Tanzania considers 3% tax on crypto transactions

Tanzania is looking to boost government revenue by introducing taxes on cryptocurrency transactions and income earned by digital content creators. This proposal comes from Finance Minister Dr. Mwigulu Lameck Nchemba Madelu, who presented the plan during a recent National Assembly meeting.

The proposed amendment to the Income Tax Act would introduce a 3% withholding tax on income generated from buying and selling cryptocurrencies. Platforms facilitating these transactions would be responsible for collecting and remitting the tax to the authorities. Additionally, foreign companies involved in Tanzanian cryptocurrency transactions would need to register with the Tanzania Revenue Authority.

The government also aims to tax digital content creators. A proposed 5% tax would apply to income earned from creating and selling digital content.

These measures are expected to generate 465 million shillings anzania is looking to boost government revenue by introducing taxes on cryptocurrency transactions and income earned by digital content creators.