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1.  Canada - Tanzania Income and Capital Tax Treaty (1995)

2.  Denmark - Tanzania  Income and Capital Tax Treaty  (1976) 

3.  Finland - Tanzania  Income and Capital Tax Treaty  (1976)

4.  India - Tanzania  Income Tax Treaty (1979)

Decided tax Cases 2007

• BIDCO Oil and Soap Ltd No 89 of 2007.2 January 2013
• ISGNIA LTD VS COMM
• ISSIONER GENERAL
• MS Skylink Travels 7 tOPURS Tt) Civil No  8 of 2007.2012

Decided tax Cases 2008

• Mbeya Cement Company Ltd No 19 of 2008.31 Decemeber 2012
• Samson Ngw'alida No. 86 of 2008.28 December 2012

Decided tax Cases 2019

• Civil Appeal No. 81 of 2019 Pan African Energy Tanzania LTD vs Commissioner General, TRA
• Civil Appeal No. 89 of 2019 Geita Gold Mining Limited vs Commissioner General, TRA
• Civil Appeal No. 117 of 2019 Vodacom Tanzania PLC vs Commissioner General, TRA
• Civil Appeal No. 174 of 2019 Tanzania Tobacco Processors Limited vs Commissioner General, TRA
• Civil Appeal No. 211 of 2019 Star Media (Tanzania) Limited vs Commissioner General, TRA
• Civil Appeal No. 217 of 2019 Jovet Tanzania Limited vs Commissioner General TRA
• Civil Appeal No. 218 of 2019 Kilombero Sugar Co. Ltd vs Commissioner General, TRA

Decided tax Cases 2020

• SHOPRITE CHECKERS (T) LIMITED VERSUS THE COMMISSIONER GENERAL, TANZANIA CIVIL APPEAL NO. 307 OF 2020
• Civil Appeal No. 57 of 2020 Singita Trading Store EA Limited vs Commissioner General, TRA
• Civil Appeal No. 58 of 2020 Ophir Tanzania (Block 1) Limited vs. Commissioner General, TRA
• Civil Appeal No. 107 of 2020 Vodacom Tanzania PLC vs Commissioner General, TRA
• Civil Appeal No. 172 of 2020 Pan African Energy Tanzania Limited vs Commissioner General, TRA

Decided tax Cases 2011

• APPEAL NO[1]. 7 TRA VS NMB[1]correct
• APPLICATION  NO. 6 OF 2011BRAEBURN SCHOOL (T)  LTD
• PEMBE MILLS VS TRA APPEAL NO 10 OF 2011
• TBL_Vs_COMMISSIONER_GEN. 2 0F 2011
• Civil Appeal No. 146 of 2021 Tanga Cement PLC vs Commissioner General, TRA
• Civil Appeal No. 163 of 2021 Q-Bar Limited vs Commissioner General, TRA
• Civil Appeal No. 265 of 2021 Mlimani Holdings Limited vs Commissioner General, TRA
• Civil Appeal No. 356 of 2021 Mwenga Hydro  Limited vs Commissioner General, TRA
• Civil Appeal No.159 of 2021 Dominion Tanzania Limited vs. Commissioner General, TRA

  Decided tax Cases 2012

• APPEAL  NO. 8 OF 2012 MALAREX AGENCY (T)Y LTD
• Poseidom Enterprises Ltd Fruit De la Me Ld Kitamon Fishing Company Bakari Foods Ltd No. 12 of 2006.28 Desemba, 2012
• Roshani Meghjee & Co Ltd  Appeal No 49 of 2008.28 Desemba 2012

Decided tax Cases 2014

• TRA v Chevron Tanzania Ltd ( Appeal No. 78, 2014)

Decided tax Cases 2015

• TRA v Buryanhulu Gold mine Ltd (Appeal No. 89 & 90 of 2015)
• TRA v African Barrick Gold Mine PLC (Appeal No. 128 of 2013 dated 9th July 2015)
• TRA v Geita Gold Mining Limited (Civil Appeal No. 141 of 2015)
• TRA v BP Tanzania (Civil Appeal No. 125 of 2015)
• TRA v The Board of Trustees of the National Social Security Fund (NSSF) - Income tax Appeal No. DSM 16 OF 2015
• Civil Appeal No. 78 of 2015 North Mara Gold Mine Limited vs Commissioner General TRA

