The Finance Act, 2020

1. Where the total NIL income does not exceed 3,240,000/=

2. Where the total 9% of the amount income exceeds in excess of Tshs. 3,240,000/= but 3,240,000/= does not exceed Tshs.6,240,000/=

3. Where the total Tshs.270,000/= income exceeds plus 20% of the 6,240,000/= but amount in excess does not exceed of 6,240,000/= 9,120,000/=

4. Where the total Tshs. 846,000/= income exceeds plus 25% of the 9,120,000/= but amount in excess does not exceed of 9,120,000/= 12,000,000/=

5. Where the total Tshs.1,566,000/= income exceeds plus 30% of the 12,000,000/= amount in excess of 12,000,000/= (b) deleting figure “2,040,000/=” appearing in paragraph 1(2) and substituting for it figure “3,240,000/=” Amendment 38. The principal Act is amended in the Second of Second Schedule- Schedule (a) in paragraph 1, by: (i) deleting the words “fifty million shillings” appearing in subparagraph (1)(g)(iii) and substituting for them the words “one hundred million shillings”; and 18 <!-- page break --> No. 8 Finance Act, 2020 (ii) adding immediately after subparagraph (1)(o) the following proviso: “Provided that, this paragraph shall not apply to category B investor in the special economic zone as provided in Cap 420 the Special Economic Zones Act.” (iii) adding immediately after paragraph (v) the following: “(w) amounts paid to persons entitled to benefits granted pursuant to the provisions Cap 225 of Part V of the Political Service Retirement Benefits Act”; (b) adding immediately after paragraph 2 the following: “3. The provisions of item (w) shall be deemed to have come into operation on the 1st day of July 2016” PART VIII AMENDMENT OF THE LAND ACT, (CAP. 113) Construction 39. This Part shall be read as one with the Land Act, Cap. 113 hereinafter referred to as the “principal Act”. “Addition of 40. The principal Act is amended by adding section 24A immediately after section 24 the following: “Requirement 24A. A person who occupies a for application surveyed land shall, within ninety days for right of occupancy from the date of approval of the survey plan, apply to the Commissioner for a right of occupancy.”; Amendment 41. The principal Act is amended in section 33 by adding of section 33 immediately after subsection (12) the following: “(13) Notwithstanding subsection (1), the provisions of this section shall apply to an occupier of any surveyed land who fails to apply to the Commissioner for grant of right of occupancy within ninety days from the date of approval of the survey plan in accordance with the Cap. 324 Land Survey Act.” “(14) For the purpose of subsection (13), an occupier of land surveyed prior to the 1st day of July, 2020 who has not applied for a right of 19 <!-- page break --> No. 8 Finance Act, 2020 occupancy shall, within ninety days from the 1st day of July, 2020, apply to the Commissioner for a right of occupancy.”; “Amendmen 42. The principal Act is amended in section 33A, by- t of section 33A (a) adding immediately after subsection (1)(c) the following: “(d) land acquired and surveyed by a planning authority for the purpose of sale.” (b) adding immediately after subsection (4) the following: “(5) For the purpose of this section, “planning authority” has the meaning ascribed to it under the Cap 355 Urban Planning Act.” PART IX AMENDMENT OF THE LOCAL GOVERNMENT FINANCES ACT, (CAP. 290) Construction 43. This Part shall be read as one with the Local Cap. 290 Government Finances Act, hereinafter referred to as “the principal Act”. Amendment 44. The principal Act is amended in section 6(1) by of section 6 inserting between the words “licence and” and “at the rate” appearing in paragraph (u) the words “whose annual turnover exceeds four million shillings”. Amendment 45. The principal Act is amended in section 7(1) by of section 7 inserting between the words “licence and” and “at the rate” appearing in paragraph (y) the words “whose annual turnover exceeds four million shillings”. Addition of 46. The principal Act is amended by adding immediately section 9A after section 9 the following: “Service 9A.-(1) Notwithstanding any levy from provisions of this Act, the Minister communicat ion industry responsible for local government authorities shall establish and maintain a centralised system for collecting service levy from holders of- 20 <!-- page break --> No. 8 Finance Act, 2020 (a) network facility licence; (b) network service licence; (c) application service licence; (d) content service licence; (e) installation and maintenance of electronic communication licence; and (f) any other licence issued by the Tanzania Communications Regulatory Authority as the Minister may, by notice published in the Gazette, prescribe. (2) The Minister shall, in consultation with the Tanzania Communications Regulatory Authority, evaluate, assess, collect and account for service levy to be paid by holders of licences referred to under subsection (1). (3) The Minister may, by Order published in the Gazette, prescribe the manner in which collected levy shall be allocated to the local government authorities.” PART X AMENDMENT OF THE MINING ACT, (CAP. 123) Construction 47. This Part shall be read as one with the Mining Act, Cap. 123 hereinafter referred to as the “principal Act”. Amendment 48. The principal Act is amended in section 49(2), by- of section 49 (a) adding immediately after paragraph (i) the following: “(j) include a Taxpayer Identification Number (TIN) issued by the Tanzania Revenue Authority; (k) include a valid Tax Clearance Certificate issued by the Tanzania Revenue Authority;”; and (b) renaming paragraphs (j) and (k) as paragraphs (l) and (m) respectively. 