2024 Finance Act Introduces Significant Tax Reforms

The Tanzanian Official Gazette has announced the enactment of the 2024 Finance Act, effective immediately.

Key measures include:

1. VAT exemption or zero percent rate on specified manufacturing inputs.
2. VAT zero-rating on select goods from July 1, 2024, to June 30, 2025.
3. New tax rates applied per vehicle for resident individuals transporting passengers or goods.
4. Withholding tax rates set at 5 percent for payments to resident digital content creators, 3 percent on industrial minerals purchases, and 3 percent on income from digital asset transfers.
5. Expansion of VAT exemption to include aircraft manufacturers and assemblers for domestic aircraft maintenance and supply.

Source: tra.go.tz

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