Tanzania Plans to Amend Income Tax Act to Tax Crypto Trades, Digital Content Creation

Tanzania has outlined a proposal to amend the Income Tax Act to enable the collection of taxes from the crypto trades in the country.

Tanzania to Amend Income Tax Act, Introduce Crypto, Digital Content Creation Taxes. The East African nation of Tanzania has outlined a proposal to amend the Income Tax Act to enable the collection of taxes from the crypto trades in the country.

This is according to a speech by the Minister for Finance, Hon. Dr. Mwigulu Lameck Nchemba Madelu (MP), to the National Assembly on June 13 2024, presenting the estimates of the government revenue and expenditure for 2024/25.

The speech includes several proposed enhancements to enhance the country’s revenue targets. This includes an amendment to the Income Tax Act to introduce a 3% withholding tax on incomes derived from ‘digital asset’ transactions, as highlighted below:

“The government proposes to amend the Income Tax Act to introduce withholding tax at the rate of 3 percent on incomes derived from digital asset transactions and introduce digital asset as an asset class under the Income Tax Act.”

The Tanzanian government is also planning to enhance its coffers through the taxation of digital content creation, as outlined in the budget statement.

“Introduce Withholding Tax at the rate of 5 percent on income derived from the business of digital content creation which is done by the resident business entities. The purpose of this measure is to enhance the tax base and adherence to equitable tax principles. This measure is expected to enhance government revenue collection by 968 million shillings,” the statement reads.

In 2022, the Finance and Planning Minister revealed that the Bank of Tanzania is ‘finalising preparations of a business case for establishment of a CBDC in Tanzania and evaluation of crypto assets after recording significant progress’ in formalising digital financial services.

News source：https://www.kdj.com/cryptocurrencies-news/articles/tanzania-plans-amend-income-tax-tax-crypto-trades-digital-content-creation.html

The above is the detailed content of Tanzania Plans to Amend Income Tax Act to Tax Crypto Trades, Digital Content Creation. For more information, please follow other related articles on the PHP Chinese website!