Decided tax Cases 2017

• Civil Appeal No. 132 of 2017 Geita Gold Mining Limited vs Commissioner General TRA
• Civil Appeal No. 314 of 2017 Access Bank Tanzania LTd vs Commissioner General, TRA

Case Notes on Decided Tax Cases

This section consists of various tax laws which oversee taxation process in Tanzania. It consists of the main Laws, Regulations and Finance Acts. The main tax laws are to be read in conjunction in order to achieve the desired goal of the provisions

Finance Acts

This section consists of Finance Acts which provide changes in tax laws made during a particular fiscal year.

Finance Act 2007 Finance Act 2008 Finance Act 2009 Finance Act 2010 Finance Act 2011 Finance Act 2012 Finance Act 2013 Finance Act 2014 Finance Act 2015 Finance Act 2016

Finance Act 2017

Finance Act 2018

Finance Act 2019

Finance Act 2020

Finance Act 2021

Finance Act 2022

Finance Act 2023

The Interpretation of Laws(The Rectification of Printing Errors) (The Finance Act,__2022) Order,2022)

Main Tax Laws

This section consists of the main tax laws. These are the fundamental laws to be read in conjunction with their respective Regulations and Finance Acts

Tax Administration Act, Cap 438 R.E 2019

Income Tax Act, Cap 332 R.E 2019

The Value Added Tax Act, Cap 148 R.E 2019  

The Port Service Charges Act, Cap 264 R.E 2019

The Motor vehicle (Tax Registration and Transfer) Act, Cap 124 R.E 2019

The Airport Service Charges Act, Cap 365 R.E 2019  

The Road and Fuel Toll Act Cap 220 R.E 2019  

The Stamp Duty Act, Cap 189 R.E 2019  

The East African Community Customs Management (Amendment) Act, 2011

The East African Community One Stop Border Post Act, 2016

The Gaming Act, Cap 41 R.E 2019 

The Foreign Vehicle Transit Charges Act, Cap 84 R.E 2019 

The Written Laws Miscellaneous amendments) (No. 2) Act, 2019

The Excise (Management and Tariff) Act, Cap 147, R.E 2019

The Tanzania Revenue Authority Act, Cap.399 R.E 2019  

The Customs (Management and Tariff) Act [CAP. 403 R.E. 2019]

The East African Community Customs Management [Rev.2017]

The Vocational Education and Training Act [CAP.82  R.E. 2019]

Other tax laws

The Tax Revenue Appeals Act, Cap 408 R.E 2019  

The Hotels Act Cap. 105  

The Oil and Gas Revenues Management Act, Cap 328 R.E 2019

Local Government Authorities (Rating) Act, Cap 289 R.E 2019

Local Government Finances Act, Cap 290 R.E 2019

Regulations

This part consist of regulations made by the Minister for matters authorized to be made or prescribed and for better carrying into effect of the principles, purposes and provisions of the respective Acts.

Regulation under the Tax Administration Act

The Tax Administration (General) (Amendment) Regulations, 2022

The Tax Administration (Remission of Interest and Penalties) (Revocation) Regulations, 2021

The Tax Administration (General) Regulation, 2016

The Tax Administration (Transfer Pricing) Regulations, 2018

The Tax Administration (General) (Amendment) Regulations, 2017

The Electronic Revenue Collection System 2017

The Electronic Tax Stamps Regulations, 2018

The Tax Administration (Registration of small vendors and service providers) Regulations, 2020 

Regulations under the Income Tax Act

The Income Tax (Exemption) (Expatriates Employees) (Extension of the Lake Victoria Pipeline Water Supply Project to Tabora, Nzega and Igunga towns) (Package II) (M/S Larsen & Toubro Limited-Shriram EPC Joint Venture) Order, 2022

The Income Tax (Registration of Non-Resident Electronic Service Suppliers) (Amendment) Regulations, 2023

