Offers new incentives for strategic investments and mining

On 15 June 2022, the Tanzanian Parliament passed the Finance Bill, 2022. Key changes include the following:

• The Minister for Finance can exempt from tax, income accruing from special strategic investments that are approved by the National Investment Steering Committee under the Tanzania Investment Act. • Exemptions from income tax for: (i) Gains on the realization or transfer of mineral rights and mineral information to an entity formed between the Government and an investor, (ii) Gains on the realization or transfer of free carried interest shares from an entity to the Government, (iii) Gains on the realization or transfer of shares to the Government through the Treasury Registrar. • Changes to the Mining Act, CAP 123, to reduce royalty rates on (i) Gold sold at refinery centers from 6% to 4%, (ii) Coal used as industrial raw material from 3% to 1% • Changes to the Tanzania Investment Act, CAP 38, to provide fiscal incentives approved by the National Investment Steering Committee (NISC) to special strategic investors to be issued under the respective tax laws.

All proposed changes would be effective from 1 July 2022, unless indicated otherwise.

• Type:

  • Promotion and facilitation (Investment incentives)

• Industry:

  • Not industry specific
  • Primary (Mining and quarrying)

• Sources:

  • EY, Tanzania’s Parliament passes Finance Bill 2022, https://globaltaxnews.ey.com/news/2022-5593-tanzanias-parliament-passes-finance-bill-2022, 21 Jun 2022