Tanzania Targets Crypto Traders With Proposed Income Tax Act Amendment

Tanzania plans to amend its Income Tax Act to tax crypto trades. The proposal includes a three per cent withholding tax on income from digital asset transactions. Digital platform owners 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 collect an additional $178,600 (465 million shillings) in revenue. Finance Minister Mwigulu Lameck Nchemba Madelu revealed the plan to amend the tax in a speech to the National Assembly on June 13, 2024.