21 <!-- page break --> No. 8 Finance Act, 2020 Amendment 49. The principal Act is amended in section 54(2), by- of section 54 (a) adding immediately after paragraph (b) the following: “(c) be accompanied by Taxpayer Identification Number (TIN) issued by the Tanzania Revenue Authority;” and (b) renaming paragraph (c) and (d) as paragraphs (d) and (e) respectively. Amendment 50. The principal Act is amended in section 56, by- of section 56 (a) deleting subsection (2) and substituting for it the following: “(2) An application made under subsection (1) shall be in the prescribed form and shall be accompanied by the prescribed fee, Taxpayer Identification Number and valid Tax Clearance Certificate issued by the Tanzania Revenue Authority in respect of operations to be conducted during the renewal period. (3) The Commission shall, upon receipt of an application under subsection (1), grant or refuse the application for renewal of the licence.”; and (b) renumbering subsection (3) as subsection (4). Amendment 51. The principal Act is amended in section 73 by of section 73 deleting subsection (1) and substituting for it the following: “(1) An application for a dealer licence shall be addressed to the Commission in the prescribed form and be accompanied by the prescribed fee, Taxpayer Identification Number (TIN) and a valid Tax Clearance Certificate issued by the Tanzania Revenue Authority.” Amendment 52. The principal Act is amended in section 75(3) by of section 75 adding the words “Taxpayer Identification Number (TIN) and valid Tax Clearance Certificate issued by the Tanzania Revenue Authority and” immediately after the words “accompanied by”. Amendment 53. The principal Act is amended in section 80(1), by of section 80 adding the words “Taxpayer Identification Number (TIN) and valid Tax Clearance Certificate issued by the Tanzania Revenue Authority” immediately after the word “fee” appearing at the end of that subsection. 22 <!-- page break --> No. 8 Finance Act, 2020 Amendment 54. The principal Act is amended in section 82 by adding of section 82 immediately after subsection (2) the following: “(3) An application for renewal under subsection (1) shall be accompanied by Taxpayer Identification Number (TIN) and valid Tax Clearance Certificate issued by the Tanzania Revenue Authority.”. PART XI AMENDMENT OF THE MOTOR VEHICLES (TAX ON REGISTRATION AND TRANSFER) ACT, (CAP. 124) Construction 55. This Part shall be read as one with the Motor Cap. 124 Vehicles (Tax on Registration and Transfer) Act, hereinafter referred to as the “principal Act”. Amendment 56. The principal Act is amended in paragraph 3 of the of First First Schedule, by- Schedule (a) deleting a “full stop” appearing at the end of the proviso and substituting for it a “semicolon”; and (b) adding immediately after the proviso the following: “Provided further that, registration tax for special registration number shall be five hundred thousand shillings in addition to the registration tax.” PART XII AMENDMENT OF THE NATIONAL PARKS ACT, (CAP. 282) Construction 57. This Part shall be read as one with the National Cap. 282 Parks Act, hereinafter referred to as the “principal Act.” Amendment 58. The principal Act is amended in section 9, by- of section 9 (a) designating the contents of section 9 as subsection (1); and (b) adding immediately after subsection (1) as designated the following: “(2) Any sum, fees, monies, charges payable under this Act or any subsidiary legislation made thereunder shall be collected by the Tanzania Revenue Authority and remitted to 23 <!-- page break --> No. 8 Finance Act, 2020 the Consolidated Fund.” Repeal and 59. The principal Act is amended by repealing section replacement 10 and replacing for it the following: of section 10 “Managem 10. The funds and resources of the ent of Trustees shall be managed s under this Act. funds and resources Annual 10A.-(1) The Board of Trustees estimates shall, before the commencement of each financial year, cause to be prepared estimates of the revenue and expenditure for that year. (2) The annual estimates shall contain all estimated expenditure of the funds of the Trustees for the financial year concerned and the Board of Trustees shall approve recurrent and development expenditure. (3) The annual estimates shall be submitted to the Minister for approval and laying before the National Assembly in Cap. 439 accordance with the provisions of the Budget Act.” Repeal of 60. The principal Act is amended by repealing section section 11 11. PART XIII AMENDMENT OF THE NGORONGORO CONSERVATION AREA ACT, (CAP. 284) Construction 61. This Part shall be read as one with the Ngorongoro Cap. 284 Conservation Area Act, hereinafter referred to as the “principal Act.” Amendment 62. The principal Act is amended in section 12, by- of section 12 (a) designating the contents of section 12 as subsection (1); and (b) adding immediately after subsection (1) as designated the following: “(2) Any sum, fees, monies, charges 24 <!