tshs. 4,386.0 6 per litre Tshs. 4,386.0 6 per litre “ Heading - 56
AI-assisted research summary: This section lists tariff rates for specified goods, showing the old and new rates for the listed HS codes.
56.07 ” H.S. Code No. Description Unit Old Rate New Rate 5511.10.00 5511.20.00 5511.30.00 Yarn (other than sewing thread) of man-made staple fibres, put up for retail sale. - Of synthetic staple fibres, containing 85% or more by weight of such fibres: Locally manufactured Imported - Of synthetic staple fibres, containing less than 85% by weight of such fibres: Locally manufactured Imported - Of artificial staple fibres: Locally manufactured Imported Twine, cordage, ropes and cables, whether or not plaited or braided and whether or 7 kg kg kg N/A N/A 10% 10% N/A N/A 10% 10% N/A N/A 10% 10% No. 3 The Finance Act 2021 not impregnated, coated, covered or sheathed with rubber or plastics. - Of sisal or other textile fibres of the genus Agave: 5607.21.00 -- Binder or baler kg 5607.29.00 5607.41.00 5607.49.00 5607.50.00 5607.90.00 twine Locally manufactured Imported -- Other Locally manufactured Imported - Of polyethylene or polypropylene: -- Binder or baler twine Locally manufactured Imported -- Other Locally manufactured Imported - Of other synthetic fibres (except fishing twine for manufacture of fishing nets) or Locally manufactured Imported - Other Locally manufactured Imported kg kg kg kg kg N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% ” PART V AMENDMENT OF THE GOVERNMENT LOANS, GRANTS AND GUARANTEES ACT, (CAP. 134) Construction Cap.134 - 45 Verify source ↗
The principal Act is amended by deleting the
AI-assisted research summary: This section replaces the Schedule in the principal Act with a new Schedule on stamp duty on instruments.
45. The principal Act is amended by deleting the Schedule and substituting for it the following: “_________ SCHEDULE _________ STAMP DUTY ON INSTRUMENTS (Made under section 5) Article No. Description of Instruments Stamp Duty - 79 Verify source ↗
The principal Act is amended in the Schedule
AI-assisted research summary: This section amends the principal Act by changing an item in the Schedule.
79. The principal Act is amended in the Schedule- (a) in Part I- (i) in Item 6, by deleting sub-item 2 and substituting for it the following: 40 No. 3 The Finance Act 2021 “ No. - 2 Verify source ↗
Section 2
AI-assisted research summary: This provision amends Item 13 by adding new text immediately after sub-item 5.
2. Implements Aluminium and Stainless-Steel Milk Cans HSC 7310.29.90, 7310.10.00 7612.90.90 ” (ii) in Item 13, by adding immediately after sub-item 5 the following: “ - 6 Verify source ↗
Section 6
AI-assisted research summary: This provision amends item 7 by deleting a specific phrase, and amends item 15 by adding text after sub-item 10.
6. Livestock farming insurance ” (iii) in item 7, by deleting the phrase “and printed for use by a local manufacturer whose name appears on the packing material” appearing immediately after the word “products” in sub item (1). (iv) in item 15, by adding immediately after sub-item 10 the following: “ - 11 Verify source ↗
Crude oil
AI-assisted research summary: This section amends a tax schedule by adding items for the supply or importation of certain smart phones, tablets, and modems.
11. Crude oil 2709.00.00 ” (v) in item 21, by deleting the words “solar lights”; (vi) by adding immediately after item 26 the following: “27. A supply or importation of smart phones of HS Code 8517.12.00, tablets of HS Code 8471.30.00 or HS Code 8517.12.00 and modems of HS Code 8517.62.00 or 8517.69.00”; (b) in Part II, by adding immediately after item 24 the following- 41 No. 3 The Finance Act 2021 “ - 27 Verify source ↗
Section 27
AI-assisted research summary: This section lists imports of certain minerals, smart cards, and horticultural cold rooms by specified persons or entities.
27. An tin, import of precious minerals, tungsten, tantalum, mineral concentrates and loaded carbon by any person for processing, smelting, refining or sale in the Mineral and Gem Houses or buying stations designated by the Mining Commission. An import of Contactless Smart Cards and Consumables of HS Code 3921.11. 90 by the National Identification Authority. An import of cold rooms of HS Code 9406.10.10 and 9406.90.10 by a person engaged in horticulture. - 28 Verify source ↗
An import of artificial grass of HS Code
AI-assisted research summary: 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.
28. An import of artificial grass of HS Code 5703.30.00 and 5703.20.00 for football pitches located in City or Municipal Council approved by the National Sports Council of Tanzania. ” PART XXIII AMENDMENT OF THE VOCATIONAL EDUCATION AND TRAINING ACT, (CAP. 82) Construction Cap. 82
Part
PART V
- 12 Verify source ↗
This Part shall be read as one with the Government
AI-assisted research summary: This Part must be read together with the Government Loans, Grants and Guarantees Act (the principal Act).
12. This Part shall be read as one with the Government Loans, Grants and Guarantees Act, hereinafter referred to as the “principal Act”. Addition of section 13B - 13 Verify source ↗
The principal Act
AI-assisted research summary: This provision amends the principal Act by inserting new text after section 13A, but the quoted material is cut off in the source provided.
13. The principal Act is amended by adding immediately after section 13A the following: “Issuance of guarantee to institution or company the Cabinet, - 13B Verify source ↗
Notwithstanding the provisions
AI-assisted research summary: 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.
13B. Notwithstanding the provisions of sections 13 and 13A, the Minister shall, issue a upon approval of guarantee for and on behalf of the Government to an institution or company to borrow an amount of money not exceeding the value of shares of the Government in an institution or company operating a strategic project.”. 8 No. 3 The Finance Act 2021 PART VI AMENDMENT OF THE GAMING ACT, (CAP. 41) Construction Cap. 41 Amendment of section 31A Amendment of Second Schedule
Part
PART VI
- 14 Verify source ↗
This Part shall be read as one with the Gaming Act
AI-assisted research summary: This section says this Part must be read together with the Gaming Act, which is called the principal Act.
14. This Part shall be read as one with the Gaming Act hereinafter referred to as the “principal Act”. - 15 Verify source ↗
The principal Act is amended in section 31A by
AI-assisted research summary: This provision amends section 31A by changing “twenty percent” to “fifteen percent” in subsection (1).
15. The principal Act is amended in section 31A by deleting the words “twenty percent” appearing in subsection (1) and substituting for them the words “fifteen percent”. - 16 Verify source ↗
The principal Act is amended in the Second
AI-assisted research summary: This section amends the principal Act’s Second Schedule by deleting item 1 and replacing it with new text.
16. The principal Act is amended in the Second Schedule, by- (a) deleting item 1 and substituting for it the following: “
Part
Schedule, by-
- 1 Verify source ↗
Section 1
AI-assisted research summary: Sports betting is taxed at 25% of gross gaming revenue, with 5% of the tax allocated to the Sports Development Fund.
1. Sports Betting Twenty-five percent of Gross Gaming Revenue. Provided that five percent of the tax shall be allocated the Sports Development Fund. to ” (b) adding immediately after item 5 the following: “ - 7 Verify source ↗
Other Gaming Products
AI-assisted research summary: Other gaming products licensed under section 51 must pay ten percent of gross gaming revenue.
7. Other Gaming Products Licenced under section 51 Ten percent of Gross Gaming Revenue. Ten percent of Gross Gaming Revenue. ” PART VII AMENDMENT OF THE HIGHER EDUCATION STUDENT’S LOANS BOARD ACT, (CAP. 178) Construction Cap. 178
Part
PART VII
- 17 Verify source ↗
This Part shall be read as one with the Higher
AI-assisted research summary: This section says this Part must be read together with the Higher Education Student’s Loans Board Act.
17. This Part shall be read as one with the Higher Education Student’s Loans Board Act, hereinafter referred to as the “principal Act”. Amendment of section 7 - 18 Verify source ↗
The principal Act is amended in section 7 by
AI-assisted research summary: 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.
18. The principal Act is amended in section 7 by adding immediately after subsection (1) the followimg: “(2) Notwithstanding the provisions of this section, the Board shall not impose retention fee or any other fee, charges, penalty or payments on repayment of 9 No. 3 The Finance Act 2021 loan owed by former student loan beneficiary without approval of the Minister in consultation with Minister responsible for finance.” PART VIII AMENDMENT OF THE INCOME TAX ACT, (CAP. 332) Construction Cap. 332 Amendment of section 3
Part
PART VIII
- 19 Verify source ↗
This Part shall be read as one with the Income Tax
AI-assisted research summary: This Part must be read together with the Income Tax Act, which is called the principal Act.
19. This Part shall be read as one with the Income Tax Act hereinafter referred to as the “principal Act”. - 20 Verify source ↗
The principal Act is amended in section 3 in the
AI-assisted research summary: This section amends the definition of “permanent establishment” to include cases where a non-independent agent acts for another person in certain ways.
