Introduction
The Stamp Duty Act, 1972 came into operation on July 1, 1972. It repealed the Stamps Ordinance. Its objectives were designed to consolidate and amend the law relating to stamp duty, by introducing minor amendments, most of which were of procedural nature. Provisions relating to composition agreements were clarified. Special provisions relating to offences were incorporated.
What Instrument is chargeable with Stamp Duty?
The instrument specified in the schedule which is executed in Tanganyika (Tanzania mainland) or if executed outside Tanganyika relating to any property or any matter or thing performed in Tanganyika, must be charged with duty of amount that is specified or calculated in the manner specified in the schedule in relation to such instrument unless it is exempted.
The Stamp Duty Act specifies the persons to pay stamp duty where in most cases it is payable by the person drawing, making, or executing the instrument. When a person is in doubt as to whether or not an instrument is required to be stamped or as to the amount of the Stamp Duty payable in respect of any instrument, he can refer the matter to the Stamp Duty Officer for adjudication.
Administration of Stamp Duty
Time when instrument must be stamped
All chargeable instruments executed by any person in Tanzania Mainland shall be stamped within thirty days of execution:
Where any such instrument is brought to a proper officer for adjudication, is supposed to be stamped within thirty days, the period from the presentation of the instrument to the proper officer until the notification to the person who Presented it of the decision of the proper officer, shall been excluded in computing the said period of thirty days; and every receipt, acknowledgement of a debt, promissory note and bill of exchange shall be stamped on the date of execution or the date of the instrument.
Rates Applicable to instruments
Stamp duty is charged on specified instruments at varying rates. Some few common instruments and their duty rates are as follows:
|
Description of Instruments |
Proper Stamp Duty |
|
AFFIDAVIT, Including an affirmation or declaration in the case of persons by law allowed to affirm or declare instead of taking oath. |
TSHS. 2000/= |
|
AGREEMENT OR MEMORANDUM OF AGREEMENT |
TSHS. 2000/= |
|
AGREEMENT RELATING TO DEPOSIT OF TITLE DEEDS, HYPOTHECATION, PAWN OR PLEDGE, |
TSHS. 2000/= |
|
APPRAISEMENT OR VALUATION, made otherwise than under an order of the Court in the course of a suit: |
TSHS.500/= |
|
Instrument of EXCHANGE OF PROPERTY |
0.5 percent for the first TSHS. 100,000/=, then 1 percent of value in excess of TSHS. 100,000/= |
|
LEASE, including an under-lease or sublease and any agreement to let or sublet: |
1 percent of the annual reserved rent for lease of all durations |
|
MEMORANDUM OF ASSOCIATION OF A COMPANY |
TSHS. 10,000/= |
|
Instrument of PARTNERSHIP: (i) Where the capital does not exceed TSHS. 10,000/=.
(ii) Where the capital exceeds TSHS. 100,000/= but does not exceed TSHS. 1,000,000/=.
(iv) In any other case. Dissolution of partnership. |
TSHS. 1,000/=
TSHS. 5,000/=
TSHS. 10,000/=
TSHS. 10,000/= |
|
POWER OF ATTORNEY, |
TSHS. 2000/= |
|
TRANSFER (whether with or without consideration) (a) of shares in an incorporated company or other body corporate; (b) of debentures whether the debenture is liable to duty or not;
(c) of any interest secured by a bond, mortgage-deed or policy of insurance |
1 percent of the value of the shares approved by the Board
1 percent of the value of the shares approved by the Board
1 percent of the value of the shares approved by the Board. |