-- page break --> No. 8 Finance Act, 2020 payable to the Authority under this Act or any subsidiary legislation made thereunder shall be collected by the Tanzania Revenue Authority and remitted to the Consolidated Fund.” Repeal and 63. The principal Act is amended by repealing section 13 replacement of section 13 and replacing for it the following: “Manageme 13. The funds and resources of the nt of funds Authority shall be managed and administered and resources by the Board in accordance with the financial laws and other relevant laws and shall be utilized to defray expenses in connection with performance of functions of the Authority under this Act. Annual 13A.-(1) The Board shall, before the estimates commencement of each financial year, cause to be prepared estimates of the revenue and expenditure for that year. (2) The annual estimates shall contain all estimated expenditure of the funds of the Authority for the financial year concerned and the Board shall approve recurrent and development expenditure. (3) The annual estimates shall be submitted to the Minister for approval and laying before the National Assembly in Cap. 439 accordance with the provisions of the Budget Act.” Repeal of 64. The principal Act is amended by repealing section 14. section 14 PART XIV AMENDMENT OF THE TANZANIA REVENUE AUTHORITY ACT, (CAP. 399) Construction 65. This Part shall be read as one with the Tanzania Revenue Cap. 393 Authority Act, hereinafter referred to as the “principal Act.” Amendment 66. The principal Act is amended in Part B of the First Schedule of First by adding immediately after item 50 the following: Schedule GN. No. “51. The Ngorongoro Conservation Area Act Cap. 135 of 284.” 2014 25 <!-- page break --> No. 8 Finance Act, 2020

52. The Wildlife Conservation (The Tanzania Wildlife Management Authority) Establishment Order, 2014.” PART XV AMENDMENT OF THE TAX ADMINISTRATION ACT, (CAP. 438) Construction 67. This part shall be read as one with the Tax Cap. 438 Administration Act, hereinafter referred to as the “principal Act”. Amendment 68. The principal Act is amended in section 27 by of section 27 adding immediately after subsection (2) the following: “(3) A taxpayer’s representative referred to under this section shall be a practising advocate, a tax consultant or such other person authorised by power of attorney by the taxpayer.” Amendment 69. The principal Act is amended in section 44 by of section 44 adding immediately after subsection (3) the following: “(4) Information or document requested by the Commissioner General under subsection (1) shall be submitted within a period of fourteen days from the date of service of the notice. (5) The Commissioner General may, upon receipt of an application, extend the time referred to in subsection (4) where the applicant has shown sufficient cause, and such extention shall not be unreasonably withheld. (6) A person who fails to submit information or documents within the time prescribed under subsection (4) or (5) shall be precluded from using such document or information as evidence at the stage of objection or appeal.” Amendment 70. The principal Act is amended in section 50(2), by- of section 50 (a) deleting the word “or” appearing at the end of paragraph (b); (b) deleting a “full stop” appearing at the end of 26 <!-- page break --> No. 8 Finance Act, 2020 paragraph (c) and substituting for it a “semicolon” and the word “or”; (c) adding immediately after paragraph (c) the following: “(d) any matter decided under any tax law on account of agreement, consent or admission.” Amendment 71. The principal Act is amended in section 51, by- of section 51 (a) adding immediately after subsection (4) the following: “(5) An objection to a tax decision shall be accompanied by relevant document or information which the tax payer intends to rely upon to support his objection. (6) The information or document which the tax payer intends to rely upon shall be submitted at the time of lodging the notice of objection.”; (b) renumbering subsections (5) to (9) as subsections (7) to (11) respectively; and (c) adding immediately after the renumbered subsection (11) the following: “(12) Where the Commissioner General has reasonable cause to believe that the objector intends to permanently leave the United Republic, the tax payable under subsection (7) shall be the whole of the assessed tax.” Amendment 72. The principal Act is amended in section 52 by of section 52 adding immediately after subsection (5) the following: “(6) The provisions of section 44(1) relating to production of documents shall apply to submission of evidence or information referred to in subsection (1). (7) The evidence or information referred to in subsection (1) shall be submitted within the time prescribed by the Commissioner General in the notice: Provided that, the time prescribed by the Commissioner General shall not exceed thirty days from the date of service of the notice. (8) The Commissioner General may, upon receipt of sufficient reasons adduced by 27 <!