20. The principal Act is amended in section 3 in the definition of the term “permanent establishment” by adding a proviso immediately after paragraph (a) as follows: “Provided that, where an agent other than an independent agent is acting on behalf of another person, that other person shall be deemed to have a permanent establishment if- (i) the agent other than independent agent has and habitually exercises authority to (ii) conclude contracts or issues invoice on behalf of that other person, unless his activities are limited to the purchase of goods or merchandise for that other person; (iii) the agent other than independent agent has no authority to conclude contracts, but habitually maintains stock of goods or regularly merchandise delivers goods or merchandise on behalf of that other person; or from which he (iv) the agent other than independent agent habitually secures orders, wholly or almost wholly for that other person or for the enterprise and other enterprises controlling, the same controlled by, or subject that other common control, as person.” to that of Amendment of section 10 - 21 Verify source ↗
The principal Act is amended in section 10 by
AI-assisted research summary: 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.
21. The principal Act is amended in section 10 by deleting subsection (4) and substituting for it the following: “(4) The requirement under subsection (3)(b) shall not apply to- (a) a strategic project with a total tax payable not exceeding one billion shillings the entire project period; or for (b) grant agreement, non-concessional 10 No. 3 The Finance Act 2021 loan agreement or concessional between the Government of the United Republic and a donor or agreement lender where tax for provides exemption.”. income such Amendment of section 65N by- - 22 Verify source ↗
The principal Act is amended in section 65N(1),
AI-assisted research summary: 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.”
22. The principal Act is amended in section 65N(1), (a) adding immediately after paragraph (b) a proviso as follows: “Provided that, assets owned and employed by a person on international pipeline shall be treated as depreciable assets of class 6 pool of depreciable assets.”; and (b) adding immediately after subsection (1) the following: “(1A) For purposes of subsection (1), “international pipeline” means a cross border pipeline for transportation of crude oil from a foreign country to a port facility in the United Republic in which such crude oil is exported to another foreign country.”. Addition of section 83B - 23 Verify source ↗
The principal Act
AI-assisted research summary: This section amends the principal Act by adding wording after section 83A about withholding from agricultural, livestock, and fisheries products.
23. The principal Act immediately after section 83A the following: is amended by adding “Withholdi ng from agricultural, livestock and fisheries products - 83B Verify source ↗
(1) A resident corporation which
AI-assisted research summary: 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.
83B.-(1) A resident corporation which makes a payment in respect of agricultural, livestock and fishery products supplied by a resident person in the course of conducting business shall withhold income tax at the rate specified under paragraph 4(c) of the First Schedule. (2) For purposes of this section, resident include not agricultural marketing cooperative societies and cooperative unions.”. corporation shall Amendment of section 84
Part
Schedule.
- 24 Verify source ↗
The principal Act is amended in section 84(2), by
AI-assisted research summary: 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.
24. The principal Act is amended in section 84(2), by - (a) deleting the opening phrase and substituting for it the following: “(2) Every withholding agent shall file with the Commissioner, within seven days of the month following the month to which the tax relates, a withholding tax statement for the calendar month in the manner and form prescribed, specifying-”; 11 No. 3 The Finance Act 2021 (b) adding immediately after paragraph (b) the following: “(c) Taxpayer Identification Number of the withholdee;”; and (c) renaming paragraphs (c) and (d) as paragraphs (d) and (e) respectively. Amendment of First Schedule - 25 Verify source ↗
The principal Act is amended in the First Schedule,
AI-assisted research summary: This section amends the First Schedule by deleting the table in paragraph 1(1) and replacing it with a new table.
25. The principal Act is amended in the First Schedule, by deleting the table appearing in paragraph 1(1) and substituting for it the following: “ TOTAL INCOME - 1 Verify source ↗
Where the total income does not
AI-assisted research summary: This provision sets a threshold for cases where total income does not exceed 3,240,000/=.
1.Where the total income does not exceed 3,240,000/= - 2 Verify source ↗
Where the total income exceeds
AI-assisted research summary: 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/=.
2. Where the total income exceeds 3,240,000/= but does not exceed Tshs.6,240,000/= 8% of the amount in excess of Tshs. 3,240,000/= RATE PAYABLE NIL - 3 Verify source ↗
Where the total income exceeds
AI-assisted research summary: 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.
3. Where the total income exceeds 6,240,000/= but does not exceed 9,120,000/= - 4 Verify source ↗
Where the total income exceeds
AI-assisted research summary: This section applies when total income is above 9,120,000/= and not more than 12,000,000/=.
4. Where the total income exceeds 9,120,000/= but does not exceed 12,000,000/= - 5 Verify source ↗
Where the total income exceeds
AI-assisted research summary: If total income exceeds 12,000,000/=, the text sets tax amounts and percentage steps for higher income bands.
5. Where the total income exceeds 12,000,000/= Tshs.240,000/= plus 20% of the amount in excess of 6,240,000/= Tshs. 816,000/= plus 25% of the amount in excess of 9,120,000/= Tshs.1,536,000/= plus 30% of the amount in excess of 12,000,000/= ” Amendment of Second Schedule - 26 Verify source ↗
The principal Act is amended in paragraph 1(1) of
AI-assisted research summary: This amendment adds a Schedule item covering interest from certain government bonds.
26. The principal Act is amended in paragraph 1(1) of the Second Schedule by adding immediately after paragraph (w) the following: “(x) interest derived by a person from government bonds of not less than three years issued and listed on the Dar es Salaam Stock Exchange from 1st July, 2021.” PART IX AMENDMENT OF THE LOCAL GOVERNMENT AUTHORITIES (RATING) ACT, (CAP. 289) Construction Cap. 289
Part
PART IX
- 27 Verify source ↗
This Part shall be read as one with the Local
AI-assisted research summary: This section says this Part must be read together with the Local Government Authorities (Rating) Act, called the principal Act.
27. This Part shall be read as one with the Local Government Authorities (Rating) Act, hereinafter referred to as the “principal Act”. Amendment of section 3 - 28 Verify source ↗
The principal Act is amended in section 3 in the
AI-assisted research summary: This section changes the definition of “rateable property” for plots with more than one building.
28. The principal Act is amended in section 3 in the definition of the term “rateable property” by deleting paragraph (b)(ii) and substituting for it the following: “(ii) in the case of a plot with more than one building, all buildings in actual occupation in that plot including 12 No. 3 The Finance Act 2021 improvements on, in or under such buildings,” Amendment of section 16 - 29 Verify source ↗
The principal Act is amended in section 16
AI-assisted research summary: 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.
29. The principal Act is amended in section 16- (a) in paragraph (a) of subsection(1), by- (i) deleting the word “ten” appearing in subparagraph (i) and substituting for it the word “twelve”; and (ii) deleting the word “fifty” appearing in subparagraph (ii) and substituting for it the word “sixty”; (b) in paragraph (b) of subsection(1), by- (i) deleting the word “ten” appearing in subparagraph (i) and substituting for it the word “twelve”; and (ii) deleting the word “twenty” appearing in subparagraph (ii) and substituting for it the word “sixty”; (c) by deleting subsection (2A) and substituting for it the following: “(2A) The Minister responsible for finance shall cause fifteen percent of the monies collected under subsection (1) to be remitted to the Ministry responsible for local government authorities.” PART X AMENDMENT OF THE MOTOR VEHICLE (TAX ON REGISTRATION AND TRANSFER) ACT, (CAP. 124) Construction Cap. 124 Amendment of First Schedule
Part
PART X
- 30 Verify source ↗
This Part shall be read as one with the Motor
AI-assisted research summary: This Part is to be read together with the Motor Vehicle (Tax on Registration and Transfer) Act, which is called the principal Act.
30. This Part shall be read as one with the Motor Vehicle (Tax on Registration and Transfer) Act, hereinafter referred to as the “principal Act”. - 31 Verify source ↗
The principal Act is amended in paragraph (3) of
AI-assisted research summary: This provision amends the First Schedule by replacing “ten million” with “five million” in a proviso.
31. The principal Act is amended in paragraph (3) of the First Schedule by deleting the words “ten million” appearing in the proviso and substituting for them the words “five million”. PART XI AMENDMENT OF THE NATIONAL PAYMENT SYSTEMS ACT, (CAP. 437) Construction Cap. 437
Part
PART XI
- 32 Verify source ↗
This Part shall be read as one with the National
AI-assisted research summary: This section says this Part must be read together with the National Payment Systems Act, which it calls the principal Act.
32. This Part shall be read as one with the National 13 No. 3 The Finance Act 2021 Payment Systems Act, hereinafter referred to as “the principal Act”. Addition of section 46A - 33 Verify source ↗
The principal Act
AI-assisted research summary: This provision amends the principal Act by adding a "Money transfer levy" after section 46.
33. The principal Act immediately after section 46 the following: is amended by adding “Money transfer levy - 46A Verify source ↗
(1) There is established a
AI-assisted research summary: 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.
46A.-(1) There is established a levy to be charged on mobile money transfer transaction at a rate ranging from 10 to 10,000 Tanzanian Shillings.” (2) The Minister shall, after consultation with the Minister responsible for communication, make regulations prescribing the manner and modality under which the levy on mobile money transactions may be collected and accounted for.”. transfer PART XII AMENDMENT OF THE NON-CITIZENS (EMPLOYMENT REGULATION) ACT, (CAP. 436) Construction Cap. 436
Part
PART XII
- 34 Verify source ↗
This Part shall be read as one with the Non
AI-assisted research summary: This section says this Part must be read together with the Non-Citizens (Employment Regulation) Act, which it calls the principal Act.
34. This Part shall be read as one with the Non- Citizens (Employment Regulation) Act, hereinafter referred to as “the principal Act”. Amendment of section 16 - 35 Verify source ↗
The principal Act is amended in section 16 by
AI-assisted research summary: 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.
