Navigating Digital Service Taxation in Tanzania: Law, Enforcement, and New Challenges

• Technology has shifted business operations to digital platforms
• Online transactions present challenges for revenue collection
• OECD highlights difficulty of taxing transactions across jurisdictions without physical presence
• Tanzania has updated legal framework to tax online transactions
• Digital service tax introduced in 2022 broadened scope of taxation to include digital transactions
• Electronic services subject to income tax, value added tax, digital service tax, and withholding tax
• DST targets income earned from Tanzanian consumers by non-resident suppliers
• Withholding tax of 3% applies to owners of digital platforms facilitating electronic services
• Electronic services subject to VAT at a rate of 18%

Source: dentons.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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