-- page break --> No. 8 Finance Act, 2020 the objector, extend the time for submission of evidence or information for a period not exceeding seven days from the date of service of the notice of extention. (9) Where the objector fails to submit the document or information required by the Commissioner General in terms of subsection (1) within the time prescribed or extended, such objector shall not be permitted to rely on such document or information at the time of hearing of an appeal. (10) The Commissioner General shall determine an objection to a tax decision within six months from the date of admission of the notice of objection. (11) Where the Commissioner General fails to determine the objection within the time prescribed under subsection (10), the tax assessment or tax decision shall be treated as Cap. 408 confirmed and the objector shall have the right to appeal to the Board in accordance with the Tax Revenue Appeals Act.” PART XVI AMENDMENT OF THE TREASURY REGISTRAR (POWERS AND FUNCTIONS) ACT, (CAP. 370) Construction 73. This Part shall be read as one with the Treasury Cap. 370 Registrar (Powers and Functions) Act, hereinafter referred to as the “principal Act”. Amendment 74. The principal Act is amended in section 10A(1) by of section deleting the words “is not financed through Government budget” 10A appearing between the word “corporation” and “shall”. PART XVII AMENDMENT OF THE TRUSTEES’ INCORPORATION ACT, (CAP. 318) Construction 75. This Part shall be read as one with the Trustees’ Cap. 318 Incorporation Act, hereinafter referred to as the “principal Act”. 28 <!-- page break --> No. 8 Finance Act, 2020 Amendment 76. The principal Act is amended in section 1A by of section adding in the appropriate alphabetical order the following new 1A definitions: ““arrangement” has the meaning ascribed to it Cap. 332 under the Income Tax Act; “beneficial owner” means a natural person- (a) who directly or indirectly ultimately owns or exercises substantial control over an entity or an arrangement; (b) who has a substantial economic interest in or receives substantial economic benefit from an entity or an arrangement directly or indirectly whether acting alone or together with other persons; (c) on whose behalf an arrangement is conducted; or (d) who exercises significant control or influence over a person or arrangement through a formal or informal agreement;”. ““politically exposed person” has the meaning Cap 423 ascribed to it under the Anti-Money Laundering Act;” ; Amendment 77. The principal Act is amended in section 2, by- of section 2 (a) inserting the words “particulars of beneficial owner and” between the words “contain” and “such” appearing in subsection (2); and (b) adding immediately after subsection (2) the following: “(3) Particulars of beneficial owner referred to under subsection (2) shall include- (a) full name and any former or other name; (b) date and place of birth; (c) telephone number; (d) nationality, national identity number, passport number or other appropriate identification and proof of identity; (e) residential, postal and email address, if any; (f) place of work and position held; 29 <!-- page break --> No. 8 Finance Act, 2020 (g) nature of the interest including the details of the legal, financial, security, debenture or informal arrangement giving rise to the beneficial ownership; and (h) oath or affirmation as to whether the beneficial owner is a politically exposed person or not.”; and (c) renumbering subsections (3) and (4) as subsections (4) and (5) respectively. Addition of 78. The principal Act is amended by adding immediately section 15A after section 15 the following: “Records of 15A. A trust shall submit to the non-resident Administrator General records of non- beneficiary and resident beneficiary and beneficial owner beneficial of the trust.” owner PART XVIII AMENDMENT OF THE VALUE ADDED TAX ACT, (CAP. 148) Construction 79. This Part shall be read as one with the Value Added Cap. 148 Tax Act, hereinafter referred to as the “principal Act”. Amendment 80. The principal Act is amended in section 59(3)(e) by of section 59 inserting the words “or for such further period as the Act No.1 of 2005 Commissioner for Customs may authorise pursuant to the East African Community Customs Management Act, 2004” between the words “days” and “while” appearing in subparagraph (ii). Amendment 81. The principal Act is amended in section 68(3), by- of section 68 (a) deleting a “semicolon” and the word “and” appearing at the end of paragraph (c) and substituting for them a “full stop”; and (b) deleting paragraph (d). Amendment 82. The principal Act is amended in Part I of the of Schedule Schedule by adding immediately after sub item 4 of Item 13 the following: “ 5. Crop agricultural insurance ” 30 <!-- page break --> No. 8 Finance Act, 2020 PART XIX AMENDMENT OF THE VOCATIONAL EDUCATION AND TRAINING ACT, (CAP. 82) Construction 83. This Part shall be read as one with the Vocational Cap. 82 Education and Training Act, hereinafter referred to as the “principal Act”. Amendment 84. The principal Act is amended in section 14 by of section 14 deleting the words “four point five per centum” appearing in subsection (2) and substituting for them the words “four per centum”. Passed by the National Assembly on the 15th June, 2020. STEPHEN KAGAIGAI Clerk of the National Assembly 31 <!-- page break -->