35. The principal Act is amended in section 16 by adding immediately after subsection (2) the following: “(3) A person who fails to submit a return to the Labour Commissioner on or before the prescribed period under subsection (1), shall be liable to a penalty of five hundred thousand shillings for each month or part of a month during which the delay continues.” PART XIII AMENDMENT OF THE PORTS ACT, (CAP. 166) Construction Cap. 166 Amendment of section 67
Part
PART XIII
- 36 Verify source ↗
This Part shall be read as one with the Ports Act,
AI-assisted research summary: This section says this Part must be read together with the Ports Act, which is called the principal Act.
36. This Part shall be read as one with the Ports Act, hereinafter referred to as the “principal Act.” - 37 Verify source ↗
The principal Act is amended in section 67 by
AI-assisted research summary: 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.
37. The principal Act is amended in section 67 by deleting subsection (3) and substituting for it the following: “(3) All funds of the Authority shall be deposited into a bank account opened at the Bank of 14 No. 3 The Finance Act 2021 Tanzania and Authority’s expenditure shall be disbursed according to the approved budget of the Authority and upon approval of the Paymaster General.” PART XIV AMENDMENT OF THE PUBLIC AUDIT ACT, (CAP. 418) Construction Cap. 418
Part
PART XIV
- 38 Verify source ↗
This Part shall be read as one with the Public
AI-assisted research summary: This Part must be read together with the Public Audit Act.
38. This Part shall be read as one with the Public Audit Act, hereinafter referred to as the “principal Act.” Amendment of section 3 - 39 Verify source ↗
The principal Act is amended in section 3 by
AI-assisted research summary: This section defines “public authority” or “body” for the principal Act.
39. The principal Act is amended in section 3 by inserting in its appropriate alphabetical order the following definition: ““Public authority” or “body” means a body of persons, whether or not corporate, established under any written law, whose functions are of public nature and are exercised in furtherance of the public policy, and shall include authority or bodies- (a) which is in receipt of a contribution from, or the operations of which may, under the law or instrument relating thereto, impose or create a liability upon, public funds; (b) where the government controls more than fifty per cent of the shares in that body or authority; (c) whose accounts are, by or under any written law, required to be audited or are open to inspection, by the Controller and Auditor-General; or (d) which has, in any of its financial year, received more than half of its income from public funds.” Amendment of section 38 - 40 Verify source ↗
The principal Act is amended in section 38 by
AI-assisted research summary: 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.
40. The principal Act is amended in section 38 by deleting subsection (3) and substituting for it the following- “(3) The report of the Minister referred to in subsection (2)(b)(i) shall be laid before the National Assembly in its next sitting following submission of the report of the Controller and Auditor General.”. PART XV AMENDMENT OF THE ROAD AND FUEL TOLLS ACT, (CAP. 220) Construction Cap. 220
Part
PART XV
- 41 Verify source ↗
This Part shall be read as one with the Road and
AI-assisted research summary: This section says this Part must be read together with the Road and Fuel Tolls Act, called the principal Act.
41. This Part shall be read as one with the Road and Fuel Tolls Act, hereinafter referred to as the “principal Act”. Amendment of - 42 Verify source ↗
The principal Act is amended in section 4A by
AI-assisted research summary: 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.
42. The principal Act is amended in section 4A by 15 No. 3 The Finance Act 2021 section 4A deleting paragraph (a) and substituting for it the following: “(a) Tanzania shillings 363 per litre imposed on petrol or diesel shall be deposited into the account of the Fund: Provided that, Tanzania shillings 100 per litre imposed on petrol or diesel out of the Tanzania shillings 363 per litre shall be allocated to Tanzania Rural and Urban Roads Agency and the remaining Tanzania shillings 263 per litre shall be distributed amongst the Fund and the Tanzania Rural and Urban Roads Agency in the manner prescribed in the regulations made by in consultation with the Minister responsible for local government.”. the Minister of Amendment Second Schedule - 43 Verify source ↗
The principal Act is amended in the Second
AI-assisted research summary: This section amends the Second Schedule by replacing figure 313 with 413 in items 1 and 2.
43. The principal Act is amended in the Second Schedule by deleting figure “313” appearing in the third column of items 1 and 2 and substituting for it figure “413” respectively. PART XVI AMENDMENT OF THE STAMP DUTY ACT, (CAP. 189) Construction Cap. 189
Part
PART XVI
- 44 Verify source ↗
This Part shall be read as one with the Stamp Duty
AI-assisted research summary: This Part must be read together with the Stamp Duty Act, which is called the principal Act.
44. This Part shall be read as one with the Stamp Duty Act, hereinafter referred to as the “principal Act”. Amendment of Schedule
Part
SCHEDULE
- 1 Verify source ↗
Section 1
AI-assisted research summary: Sets a fee for acknowledgement of a debt based on the debt amount.
1. ACKNOWLEDGEMENT of a debt (a) of an amount not exceeding TShs. 1,000/= (b) of an amount exceeding TShs. 1,000/= Nil Tshs. 2000 - 2 Verify source ↗
Section 2
AI-assisted research summary: 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.
2. ADMINISTRATION BOND: 16 No. 3 The Finance Act 2021 Nil Tshs. 2000 Tshs. 2000 Tshs. 2000 Tshs. 2000 Nil Tshs. 2000 Tshs. 2000 - 5 Verify source ↗
Section 5
AI-assisted research summary: This provision defines several document types and lists exemptions for some affidavits and agreements.
5. (a) where the amount is less than TShs. 1,000/= (b) where the amount is TShs. 1,000/= or more ADOPTION DEED: that is to say any instrument (other than a will) recording an adoption or conferring or purporting to confer an authority to adopt. AFFIDAVIT: Including an affirmation or declaration in the case of person by law allowed to affirm or declare instead of taking oath. Exemptions: (a) Affidavit or declaration in writing when made– (i) for the immediate purpose of being filed or used in any court or before an officer of any court; or (ii) for the sole purpose of enabling any person to receive any pension or charitable allowance. (b) Affidavit made for use before any Commission appointed by the President to hold an Inquiry. (c) Statutory Declaration under section 89 of the Land Registration Act, or any Act amending or substituting that Act. AGREEMENT OR MEMORANDUM OF AGREEMENT: (a) if relating to the sale of a bill of exchange (b) if not otherwise provided for: (i) (ii) (iii) for a sum of money not exceeding TShs. 1,000/= for a sum of money of TShs.1,000/= or more where no sum of money is involved Exemptions: (1) Agreement or memorandum of an agreement– (a) ror or relating to the sale of goods or merchandise exclusively, not being a Note or a Memorandum chargeable under No. 41 (b) made in the form of tenders to the Government for or relating to any loan. (c) being a contract of service required to be made in writing by or under the Employment and Labour Relations Act or the Merchant Shipping Act. (d) made with the Government, the Community or any institution or corporation. to (2) Apprenticeship deed including every writing relating tuition of any the service or apprentice, clerk or servant placed with any trade or learn any profession, master employment. to - 6 Verify source ↗
Section 6
AI-assisted research summary: This section sets duty amounts for instruments about deposit of title deeds, hypothecation, pawn, or pledge.
6. AGREEMENT RELATING TO DEPOSIT OF TITLE DEEDS, HYPOTHECATION, PAWN OR PLEDGE, that is to say, any instrument evidencing an agreement relating to: (1) The deposit of title-deeds of instruments constituting or being evidence of title to any property whatsoever (other than a marketable security). Tshs. 2000 (2) The hypothecation, pawn or pledge of movable 17 No. 3 The Finance Act 2021 Tshs. 2000 Tshs. 2000 Nil Tshs. 2000 Tshs. 10,000 Nil Tshs. 2000 Nil Nil property, where such deposit, hypothecation, pawn or pledge has been made by way of security for the repayment of money advanced or to be advanced by way of loan or for an existing of future debt. - 8 Verify source ↗
Section 8
AI-assisted research summary: 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/=.
8. APPOINTMENT IN EXECUTION OF POWER, whether of trustees or of a property, movable or immovable, where made by any writing not being a will. APPRAISEMENT OR VALUATION, made otherwise than under an order of the Court in the course of a suit: (a) Where the amount is less than TShs. 1,000/= (b) In any other case - 12 Verify source ↗
Section 12
AI-assisted research summary: This section lists several valuations and documents that are exempt under the provision.
12. Exemptions: (a) Appraisement or valuation made for information of one party only, and not being in any manner obligatory between parties either by agreement or operation of Law. (b) Appraisement of crops for the purpose of ascertaining the amount to be given to a landlord as rent. ARTICLES OF ASSOCIATION OF A COMPANY: Exemptions: Articles of any association not formed for profit and registered under the law in force, in Tanzania relating to companies. See also Memorandum of Association of a company (No. 38) AWARD, that is to say, any decision in writing by an arbitrator or umpire, not being an award directing a partition on a reference made otherwise than by an order of the court in the course of a suit: (a) Where the amount or value of the property to which the award relates as set forth in such award is less than TShs.1,000/= (b) In any other case. BILL OF EXCHANGE, not being a bond, bank note or currency note. BILL OF LADING (including a through bill of lading). Exemptions: (a) Bill of lading when the goods therein described are received at a place within the limits of any port within the meaning of the Customs (Management and Tariff) Act, and are to be delivered at another place within the limits of the same port. (b) Bill of lading when executed out of Tanzania and relating to property to be delivered in Tanzania. 18 No. 3 The Finance Act 2021 - 13 Verify source ↗
Section 13
AI-assisted research summary: 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.