The Income Tax (Registration of non-resident Electronic Service Providers) Regulations, 2022

The Income Tax (Transfer Pricing) Regulations, 2014

The Income Tax Regulation Transfer Pricing Guid elines

Regulations under VAT

The Value Added Tax (General) (Amendment) Regulations, 2023  

The Value Added Tax (Registration of Non-Resident Electronic Service Suppliers) (Amendment) Regulations, 2023

The Value Added Tax (Registration of non-resident Electronic Service Suppliers) Regulations, 2022

The Value Added Tax (Exemption Management Procedures) Regulations, 2021

The Value Added Tax (General) (Amendment) Regulations,2021

The Value Added Tax (General) Regulations, 2015  

The Value Added Tax General Regulation, amendments, 2018

The Value Added Tax Exemption Monitoring Procedures) Regulations, 2018

Regulations under the EAC Customs Management Act

The E AC customs Management (Duty Remission) Regulations, 2008 The  EAC customs Management Regulations, 2010 The  EAC customs Management (compliance and enforcement) Regulations, 2012

The  EAC One Stop Border post Regulations, 2017

Protocols and rules

Protocol on the Establishment of the East African Customs Union The East African Community Customs Union (Rules of Origin) Rules

Other regulations

The Gaming (Amendment) Regulations 2023

The Gaming (Internet Gaming) Regulations, 2022

The Gaming (Amendment) Regulations, 2022

The Excise (Management and Tariff) (Licensing and Administration of Manufacturers of Excisable Goods and Denatured Spirits (Amendment) Regulations, 2022

The Laws Revision (The Rectification of Printing Errors) (The Tanzania Revenue Authority Act, Revised Edition, 2019) Order, 2021

The National Payment Systems (Electronic Money Transaction Levy) Regulations, 2022

The Public Finance (Amendment) Regulations,2022

The excise (Management and Tariff) The Films and Music Products (Tax Stamps) Regulations 2013

The Road Traffic (Motor Vehicles Registration) Regulations , 2001

The Road Traffic (Motor vehicle Registration) (Amendment) Regulations, 2014

The Road Traffic (Motor Vehicles Registration) (Amendment) Regulations, 2017

The Fire and Rescue Force (Safety Inspections and Certificates (Amendment) Regulations, 2017

Tourism Development levy Regulation, 2013

The Interpretation of Laws (The Rectification of Printing Errors) (The Finance Act,__2022) Order, 2022)

Calculators and Tools

• PAYE Mainland
• PAYE Zanzibar
• Calculator & Tool for Motor Vehicles
• Publications
• Tax collection statistics
• Audited Financial Statements
• System User Guides

• culture and art
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Ministry to use tourism levy for improved services

Africa-Press – Tanzania . TOURISM Development Levy (TDL) will be used effectively to develop wildlife tourism and increase the number of tourists visiting the attractions in the country. Deputy Minister for Tourism and Natural Resources, Ms Mary Masanja said the target is to reach five million tourists a year by 2025.

To achieve this, the deputy minister said there are a number of plans including the effective use of tourism development levy in improving infrastructures and other services. She gave the assurance here when answering Mohammed Jumah Soud (Donge-CCM), who wanted to know how TDL is being used to support Wildlife Development Fund as well as the tourism sector to increase the number of tourists vising the attractions.

Ms Masanja said TDL was introduced in 2008 to develop tourism products, to control and monitor the standards and quality of tourism industry and business, promotions of tourism attractions and capacity building for the sector to conduct research whose findings will be used to improve the sector performance.

However, after amendment of the financial services in 2020, TDL collection levies are now carried jointly by the ministry and the Tanzania Revenue Authority and the revenue collected is deposited in government coffers. On the part of wildlife, she said Wildlife Conservation Fund is in place and it caters across a number of wildlife protection and conservation issues which are within the national parks and outside the scope.

