Section 60 of the Finance Act amends Part 4(c) of the First Schedule to the Income Tax Act (Cap. 332) by increasing the Withholding Tax rate on Service Fees and Insurance Premiums. Specifically, the rate has been raised from 5% to 10% on Insurance Premiums paid to non-resident entities and on payments for technical and management services in the extractive sector.
Section 77 of the Finance Act, 2025, amends Section 59 of the Mining Act by expanding the scope of a previous limited requirement related to domestic gold processing and trading. All mineral rights holders and licensed dealers are now required to allocate at least 20% of the gold they extract or acquire for processing, smelting, refining, and trading within Tanzania. This gold must be sold to local refineries, smelters, jewellers, or the Bank of Tanzania, following the procedures outlined in the Mining (Minerals and Mineral Concentrates Trading) (Amendment) Regulations, 2024.
Previously, under the Finance Act of 2024, the requirement for local sale of 20% gold applied only to mineral rights holders and licensed dealers not operating under a government agreement that provided otherwise. Section 77 removes this exemption, thereby extending the obligation to all mineral rights holders and dealers, including those with existing agreements with the government.
Section 78 of the Finance Act, 2025, introduces a new section 113A immediately after section 113 introducing a new levy called HIV Response Levy to be charged on minerals at a rate of 0.1 percent of the gross value of minerals, which shall be collected by the Mining Commission and the levy shall be payable at the time of payment of royalty by a person liable to pay royalty under the Mining Act.
Disclaimer:
This article is of a general nature and solely for information purposes. It is not a legal opinion and only counts as an expert general opinion but not professional advice. While the information is accurate as at the date of this article, there can be no guarantee that the information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice and after a thorough examination of the circumstances of each situation. For any further clarification on the contents of this article please reach out directly to the Partner named herein.