13. BILLS OF SALE: (1) ABSOLUTE (2) By way of security (3) By way of collateral security for every sum of TShs. 1,000/= or part thereof secured - 17 Verify source ↗
Section 17
AI-assisted research summary: 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.
17. BOND, not being a Debenture (No. 26), and not being otherwise provided for by this Act or by any Rules of court. See Administration Bond (No. 2), Bottomry Bond (No. 15), Respondentia Bond (No. 54), Security Bond (No. 55). Exemptions: (a) Bond when executed by any person for the purpose of guaranteeing that the local income derived to a from private subscriptions charitable dispensary or hospital or any other object of public utility shall not be less than a specified sum per mensem or annum. Bail Bonds in criminal cases, recognisance to prosecute or give evidence, or recognisance for personal appearance or otherwise issued or taken by the Criminal Procedure Act. the police under (b) BOTTOMRY BOND, that is to say, any instrument whereby the master of a sea-going ship borrows money on the security of the ship to enable him to preserve the ship or prosecute her voyage. CANCELLATION, INSTRUMENT OF, if attested and not otherwise provided for– (a) If the duty with which chargeable does not exceed TShs. 1,000/=. the original was (b) In any other case. See also Release (No. 53), Revocation of Settlement (No. 56(b)), Surrender of Lease (No. 59), Revocation of Trust (No. 63(b)) CERTIFICATE OF SALE (in respect of each property put up as a separate lot and sold) granted to the purchaser of any auction by a Civil Court. 19 - 0 Verify source ↗
5 percent for the
AI-assisted research summary: This provision lists several monetary rates and caps, including percentages and fixed amounts in Tanzanian shillings.
0.5 percent for the first TShs. 100,000/= then 1 percent of value in excess of TShs. 100,000/= 1 percent of the value to a maximum of TShs. 10,000/= 1 percent not exceeding TShs. 1,000/= 1 percent of the base value of the bond 1 percent of the value of the bond but not exceeding TShs. 10,000/= Tshs. 2000 - 0 Verify source ↗
5 percent for the
AI-assisted research summary: A rate of 0.5% applies to the first TShs. 100,000, and 1% applies to amounts above TShs. 100,000.
0.5 percent for the first TShs. 100,000/=, then 1 percent for value in excess of TShs. No. 3 The Finance Act 2021 100,000/= Tshs. 2000 Tshs. 2000 Tshs. 100 Tshs. 2000 NIL - 0 Verify source ↗
5 percent for the
AI-assisted research summary: A 0.5% rate applies to the first TShs. 100,000, and 1% applies to value above TShs. 100,000.
0.5 percent for the first TShs. 100,000, then 1 percent for value in excess of TShs. 100,000/= - 22 Verify source ↗
Section 22
AI-assisted research summary: This section defines several document types and sets stamp duty amounts and exemptions for certain conveyances.
22. CERTIFICATE OR OTHER DOCUMENT evidencing the right or title of the holder, or any other person, either to any shares, scrip or stock in or of any incorporated company or other body corporate, or to become proprietor of shares, scrip or stock in or of any such company or body. See also Letter of Allotment of Shares (No. 35). CHARTER PARTY, that is to say, any instrument (except an agreement for the hire of a tug steamer) whereby a vessel or some specified principal part thereof is let for the specified purposes of the charterer whether it includes a penalty clause or not. CHEQUE. COMPOSITION DEED, that is to say, any instrument executed by a debtor whereby he conveys his property for the benefit of his creditors, or whereby payment of a composition or dividend on their debts is secured to the creditors, or whereby provision is made for the continuance of the debtor's business, under the supervision of inspectors or under letters of licence, for the benefit of his creditors, or a Deed of Agreement under the Deeds of Arrangements Act. CONVEYANCE, not being a transfer charged or exempted under No. 60: (a) Where the amount or value of the consideration for such conveyance does not exceed TShs. 20,000/= (b) Where the amount exceeds TShs. 20,000/=: Provided that in any case where an agreement for sale is stamped with the ad valorem duty required for a conveyance, and a conveyance in pursuance of such agreement is subsequently executed, the duty on such conveyance shall be reduced by the amount of the duty paid on such agreement, but shall not be less than TShs. 1,000/=: Provided also that in the case of a decree or order, for or having the effect of an order for foreclosure, the ad valorem Stamp Duty upon any such decree or order shall not exceed the duty on a sum equal to the value of the property to which the decree or order relates, and where the decree or order states that value, that statement shall be conclusive for the purpose of determining the amount of the duty, and where ad valorem Stamp Duty is paid upon such decree or order, shall be dutiable with TShs. 20 No. 3 The Finance Act 2021 500/=, under the provisions of section 6 of this Act: And provided also that the duty on a conveyance by the liquidator of a company in liquidation of property forming part of the assets of the company to a shareholder in the course of the dissolution of the company shall be TShs. 1,000/= (c) for conveyance of agricultural land TShs.500/= “Exemptions: (a) Conveyance of any property under the Administrator General (Powers and Functions) Act to a trustee, heir or beneficiary if falling under Article 60 (e); (b) Conveyance of any property under the Export Processing Zones and the Special Economic Zones; (c) Conveyance on the transfer of the assets to the Special Purposes Vehicles (SPV) for the purpose of issuing asset backed securities. This exemption shall be limited to construction of transport infrastructures and utilities projects.” - 23 Verify source ↗
Section 23
AI-assisted research summary: This section sets a TShs. 2,000 fee for certified copies or extracts, with listed exemptions.
23. COPY OF EXTRACT certified to be a true copy or extract by or by order of any public officer: (a) If the original was not chargeable with duty or if the duty with which it was chargeable does not exceed TShs. 1,000/=. (b) In any other case. TShs.2000/= TShs.2000/= Exemptions: (a) Copy of any paper which a public officer is expressly required by law to make or furnish for record purposes. (b) Copy of, or extract from, any register relating to births, baptisms, marriages, divorces, deaths or burials. (c) Copy of, or extract from, any proceedings of a court. - 24 Verify source ↗
Section 24
AI-assisted research summary: This section lists duty amounts for certain instruments and sets out exemptions for some duplicates, contracts of service, and certain debentures.
24. COUNTERPART OR DUPLICATE of any instrument chargeable with duty and in respect of which the proper duty has been paid– (a) If the duty with which the original instrument is chargeable does not exceed TShs. 1,000/=. (b) In any other case. TShs. 2000/= TShs. 2000/= Exemptions: (a) Counterpart or duplicate prepared and executed solely for purposes of filing and record in the 21 No. 3 The Finance Act 2021 Land Registry, the Registry of Documents or the Mining Registry. (b) Duplicate or copy of any Contract of Service made under the provisions of the Employment and Labour Relations Act CUSTOMS BOND: (a) TShs.9,999/=. Where the amount does not exceed (b) In any other case. DEBENTURE: Explanation - The term "debenture" includes any interest coupons attached thereto, but the amount of such coupons shall not be included in estimating the duty. (a) If transferable by endorsement or by separate instrument of transfer. (b) If transferable by delivery. Exemptions: A debenture issued to an incorporated company or other body corporate in terms of a registered mortgage deed duly stamped in respect of the full amount of debentures to be issued thereunder, whereby the company or body borrowing makes over, in whole or in part, their property to trustees for the benefit of the debenture holders. See also Bond (No. 14) and section 66 DEED POLL if attested and not otherwise provided for. DELIVERY ORDER IN RESPECT OF GOODS, that is to say, any instrument entitling any person therein named, or his assigns or the holder thereof, to the delivery of any goods lying in any dock or port, or in any warehouse in which goods are stored or deposited on rent or hire or upon any wharf, such instrument being signed by or on behalf of the owner of such goods upon the sale or transfer of the property therein. DIVORCE, INSTRUMENT OF, that is to say, any instrument by which any person effects the dissolution of his marriage. - 30 Verify source ↗
Section 30
AI-assisted research summary: 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.
30. EXCHANGE OF PROPERTY, instrument of. TShs.2000/= TShs. 40 per 1,000, the maximum should not exceed Tshs. 5000/= The same duty as a Mortgage (No.39) for the same amount. The same duty as a Share Warrant (No.57) Tshs. 2000 Nil Tshs. 2000 - 0 Verify source ↗
5 percent for the
AI-assisted research summary: A 0.5% rate applies to the first TShs. 100,000, and 1% applies to value above TShs. 100,000.
0.5 percent for the first TShs. 100,000/=, then 1 percent of value in excess of TShs. 100,000/= 22 No. 3 The Finance Act 2021 - 36 Verify source ↗
Section 36
AI-assisted research summary: The section defines several instrument types, exempts certain indemnity bonds, and sets a charge of 1% with a maximum of TShs. 10,000.
36. FURTHER CHARGE, instrument of, that is to say, any instrument imposing a further charge on mortgaged property. GIFT, instrument of, not being a Settlement (No. 56) or Will or Transfer (No. 60). INDEMNITY BOND. Exemptions: Indemnity Bonds given to the Government or any corporation or institution. 1 percent of the instrument with a maximum of TShs. 10,000/= - 0 Verify source ↗
5 percent for the
AI-assisted research summary: 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.