December last year, the ministry of Natural Resources and Tourism handed over a newly reviewed tourist Bed Night Levy to the Tanzania Revenue Authority (TRA) expected to provide a list of registered tourism accommodation facilities liable to pay charges. The levy is in line with the Tourism Act no. 29 of 2008, 59 (2) together with the Tourism Development Levy (TDL) Regulations that started enforcement immediately after appearing in the government gazette in October 1, 2013.

TRA has been using accommodation list introduced in 2015 for collection of Bed Night Levy for 1,200 facilities that were available that time. The updated TDL came into effect after the government learnt that the 2015 list is out-dated because the number of accommodation facilities has increased after recognizing 577 new accommodation services providers making a total of 1815 accommodations facilities countrywide that are supposed to pay Bed Night Levy.

During the event, the government put its plans to review all accommodation facilities in the country with the aim of expanding the range for TRA to collect tax.

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VAT introduction to impact growth in Tanzania’s tourism industry

Tanzania’s efforts to improve its infrastructure have led to a search for new revenue streams, which may impact growth in the tourism sector over the near term.

As part of a package of reforms aimed at funding an overhaul of the road, rail and air networks, in July the government removed a value-added tax (VAT) exemption for tourism services, which are now subject to 18% VAT. Financial services saw the withdrawal of a similar dispensation, and vehicle registration fees were raised as well.

According to public statements from Philip Mpango, minister of finance and planning, tax revenues as a percentage of GDP are expected to rise – partly as a result of the VAT levy – from 12.6% in FY 2015/16 to 13.8% in FY 2016/17.

The need for new revenue streams is clear given the size of the capital outlays in the government’s latest budget, which outlines plans to increase spending by nearly one-third and forecasts the fiscal deficit expanding slightly to 4.5% of GDP.

Infrastructure push

Under the current plan, one-quarter of the total budget, or TZS5.47trn ($2.51bn), is allocated to infrastructure projects, with TZS2.18trn ($1bn) earmarked for road construction and rehabilitation, and TZS2.49trn ($1.1bn) for various projects to boost connectivity, including rail, port and airport upgrades.

Improving the condition of Tanzania’s transport networks would provide a range of benefits for a number of key sectors, including tourism.

“Poor roads and power shortages make tourists feel uncomfortable and erode the competitiveness of the destination,” Damas Mfugale, former chairman of the Hotel Association of Tanzania, told local media earlier this year.

Tanzania has roughly 86,000 km of roads, of which less than a quarter are paved, leading to access problems during inclement weather. Limited road networks beyond the popular sites in northern Tanzania have also dampened visitor traffic to less well-travelled parts of the country.

To this end, authorities at Ruaha National Park – the largest national park, spanning some 20 sq km of central Tanzania – recently appealed to the government to modernise the park’s access roads.

“Most roads leading to the park are in a poor condition, to the extent that visitors fail to reach the game reserve,” Maronda Maronda, acting chief park warden, told local media at the end of November.

Higher-priced tourism

The levying of VAT on tourism services – which will increase the costs of tours, game drives and safaris – has raised concern among domestic and international stakeholders in the tourism industry.

The Tanzania Association of Tour Operators, for example, estimated that the higher prices had resulted in at least 8000 visitor cancellations and $660,000 in lost revenue as of early July.

The country has also faced pushback from the European Travel Agents’ and Tour Operators’ Associations. Representing some 70,000 travel agents and tour operators in 27 European countries, the group threatened to rebook its customers to other African destinations – including neighbouring Kenya, which does not impose a VAT on tourism services – if the exemption was not reinstated.

The private sector’s concerns come amid what has been a gradual decade-long increase in tourist numbers, with international arrivals increasing by nearly 90% since 2004 to reach 1.1m in 2015.

The sector is also the country’s highest foreign exchange earner, contributing TZS10.9trn ($5.03bn) to GDP last year, or 11.4%, according to the 2016 World Travel & Tourism Council (WTTC) report on Tanzania. The WTTC forecasts that this growth will remain steady over the next 10 years, maintaining an average growth rate of 7.1% per annum to reach 11.6% of GDP in 2026.

Visitors are drawn by a wide range of attractions, including Tanzania’s 16 national parks, 31 game reserves, 33 wildlife management areas and six nature reserves – which include iconic sites like Mount Kilimanjaro, Zanzibar and Serengeti National Park – as well as 1424 km of coastline on the Indian Ocean.

