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 It repealed the Stamps Ordinance.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 Tanzania mainland or if executed outside Tanzania mainland relating to any property or any matter or thing performed in Tanzania mainland, 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.

 

EXCISE DUTY

 

Excise Duty

Excise Duty is a duty charged on specific goods and services manufactured locally or imported on varying rates. It is charged in both specific and ad valorem rates.

• Items charged under specific rates include:

Wine, spirits, beer, soft drinks, mineral water, fruit juices, Recorded DVD, VCD, CD and audio tapes, cigarettes, tobacco, petroleum products and Natural gas.

• Items charged under ad-valorem rates include:

Money transfer services, electronic communication services, pay to view television services, imported furniture, motor vehicles, plastic bags, specified aircrafts, firearms, specified cases, cosmetics and medicaments.

Ad-valorem rates are: 0%, 5%, 10%, 17%, 15%, 20%, 25% ,30% and 50%.

• Liability to pay excise duty.

Excise duty shall become due and payable in respect of:

1. any scheduled article imported, by the importer thereof at the time immediately before the article ceases to be subject to customs control or at such other time as may be directed by the Minister in the Gazette,
2. any scheduled article manufactured in the United Republic of Tanzania, by the manufacturer:

• upon sale of the article by him, or
• upon the article ceasing to be subject to customs control, or
• upon removal of the article from the premises where it manufactured, whichever first occurs.

1. any scheduled article manufactured or imported by any person free of duty and which is subsequently sold to any other person, by the purchaser at the time of the sale of the article by him,
2. any electronic communication service supplied by electronic communication service provider at the time when such mobile, fixed or wireless phone is in use or when payment is received for the service whichever time shall be the earliest. 
3. any pay-to-view television service provider using cable, terrestrial infrastructure, satellite or other technology when the service is supplied,
4. charges or service fees by financial institutions and telecommunication service provider on money transfer and payment services.

 

Title
Submission of returns by manufacturers of scheduled articles
Excise Duty on Motor vehicles
Tax stamps on film and music products
Excise Duty on Electronic Communication
Excise Duty on Charges and Fees