0.5 percent for the first TShs. 100,000/=, then 1 percent of value in excess of TShs. 100,000/= Tshs. 2000 LEASE, including an under-lease or sublease and any agreement to let or sublet: Where by such lease the rent is fixed and no premium is paid or delivered– (i) where the lease purports to be for a 1 percent of the annual reserved rent for lease of all durations term of less than one year. (ii) where the lease purports to be for a term of not less than one year but not more than three years. (iii) where the lease does not purport to be for any definite term. (iv) where the lease purports to be in perpetuity. (b) Where the lease is granted for a fine or premium or for money advanced and where no rent is reserved. (c) Where the lease is granted for a fine or premium or for money advanced in addition to rent reserved Exemptions: (a) Claims issued under the Mining Act and regulations made thereunder. (b) Hypothecation or lease of any movable or immovable property as provided under the Export Processing Zones Act LETTER OF ALLOTMENT OF SHARES in a company, a proposed company, or in respect of any loan to be raised by any company or proposed company. See also Certificate or other Document (No. 18). Tshs. 2000 LETTER OF CREDIT, that is to say, any instrument by which one person authorises another to give credit to the person in whose favour it is drawn. Tshs. 2000 23 No. 3 The Finance Act 2021 - 42 Verify source ↗
Section 42
AI-assisted research summary: Section 42 lists stamp duty amounts and exemptions for several instruments, including company memoranda, mortgage deeds, notarial acts, broker notes, and ship protest notes.
42. LETTER OF LICENCE, that is to say, any agreement between a debtor and his creditors that the latter shall for a specified time suspend their claims and allow the debtor to carry on business at his own discretion. Tshs. 2000 MEMORANDUM OF ASSOCIATION OF A COMPANY: (a) If accompanied by articles of association under the law in force in Tanzania relating to companies. (b) If not so accompanied. Exemptions: Memorandum of any Association not formed for profit and registered under the law in force in Tanzania relating to companies. MORTGAGE-DEED, not being an agreement relating to Deposit of Title Deeds, Hypothecation, Pawn or Pledge (No. 6), Bottomry Bond (No. 15), Respondentia Bond (No. 54), or Security Bond (No. 55): (a) Where the TShs.1,000/=. amount does not exceed (b) Where a certified auxiliary or additional or substituted security or by way of further assurance for the abovementioned purpose where the principal or primary security is duly stamped for every sum of Shs. 1,000/= or part thereof secured. “Exemption:- A mortage bond as provided under the Export Processing Zones Act” NOTARIAL ACT, that is to say, any instrument, endorsement, note, attestation certificate or entry not being a Protest (No. 48) made or signed by a Notary Public in the execution of the duties of his office or by any other person lawfully acting as a Notary Public. NOTE OR MEMORANDUM, sent by a Broker or Agent to his Principal intimating the purchase or sale on account of such Principal. Tshs. 10,000 Tshs. 10,000 1 percent of instrument, not exceeding a maximum of TShs. 10,000/= 1 percent of instrument, not exceeding a maximum of TShs 10,000/= Tshs. 2000 Nil NOTE OF PROTEST BY THE MASTER OF A SHIP. See also Protest by the Master of a Ship (No. 49). Tshs. 2000 24 No. 3 The Finance Act 2021 - 45 Verify source ↗
Section 45
AI-assisted research summary: This section sets stamp duty rules and rates for partition, partnership, and certain insurance policies, including reductions, minimum duty, exemptions, and amount-based brackets.
45. PARTITION, instrument of. Note: The largest share remaining after the property is partitioned (or if there are two or more shares of equal value and not smaller than any of the other share then one such equal shares) shall be deemed to be that from which the other shares are separated: Provided always that– (a) When an instrument of partition containing an agreement to divide property is effected in pursuance of such agreement, the duty chargeable upon the instrument effecting such partition shall be reduced by the amount of a duty paid in respect of the first instrument but shall not be less than one shilling. (b) Where a final order for effecting a partition passed by any Civil Court, or an award by an arbitrator directing a partition is stamped with a stamp required for an instrument of partition, and an instrument of partition in pursuance of such order or award is subsequently executed, the duty on such instrument shall be reduced by the amount of the duty paid in respect of the first instrument but shall not be less than one shilling. PARTNERSHIP: A. Instrument of: (i) Where the capital does not exceed TShs. 10,000/=. (ii) Where the capital exceeds TShs. 100,000/= but does not exceed TShs. 1,000,000/=. (iii) In any other case Dissolution. B. Exemptions: This does not include an assignment by a partner of his share and interest in the firm in consideration of a payment or his release from liabilities of the firm, or both, by his copartners. This is dutiable as a Conveyance (No. 22). POLICY OF INSURANCE: A. Sea Insurance: (1) For or upon any voyage– (i) Where the premium or consideration does not exceed the rate of one-eighth per centum of the amount insured by the policy. (ii) In any other case, in respect of every full sum of TShs. 10,000/= and also any fractional part of TShs. 10,000/= insured by the policy. For time– In respect of every sum of Shs. 5,000/= and also any fractional part of TShs. 5,000/= insured by the policy (2) (i) 25 - 0 Verify source ↗
25 percent for the
AI-assisted research summary: This text appears to set stamp duty rates and related exemptions for certain insurance policies.
0.25 percent for the first TShs. 100,000/= then 1 percent of TShs. 100,000/= TShs.1,000/= TShs.5000/= TShs.10,000/= TShs.10,000/= Nil Nil Nil No. 3 The Finance Act 2021 Nil Nil Nil Nil (ii) where the insurance shall be made for any time exceeding six months and not exceeding 12 months B. Policy of Insurance against railway or air accident valid for a single journey only. C. Life Insurance– For every sum insured not exceeding TShs. 5,000/= or part thereof insured in excess of TShs. 5,000/=. D. Any valid Policy of Insurance not specifically provided for (including any re-insurance by an insurance company with another company by way of indemnity or guarantee against the payment on the original insurance of a certain part of the sum insured thereby). General Exemption: Letter of cover or engagement to issue a policy of insurance: Provided that unless such letter or engagement bears the stamp prescribed by this Act for such policy, nothing shall be claimable thereunder, nor shall it be available for any purpose, except to compel the delivery of the policy therein mentioned. POWER OF ATTORNEY, not being a Proxy (No. 50):
Part
part of the sum insured thereby).
- 46 Verify source ↗
Section 46
AI-assisted research summary: Section 46 lists a TShs. 2000 fee for several kinds of authorisations and states exemptions for certain bank and corporate authorisations.
46. TShs. 2000/= TShs. 2000/= TShs. 2000/= TShs. 2000/= TShs. 2000/= TShs. 2000/= (a) When executed for the sole purpose of procuring the registration of one or more documents in relation to a single transaction or for admitting execution of one or more such documents. (b) When authorising one person or more to act in a single transaction other than the case mentioned in clause (a). (c) When authorising more than five but not more than ten persons to act jointly and severally in more than one transaction or generally. (d) When given for consideration and authorising the attorney to sell any immovable property. (e) In any other case. (f) Revocation of. Exemptions: Authorisation on a bank permitting one or more persons to conduct ordinary banking business on account of another or others or a resolution whereby an incorporated company or other body corporate authorises its director or directors, servant or servants similarly to conduct such business. 26 No. 3 The Finance Act 2021 Explanation. - For the purposes of this Article two or more persons who are members of the same firm shall be deemed to be one person. - 50 Verify source ↗
Section 50
AI-assisted research summary: This section defines certain documents and shows the duty payable for some of them, including a proxy and a receipt below a stated amount.
50. PROTEST OF BILL OR NOTE, that is to say, any declaration in writing made by a Notary Public or other person lawfully acting as such, attestg the dishonour of a bill of exchange or promissory note. PROTEST BY THE MASTER OF A SHIP, that is to say, any declaration of the particulars of her voyage drawn up by him with a view to the adjustment of losses or the calculation of averages, and every declaration in writing made by him against the charterers or consignees for not loading or unloading the ship when such declaration is attested or certified by a Notary Public or other person lawfully acting as such. See also Note of Protest by the Master of a Ship (No. 42). PROXY empowering any person to vote at any one election of the Members of a district or local board or of a body of Municipal Commissioners, or at any one meeting of: (a) members of an incorporated company or other body corporate whose stock or funds is or are divided into shares and transferable; (b) a local authority; or (c) proprietors, members or contributors to the funds of any institution. Nil Nil Tshs. 2000 Nil Nil Nil Note: A proxy giving power to demand a poll and vote thereat is dutiable as a Power of Attorney (No. 46). RECEIPT for any money or other property: (a) For an amount not exceeding TShs. 1,000/=. Nil - 51 Verify source ↗
Section 51
AI-assisted research summary: An amount exceeding TShs. 1,000/= is subject to 1 percent.
51. (b) For an amount exceeding TShs. 1,000/=. 1 percent - 0 Verify source ↗
5 percent of total
AI-assisted research summary: 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.
