Tanzania is considering changes to its Income Tax Act to impose taxes on cryptocurrency trading. The proposed amendment involves implementing a three per cent withholding tax on profits made from transactions involving digital assets. Those who own digital platforms or facilitate the transfer of digital assets will be responsible for withholding this tax. Foreign individuals who operate such platforms will need to register under Tanzania’s Simplified Tax Regime.
The government anticipates generating an additional $178,600 (465 million shillings) in revenue through these measures. Finance Minister Mwigulu Lameck Nchemba Madelu announced the plan to amend the tax during a speech to the National Assembly on June 13, 2024.
