Tanzania Plans to Revise Income Tax Act for Taxation of Cryptocurrency Transactions

Tanzania is planning to amend the Income Tax Act to tax cryptocurrency transactions. The proposal includes a 3% withholding tax on income from digital asset transactions. Owners of digital platforms or facilitators of digital asset transfers will act as withholding agents. Foreign citizens operating such platforms must register under Tanzania’s simplified tax regime. The government expects to generate an additional $178,600 (TZS 4.65 billion). Finance Minister Mwigulu Lameck Nchemba Madelu revealed this tax amendment plan during a speech in the National Assembly on June 13, 2024.