0.5 percent of total value of margins being the difference between selling and buying (c) for bureau de change Exemptions: Receipt– endorsed on or contained in any instrument duly stamped or exempted under the proviso to section 5 (instruments executed on behalf of the Government) acknowledging the receipt of the consideration money therein expressed, or the receipt of any principal money, interest or annuity or other periodical payment thereby secured; (a) for any payment of money without consideration; (b) given by any member of the Defence Forces, or his 27 No. 3 The Finance Act 2021 representative, for or on account of any pay, pension, gratuity or allowance; (c) given for or on account of any salary, pay, or wages, or for or on account of any other like payment made to or for the account or benefit of any person, being the holder of an office or an employee, in respect of his office or employment, or for or on account of any respect money pension, paid compassionate allowance, superannuation allowance, or other like allowance; of in (d) given for money or securities for money deposited in the hands of a Bank or any banker, to be accounted for: Provided that the same is not expressed to be received of, or by, the hands of any other than the person to whom the same is to be accounted for: Provided also that this exemption shall not extend to a receipt or acknowledgement for any sum paid or deposited for or upon a letter of allotment of a share, or in respect of a call upon any stock or share of, or in, any incorporated company or other body corporate or such proposed or intended company or body or in respect of a debenture being a marketable security; (e) given by the Government; (f) by any person or body of persons, registered under Part IV of the VAT Act, Cap 148 from the imposition date of VAT; (g) for selling agricultural products by a farmer, a farmers' association, a co-operative society or cooperative union; (h) issued to acknowledge payment of fees to all farmers, Colleges and Training Institutions; (i) for proceeds of game of chance; (j) for rental income; (k) for selling fish by fishermen; (l) for business income.
Part
Part IV of the VAT Act, Cap 148 from the
- 52 Verify source ↗
Section 52
AI-assisted research summary: 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.
52. RECONVEYANCE OF MORTGAGED PROPERTY OR RELEASE OR DISCHARGE OF ANY MORTGAGE OR CHARGE. 1 percent of mortgage value but duty not exceeding TShs. 1,000/= 28 No. 3 The Finance Act 2021 - 57 Verify source ↗
Section 57
AI-assisted research summary: This section defines “release” and “respondentia bond.”
57. RELEASE, that is to say, any instrument not being a release or discharge charged under article 52 or such release as is provided for by section 33 whereby a person renounces a claim upon another person or against any specified property. RESPONDENTIA BOND, that is to say, any instrument securing a loan on the cargo laden or to be laden on board of a ship and making repayment contingent on the arrival of the cargo at the port of destination. - 0 Verify source ↗
25 percent for
AI-assisted research summary: The rate is 0.25% for the first TShs. 100,000 and 1% for value above TShs. 100,000.
0.25 percent for the first TShs. 100,000/=, then 1 percent of value in excess of TShs. 100,000/= - 0 Verify source ↗
5 percent of the
AI-assisted research summary: The provision sets stamp duty amounts for security bonds, mortgage deeds, and settlement instruments, with caps and some exemptions.
0.5 percent of the mortgage value, total duty not exceeding Tshs.10,000/= SECURITY BOND OR MORTGAGE DEED Executed by way of security for the due execution of an office, or to account for money or other property received by virtue thereof or executed by a surety to secure the due performance of a contract– (a) when the amount secured does not exceed TShs. 2,000/=; (b) in any other case. General Exemptions: Bond or other instrument, when executed– (a) by any person for the purposes of guaranteeing that the local income derived from private subscriptions to a charitable dispensary or hospital or any other object of public utility shall not be less than a specified sum per mensem or annum; (b) executed by Officers of Government or their sureties to secure the due execution of an Office or the due accounting for money or other property received by virtue thereof. 1 percent of mortgage value, duty not exceeding TShs. 10,000/= TShs. 1,000/= SETTLEMENT: A: Instrument of (including a deed of dower). Exemptions: Deed of dower executed on the occasion of a marriage between Mohammedans. B: Revocation of. See also Trust (No. 63). - 0 Verify source ↗
25 percent for the
AI-assisted research summary: 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.
0.25 percent for the first TShs. 100,000/=, then 1 percent of value in excess of TShs. 100,000/= SHARE WARRANTS to bearer issued under any written law relating to companies. Exemptions: Share warrant when issued by a company under the law in force in Tanzania relating to companies, to have effect only upon payment, as composition for the duty of– - 0 Verify source ↗
17 percent for the
AI-assisted research summary: 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.
0.17 percent for the first TShs. 100,000/=, then 1.3 percent of value in excess of TShs. 100,000/= 29 No. 3 The Finance Act 2021 (a) three-quarters per centum of the whole subscribed capital of the company; or (b) if any company which has paid the said duty or composition in full, subsequently issues an addition to its subscribed capital, three-quarters per centum of the additional capital so issued. SHIPPING ORDER for or relating to the conveyance of goods on board of any vessel. - 59 Verify source ↗
Section 59
AI-assisted research summary: Surrender of lease may be exempt from duty in some cases, including where the lease itself is already exempted from duty.
59. SURRENDER OF LEASE: Nil (1) without consideration– (a) when the duty with which the lease is TShs. 1,000/= chargeable does not exceed TShs. 20,000; (b) in any other case. (2) with consideration. Exemptions: Surrender of lease, when such lease is exempted from duty. - 60 Verify source ↗
Section 60
AI-assisted research summary: 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.
60. TRANSFER (whether with or without consideration)– (a) of shares in an incorporated company or other body corporate; (b) of debentures whether the debenture is liable to duty or not; (c) of any interest secured by a bond, mortgage-deed or policy of insurance– (1) if the duty on such bond, mortgage-deed or policy does not exceed ten shillings; (2) in any other case; (d) of any trust-property without consideration from one trustee to another trustee or from a trustee to a beneficiary; (e) of any property under the Administrator General (Powers and Functions) Act * to a trustee, heir or beneficiary: Provided that in any case where an agreement for sale is stamped with the ad valorem duty required for a transfer, and a transfer in pursuance of such agreement 30 TShs. 1,000/= The same duty as a Conveyance (No. 22) for the amount of the consideration in addition to the chargeable duty under paragraph (1)(a) or (b) of this Article. 1 percent of the value of the shares approved by the Board 1 percent of the value of the shares approved by the Board 1 percent of the value of the shares approved by the Board TShs. 1,000/= Nil Nil No. 3 The Finance Act 2021 is subsequently executed, the duty on such transfer shall be reduced by the amount of the duty paid on such agreement, but shall not be less than one shilling: Provided also that the duty on a transfer by the liquidator of a company in liquidation of property forming part of the assets of the company to a share- holder in the course of the dissolution of the company shall be ten shillings. Exemptions: of shares; Transfer by sale- (a) (b) of other financial securities, by companies listed by the Dar es Salaam Stock Exchange. Transfers by endorsement– (1) of a bill of exchange, cheque or promissory note; (2) of a bill of lading, delivery order, warrant for goods, or other mercantile document of title of goods; (3) of a policy of insurance. - 61 Verify source ↗
Section 61
AI-assisted research summary: A lease transfer is to be done by assignment, not by under-lease.
61. TRANSFER OF LEASE by way of assignment and not by way of under-lease. - 0 Verify source ↗
5 percent for the
AI-assisted research summary: Sets a 0.5% charge on the first TShs. 100,000, then 1% on value above TShs. 100,000.
0.5 percent for the first TShs. 100,000/=, then 1 percent of value in excess of TShs. 100,000/= - 62 Verify source ↗
Section 62
AI-assisted research summary: The section sets duty amounts for tribute agreements involving claims and mining leases, including rates based on production value, profits, or rent.
62. TRIBUTE AGREEMENTS: (a) With respect to claims- (i) where the holder reserves a proportion of the value of production, for every one-hundredth part of such value reserved, or fraction of such one hundredth part, in respect of each claim. (ii) where the holder reserves a proportion of the profits of working, for every one hundredth part of the amount of the profit reserved, or fraction of such one hundredth part in respect of each claim. (b) With respect to mining lease- Tshs 500/= Tshs 500/= (i) where the holder reserves a proportion of the value of production, for every one- hundredth part of the value reserved, or fraction of such one- hundredth part in respect of each claim; (ii) where the holder reserves a proportion of the profits of the working, for every one- hundredth part of the amount of the profits reserved, or fraction of such one- hundredth part. (c) Where, in any such agreement, the consideration 31 Tshs.1000/= for each acre contained in the lease Tshs.1,000 for each acre contained in the lease No. 3 The Finance Act 2021 or part thereof is specified in terms of rent. The same duty as a lease in addition to the duty (if any) payable under (a) or (b) 63 TRUST: A. Declaration of, or concerning any property when made by any writing not being a will. 1 percent of the amount of value of the property concerned with the not maximum exceeding TShs. 1,000/= 1 percent of the amount of value of property the concerned with the not maximum exceeding TShs. 1,000/= B. Revocation of, or concerning any property when made by any instrument other than a will. See also Settlement (No. 56)
Part
part of the amount of the profits reserved, or
- 64 Verify source ↗
WARRANT FOR GOODS, that is to say, any instrument
AI-assisted research summary: This provision defines “warrant for goods” and excludes wills and similar testamentary instruments.
64. WARRANT FOR GOODS, that is to say, any instrument Nil evidencing the title of any person therein named, or his assigns, or the holder thereof, to the property in any goods lying in or upon any dock, warehouse or wharf, such instrument being signed or certified by or on behalf of the person in whose custody such goods may be. ANY INSTRUMENT (if attested) not otherwise provided for. Exemptions: Wills, codicils of wills, or other testamentary instruments - 65 Verify source ↗
Section 65
AI-assisted research summary: This text appears to be an amendment heading and a Tshs. 2000 amount, but it does not state a clear rule by itself.