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We’re sidelined in levy setting, say tour agents

Tourists view animals in one of the national parks. Tourism stakeholders want a one-stop centre for collecting levies. PHOTO | FILE

What you need to know:

We want one-stop centre for managing tourism levies. Duplication of authorities for charging tourism levies cause embarrassment to tourism dealers and tourists. The growth of tourism has also been hampered by this problem

Dar es Salaam. For a long time, tourism stakeholders have been complaining of a chain of taxes that they need to comply in Tanzania.

At one point, one operator commented that they spend more time in complying with the taxes and other regulatory issues than doing the business itself.

Now, the tourism stakeholders are demanding a one stop centre responsible for collecting tourism levies to create a conducive tourism business environment.

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Speaking with BusinessWeek, Chief Executive Officer of Tanzania Association of Tour Operators (Tato), Mr Sirili Akko, says that tourism stakeholders are being sidelined when it comes to the process of formulating new tourism levies by the responsible ministry and local governments.

“When the government imposes tourism development levy in any financial year, there is no prior consultation with stakeholders. There is also a problem of allowing local governments to impose tourism levies, which again there is no consultation with stakeholders,” says Mr Akko.

“We want a one-stop centre for managing tourism levies. Duplication of authorities for charging tourism levies cause embarrassment to tourism dealers and tourists. The growth of tourismhas also been hampered by this problem as there is no conducive business environment,” he says.

Under the Finance Act 2014, local governments have the power to impose tourism levies, which cause each district council to formulate rate of levies.

“During the preparation of the tourism budget for example, the forthcoming budget stakeholders have not been consulted to submit their problems. In the previous budgets we have been sidelined and the problem goes on,” he says.

In the middle of this month the Tanzania Confederation of Tourism (TCT) reacted to new concessional fees that the government intends to charge hotels around national parks, saying they will hit the industry hard.

The regulations which will take effect in July this year will require visitors staying in 27 hotels located in 15 national parks across the country to pay between $30 and $100 fixed rates per night per person as concessional fees.

When talking to BusinessWeek last week the public relations manager for Tanzania National Parks (Tanapa), Mr Pascal Shulutete said tourism stakeholders’ complaints must await the responsible government authority to handle. “They have to channel the complaints to the responsible minister. They have to follow regulations until the responsible authority revises them,” says Mr Shulutete.

The senior public relations manager of Tanzania Tourists Board (TTB), Mr Godfrey Tengeneza, also supports the idea and, according to him, it is up to the responsible government authority to hold a consultative meeting with stakeholders to discuss the issue. “This is a policy issue which requires the responsible authority to decide. Stakeholders have to channel that matter to the responsible authority,” says Mr Tengeneza.

But the tour manager for Diagle Tours based in the city Mr Samwel Ludawi says that the government tendency to impose new tourism levies should be accompanied by requisite development of transport infrastructure for connecting international airports, tourist hotels and attractive tourist centres.

“We want the government to continue improving transport infrastructure to attract more tourists. Charging more levies without improving tourism infrastructure, especially roads and the public transport system would be an unfair deal,” says Mr Ludawi. Mr Meelis Kuukler, an international consultant in the hospitality industry says that poor services have been a major factor for Tanzania’s failure to retain tourists who have visited the country for the first time.

According to him, many international visitors coming to the country have been refusing to visit again due to their negative views on the state of tourism services offered.

He says Tanzania has huge tourism potentials, being the only country in the world which has protected 25 per cent of tourism resources, but it has been failing to be one of the giant recipients of international visitors due to such a negative perception.

He also argues that levies charged for tourists must be invested to improve the services further in order to attain sustainable tourism development. According to a report of the Ministry of Tourism and Natural Resources for 2014/15 financial year, the number of international arrivals to the country grew from 583,000 in 2004 to 1,096,000 in 2013, while tourism earnings increased from $746 million (Sh1.4 trillion) to $1,853 million (Sh3.7 trillion) in the same period.

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