The Finance Act is a key piece of legislation which supports the fiscal measures proposed by the government in the annual national budget. In this article we highlight the key changes introduced by the Finance Act of 2023, which came into effect on 1 July 2023, unless indicated otherwise.
Income Tax Act, CAP.332
Change in underlying ownership
Change in underlying ownership rules will not apply where the change is:
Change in underlying ownership rules will not apply where the change is:
- a result of allotment of new membership interest of the entity; or
- a sole result of transfer of membership interest of a resident entity to another resident person.
Electronic services
A non-resident who receives a payment that has a source in Tanzania from an individual, other than in conducting business, for an electronic service, is required to pay income tax by way of single instalment equal to 2 per cent of gross payments received in a calendar month. Previously, the payment had to be for “services rendered through a digital marketplace”.
Payments received by a non-resident in respect of an electronic service consumed by or attributable to an individual in Tanzania are sourced in Tanzania regardless of the place of payment, provided that the consumption of the service by an individual is not made during the course of doing business. Payments for electronic services made whilst conducting business would be subject to withholding tax.
The monthly compliance deadline for filing of a tax return and paying income tax is on or before the 20th day of the following month. Previously, the deadline was on the seventh day of the following month.
A non-resident who receives a payment that has a source in Tanzania from an individual, other than in conducting business, for an electronic service, is required to pay income tax by way of single instalment equal to 2 per cent of gross payments received in a calendar month. Previously, the payment had to be for “services rendered through a digital marketplace”.
Payments received by a non-resident in respect of an electronic service consumed by or attributable to an individual in Tanzania are sourced in Tanzania regardless of the place of payment, provided that the consumption of the service by an individual is not made during the course of doing business. Payments for electronic services made whilst conducting business would be subject to withholding tax.
The monthly compliance deadline for filing of a tax return and paying income tax is on or before the 20th day of the following month. Previously, the deadline was on the seventh day of the following month.
No comments:
Post a Comment