65. Tshs. 2000 ” PART XVII AMENDMENT OF THE TANZANIA COMMUNICATIONS REGULATORY AUTHORITY ACT, (CAP. 172) Construction Cap. 172
Part
PART XVII
- 46 Verify source ↗
This Part shall be read as one with the Tanzania
AI-assisted research summary: This Part must be read together with the Tanzania Communications Regulatory Authority Act, which is called the principal Act.
46. This Part shall be read as one with the Tanzania Communications Regulatory Authority Act, hereinafter referred to as the “principal Act”. Amendment of section 49 - 47 Verify source ↗
The principal Act is amended in section 49, by
AI-assisted research summary: The Authority must deposit all its funds into a bank account at the Bank of Tanzania.
47. The principal Act is amended in section 49, by adding immediately after subsection (7) the following: “(8) All funds of the Authority shall be deposited into a bank account opened at the Bank of Tanzania and Authority’s 32 No. 3 The Finance Act 2021 expenditure shall be disbursed according to the approved budget of the Authority and upon approval of the Paymaster General.” PART XVIII AMENDMENT OF THE TANZANIA SHIPPING AGENCIES ACT, (CAP. 415) Construction Cap. 415
Part
PART XVIII
- 48 Verify source ↗
This Part shall be read as one with the Tanzania
AI-assisted research summary: This Part must be read together with the Tanzania Shipping Agencies Act, which is called the principal Act.
48. This Part shall be read as one with the Tanzania Shipping Agencies Act, hereinafter referred to as the “principal Act”. Amendment of section 35 - 49 Verify source ↗
The principal Act is amended in section 35(2) by
AI-assisted research summary: 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.
49. The principal Act is amended in section 35(2) by deleting the words “the bank account of the Corporation” and substituting for them the words “a bank account opened at the Bank of Tanzania and the Corporation’s expenditure shall be disbursed according to the budget of the Corporation and upon approval of the Paymaster General.” PART XIX AMENDMENT OF THE TAX ADMINISTRATION ACT, (CAP. 438) Construction Cap. 438
Part
PART XIX
- 50 Verify source ↗
This Part shall be read as one with the Tax
AI-assisted research summary: This provision says this Part must be read together with the Tax Administration Act.
50. This Part shall be read as one with the Tax Administration Act, hereinafter referred to as the “principal Act”. Amendment of section 22 - 51 Verify source ↗
The principal Act is amended in section 22, by
AI-assisted research summary: 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.
51. The principal Act is amended in section 22, by deleting subsection (1) and substituting for it the following: “(1) A person who becomes potentially liable to tax by reason of carrying a business, investment or employment shall apply for a Taxpayer Identification Number within the date of commencing the business, investment or employment.”. fifteen days from Amendment of section 28A - 52 Verify source ↗
The principal Act is amended in section 28A(1) by
AI-assisted research summary: Section 28A(1) is amended by replacing “taxpayer” with “person”.
52. The principal Act is amended in section 28A(1) by deleting the word “taxpayer” and substituting for it the word “person”. Amendment of section 28B - 53 Verify source ↗
The principal Act is amended in section 28B
AI-assisted research summary: This section amends section 28B of the principal Act.
53. The principal Act is amended in section 28B- (a) immediately in subsection (1), by adding the words “and experience” the word “knowledge”; in subsection “deliberations and”; (3), by deleting the words after (b) (c) by deleting subsection (4); and Amendment of section 28C - 54 Verify source ↗
The principal Act is amended in section 28C by
AI-assisted research summary: This section changes section 28C by replacing “resolving” with “handling” in paragraphs (b) and (c).
54. The principal Act is amended in section 28C by 33 No. 3 The Finance Act 2021 deleting the word “resolving” appearing in paragraphs (b) and (c) and substituting for it the word “handling”. Amendment of section 28D - 55 Verify source ↗
The principal Act is amended in section 28D by
AI-assisted research summary: The Act changes section 28D by replacing paragraph (c) with “tax decision or objection decision.”
55. The principal Act is amended in section 28D by deleting paragraph (c) and substituting for it the following: “(c) tax decision or objection decision”. Amendment of section 29 - 56 Verify source ↗
The principal Act is amended in section 29 by
AI-assisted research summary: A taxpayer who must file an official translation under subsection (1) must submit it within the time set under section 44.
56. The principal Act is amended in section 29 by adding immediately after subsection (2) the following: “(3) Where a taxpayer is required to submit an official translation of communication or document under subsection (1), the taxpayer shall submit the official translation within the time prescribed under section 44.”. Amendment of section 35 - 57 Verify source ↗
The principal Act is amended in section 35 by
AI-assisted research summary: Certain liable persons must keep a primary data server in the United Republic and make it accessible to the Commissioner General for tax administration.
57. The principal Act is amended in section 35 by adding immediately after subsection (6) the following: “(7) Every liable person who taxable or maintains documents in electronic form, shall maintain in the United Republic a primary data server for storage of documents in electronic form. (8) The server referred to under subsection (7) shall be accessible by the Commissioner General for purposes of tax administration in the manner and time prescribed under section 42. (9) For the purpose of this section, “primary data server” means a server which stores data that is created or collected by a taxable or liable person in the ordinary course of business. (10) The requirements of subsections (7), (8) and (9) shall come into effect twelve months from 1st July, 2021.”. Amendment of section 39 - 58 Verify source ↗
The principal Act is amended in section 39 by
AI-assisted research summary: The principal Act is amended by replacing the word “within” in section 39(2) with “not less than”.
58. The principal Act is amended in section 39 by deleting the word “within” appearing in subsection (2) and substituting for it the words “not less than”. Amendment of section 44 - 59 Verify source ↗
The principal Act is amended in section 44(1) by
AI-assisted research summary: This provision amends section 44(1) of the principal Act by replacing “who is” with “whether or”.
59. The principal Act is amended in section 44(1) by deleting the words “who is” and substituting for them the words “whether or”. Amendment of section 51 - 60 Verify source ↗
The principal Act is amended in section 51(7) by
AI-assisted research summary: This provision changes the wording of section 51(7) of the principal Act about objections to tax decisions.
60. The principal Act is amended in section 51(7) by deleting the phrase “An objection to any tax decision” and substituting for it the phrase “Notwithstanding subsection (1), an objection to a tax decision on assessment or notice of liability to pay tax”. 34 No. 3 The Finance Act 2021 Amendment of section 56 - 61 Verify source ↗
The principal Act is amended in section 56
AI-assisted research summary: 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).
61. The principal Act is amended in section 56- (a) in subsection (1) by- (i) adding immediately after paragraph (c) the following: “(d) in the case of property rate, at the time of payment for electricity: “Provided that, the property rate in respect of rateable properties not connected with electricity, shall be paid in accordance with subsection (1)(a), (b) or (c) of this section.” renaming paragraph (d) as paragraph (e); (b) by adding immediately after subsection (2) a (ii) proviso as follows: “Provided that, the requirements of this subsection shall not apply to a taxpayer who pays property rate under subsection (1)(d).” Amendment of section 70 - 62 Verify source ↗
The principal Act is emended in section 70, by
AI-assisted research summary: This section amends section 70 of the principal Act by renumbering the content of subsection (1) as section 70 and deleting subsection (2).
62. The principal Act is emended in section 70, by- (a) designating the content of subsection (1) as section 70; and (b) deleting subsection (2). Amendment of section 74 Amendment of section 79 - 63 Verify source ↗
The principal Act is amended in section 74 by
AI-assisted research summary: Section 74 of the principal Act is amended to add the words “or tax” in subsection (1).
63. The principal Act is amended in section 74 by inserting the words “or tax” between the words “duty” and “has been” appearing in subsection (1). - 64 Verify source ↗
The principal Act is amended in section 79
AI-assisted research summary: This section amends section 79 to add a rule about controlled transactions and a penalty of 100 percent of the tax shortfall for contravention.
64. The principal Act is amended in section 79- in subsection (1), by adding immediately after (a) paragraph (b) the following: “(c) entered into controlled transactions or series of controlled transactions and fails to determine the income and expenditure resulting from the transaction in a manner that is inconsistent with arms length principle; and in subsection (2), by adding immediately after (b) paragraph (b) the following: for a person who has contravened “(c) subsection (1)(c), one hundred percent of the tax shortfall. - 65 Verify source ↗
The principal Act is amended in section 85(3), by
AI-assisted research summary: This section amends section 85(3) of the principal Act and repeals section 92A.
65. The principal Act is amended in section 85(3), by- (a) inserting immediately after paragraph (k) the following: “(l) failure to produce official translation of the 35 Amendment of section 85 No. 3 The Finance Act 2021 communication or document which is in a language other than official language; (m) failure to maintain a primary data server in the United Republic as required by section 35;”; and renaming paragraphs (l) and (m) as paragraphs (n) and (o) respectively. (b) Repeal of section 92A - 66 Verify source ↗
The principal Act is amended by repealing section
AI-assisted research summary: The principal Act is amended by repealing a section relating to the Third Schedule.
66. The principal Act is amended by repealing section Amendment of Third Schedule - 67 Verify source ↗
The principal Act is amended in the Third Schedule
AI-assisted research summary: The Third Schedule is amended to add a new row about employee registration.
