Newsletter Issue 5 : 04th September, 2023
Tax Updates in the Tanzanian Mining
Sector
Please be advised that we are bringing to your attention the latest tax revisions introduced by the
Tanzanian Finance Act, of 2023. These revisions specifically target the mining sector and may
potentially have implications for your mining business.
holder of primary licence holder or artisanal miner” and
“Digging for fairness: Balancing tax exemption and adding to the First schedule 4(c) “(vi) in the case of a holder
revenue mobilization in the mining sector "
of a primary mining licence or artisanal miner referred to in
section 83(1)(e)-two percent”
1. VAT Exemption on the Supply of Precious Based on the amendments, the responsibility for paying the
Metals, Gemstones and other Precious Stones.
tax lies with the Artisanal Miner or holders of a PML.
Moreover, it is important to note that the obligation to
The Finance Act has replaced Item 25 of the Exemption withhold and remit payments is incumbent on the following
Schedule with the following;
sale arrangements:
“25. Supply of precious metals, gemstones and other
precious stones at refineries, buying stations or Mineral and Direct Sale to Dealers: Where the Artisanal Miner or
Gem Houses designated by the Mining Commission under holders of PML sell directly to Licensed dealers, the tax shall
the Mining Act, Cap. 123”.
be withheld by the licensed dealers.
Prior to the change, the exemption was only available to
small scale miners supplying precious metals, gemstones Sale to Licensed Brokers: When Artisanal Miners or
and other precious stones at buying stations or at Mineral holders of PML sell to Licensed brokers, the tax shall be
and Gem Houses. *The exemption is effective from 01 July withheld by the licensed brokers and there shall be no
2023.
withholding tax when the broker makes a subsequent sale to
the dealer.
2. Introduction of Withholding Tax of 2% on the
Sale of Minerals.
Note: The withholding tax of 2% on the sale of minerals is a
final withholding tax meaning that the income from the sale
Section 86 (A)(1) of the Income Tax Act has been amended of the above-mentioned minerals will not be subjected to
by introducing a withholding tax of 2% on payment for the further income tax.
purchase of precious metals, gemstones and other precious
stones made to a holder of primary licence holder (PML) or We encourage you to review these changes and assess
artisanal miner. The Finance Act amendments are as their potential impact your business. If you have any
follows;
questions or concerns, please do not hesitate to contact us.
“86(a)(1)(g) payment for purchase of minerals made to a
Contact us
Contact us
Grant Thornton Uganda
Grant Thornton Tanzania
Dar es Salaam
Kampala
Kumeil Bandali
1st Floor, Viva Towers,
Plot 23, 3rd Floor, Lugogo One,
Tax Senior Associate
Ali Hassan Mwinyi Road
Lugogo Bypass,
E: kumeil.bandali@tz.gt.com
PO Box 7906
PO Box 7158
T:+255 735 052 053
Dar es Salaam, Tanzania
Kampala, Uganda
E: info@tz.gt.com
E: info@ug.gt.com
W: www.grantthornton.co.tz
W: www.grantthornton.co.ug
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