67. The principal Act is amended in the Third Schedule by adding immediately after the last row the following: “ INSTITUTIONS Workers Compensation Fund PURPOSE OF TRANSACTION Employee’s registration Occupational Safety and Health Authority Government, Company or individual Employee’s registration Employment ” PART XX AMENDMENT OF THE TANZANIA REVENUE AUTHORITY ACT, (CAP. 399) Construction Cap. 399
Part
PART XX
- 68 Verify source ↗
This Part shall be read as one with the Tanzania
AI-assisted research summary: This Part must be read together with the Tanzania Revenue Authority Act, which is called the principal Act.
68. This Part shall be read as one with the Tanzania Revenue Authority Act, hereinafter referred to as “the principal Act”. Amendment of section 10 - 69 Verify source ↗
The principal Act is amended in section 10(1), by
AI-assisted research summary: This section amends section 10(1) of the principal Act by replacing one paragraph, deleting another, and renumbering a paragraph.
69. The principal Act is amended in section 10(1), by- (a) deleting paragraph (b) and substituting for it the following: “(b) two representatives from the Ministry responsible for finance in the Government of the United Republic to be appointed by the Minister, one responsible for national policy and another responsible for national planning”; (b) deleting paragraph (f); and (c) renaming paragraph (g) as paragraph (f). 36 No. 3 The Finance Act 2021 PART XXI AMENDMENT OF THE TAX REVENUE APPEALS ACT, (CAP. 408) Construction Cap. 408 Amendment of section 22
Part
PART XXI
- 70 Verify source ↗
This Part shall be read as one with the Tax Revenue
AI-assisted research summary: This Part must be read together with the Tax Revenue Appeals Act, which is called the principal Act.
70. This Part shall be read as one with the Tax Revenue Appeals Act, hereinafter referred to as the “principal Act”. - 71 Verify source ↗
The principal Act is amended in section 22 by
AI-assisted research summary: 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.
71. The principal Act is amended in section 22 by adding immediately after subsection (6) the following: “(7) A party to an appeal may, at any stage of the proceedings before the judgement is delivered by the Board or Tribunal as the case may be, apply for the appeal to be settled amicably through mediation. (8) For purposes of subsection (7), the Board or Tribunal shall- (a) require the parties to report the outcome of the mediation within a specified time and the Board or Tribunal shall issue a final order with respect to such mediation; (b) issue the final order upon submission of a written settlement agreement duly signed by both parties; and (c) not entertain an issue which has been settled amicably by parties under this section.”. PART XXII AMENDMENT OF THE VALUE ADDED TAX ACT, (CAP. 148) Construction Cap. 148
Part
PART XXII
- 72 Verify source ↗
This part shall be read as one with the Value
AI-assisted research summary: This section says the part must be read together with the Value Added Tax Act, which it calls the principal Act.
72. This part shall be read as one with the Value Added Tax Act, hereinafter referred to as the “principal Act”. Amendment of section 3 - 73 Verify source ↗
The principal Act is amended in section 3, by
AI-assisted research summary: 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.
73. The principal Act is amended in section 3, by- (a) designating the content of section 3 as subsection (1); and (b) adding immediately after subsection (1) as designated the following: “(2) Where in respect of any taxable supply of goods, the tax has been paid in Tanzania Zanzibar pursuant to the law for the time being in force in Tanzania Zanzibar, at the same rate as the rate applicable in Mainland Tanzania, the tax shall be deemed to have been paid on the taxable supply in accordance with the provisions of this Act and no tax shall be payable on its transfer to Mainland Tanzania. (3) Where in respect of any taxable supply of 37 No. 3 The Finance Act 2021 goods, the value added tax has been paid in Tanzania Zanzibar at the rate lower than the rate applicable in Mainland Tanzania under this Act, the difference in the value added tax shall be deemed to have not been paid and shall be collected by Tanzania Revenue Authority from the taxable person upon transfer of goods to Mainland Tanzania in accordance with the provisions of this Act. (4) Where in respect of any taxable supply of goods, the supply is made directly by a taxable person in Mainland Tanzania to a recipient who is taxable person in Tanzania Zanzibar, the Tanzania Revenue Authority shall collect the value added tax and remit it to the Zanzibar Revenue Board.”. - 74 Verify source ↗
The principal Act is amended in section 6
AI-assisted research summary: The Commissioner General may exempt value added tax on specified imports or supplies if an applicant applies in the prescribed form.
74. The principal Act is amended in section 6- (a) by deleting subsection (2) and substituting for it Amendment of section 6 the following: “(2) Notwithstanding the provisions of subsection (1), the Commissioner General may, upon application by an applicant in the prescribed form, exempt value added tax on- (a) importation of raw materials to be used solely in the manufacture of long-lasting mosquito nets; (b) importation by or supply to a Government entity of goods or services to be used solely for implementation of a project funded by- (i) (ii) a the Government; concessional loan, agreement non- concessional loan or grant through an the the United of Government Republic and another government, donor or lender of concessional loan or non-concessional loan; or between (iii) a grant agreement duly approved by the Minister in accordance with the provisions of the Government Loans, Grants and Guarantees Act entered between local government authority and a donor: Provided that, such agreement provides for value added tax exemption on goods or services; or (c) importation or supply of goods or services for the relief of natural calamity or 38 No. 3 The Finance Act 2021 disaster; the Government of (d) importation by or supply of goods or services to an entity having an agreement with the United Republic for purpose of operating or executing a strategic project: Provided that, such agreement provides for value added tax exemption on goods or services; (e) an importation by or supply of goods or services non-governmental a organisation having an agreement with the Government of the United Republic solely for project implemented by the respective non-governmental organisation: Provided that, such agreement provides for value added tax exemption on goods or services.”; to (b) in subsection (4), by deleting the words “The order issued by the Minister” and substituting for them the words “The exemption issued by the Commissioner”; (c) by deleting subsection (5) and substituting for it the following: “(5) The Minister may, for better carrying out of the provisions of this section, make regulations prescribing the manner of application, granting and monitoring utilization of exemption granted.”; (d) by deleting subsections (6) and (7); (e) renumbering subsection (8) as subsection (6); (f) adding immediately after subsection (6) as renumbered the following: “(7) For purposes of this section, “applicant” means- (a) a local manufacturer of long-lasting mosquito nets having a performance agreement with the Government of the United Republic; (b) a Government entity; (c) a local government authority; (d) non-governmental organization; and (e) an entity having an agreement with the Government of the United Republic for purpose of operating or executing a strategic project. 39 No. 3 The Finance Act 2021 (8) For the purpose of subsection (2)(d), a strategic project shall be a project that has been so determined by the Cabinet.”. Amendment of section 11 - 75 Verify source ↗
The principal Act is amended in section 11 by
AI-assisted research summary: This section replaces section 11(10) of the principal Act with a new definition of “capital goods.”
75. The principal Act is amended in section 11 by deleting subsection (10) and substituting for it the following - “(10) For purposes of this section, “capital goods” means goods classifiable under Chapters 84, 85, and 90 of Annex 1 to the Protocol on the Establishment of the East African Community Customs Union: that, Provided the goods are not imported for the purpose of resale in the ordinary course of carrying on the person’s economic activity, whether or not in the form or state in which the goods were imported.”. Repeal of section 55A - 76 Verify source ↗
The principal Act is amended by repealing section
AI-assisted research summary: This section amends the principal Act by repealing a section.
76. The principal Act is amended by repealing section - 77 Verify source ↗
The principal Act is amended in section 59
AI-assisted research summary: This section amends section 59 of the principal Act and adds a new item covering transportation and incidental services supplied to an international pipeline.
77. The principal Act is amended in section 59- (a) in subsection (3), by adding immediately after paragraph (e) the following: “(f) a supply of transportation and incidental services to an international pipeline.”; (b) in subsection (4), by adding immediately below the definiton of the term “stores” the following: “international pipeline” means a cross border pipeline for transportation of crude oil from a foreign country to a port facility in the United Republic in which such crude oil is exported to another foreign country.”. Amendment of section 94 - 78 Verify source ↗
The principal Act is amended in section 94(2) by
AI-assisted research summary: 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.
78. The principal Act is amended in section 94(2) by deleting paragraph (g) and substituting for it the following: “(g) prescribing for the manner of remission of value added tax collected for goods supplied to a registered taxable person in Tanzania Zanzibar;”. Amendment of Schedule
Part
PART XXIII
- 80 Verify source ↗
This Part shall be read as one with the Vocational
AI-assisted research summary: This section says this Part must be read together with the Vocational Education and Training Act, which it calls the principal Act.
80. This Part shall be read as one with the Vocational Education and Training Act, hereinafter referred to as the “principal Act”. Amendment of section 14 - 81 Verify source ↗
The principal Act is amended in section 14 in
AI-assisted research summary: Section 14 is amended by replacing the word “four” with “ten”.
81. The principal Act is amended in section 14 in subsection (1), by deleting the word “four” and substituting for it the word “ten”. Amendment of section 19 by- - 82 Verify source ↗
The principal Act is amended in section 19(1)(e),
AI-assisted research summary: 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).
82. The principal Act is amended in section 19(1)(e), (a) deleting the word “or” appearing at the end of subparagraph (i); and (b) adding immediately after subparagraph (ii) the following: (iii) provide public health.”. Passed by the National Assembly on the 24th June, 2021. NENELWA J. MWIHAMBI. Clerk of the National Assembly 42
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Finance Act, 2021
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