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The Finance Act, 2026 (the Act) was gazetted on 30 June 2026 following the passage of the Finance Bill 2026 (the Bill) by Parliament and its subsequent assent by the President.
The Act, which took effect on 1 July 2026, introduces a broad range of tax and legal reforms spanning the Income Tax Act, Value Added Tax Act, Excise (Management and Tariff) Act, Tax Administration Act, Export Tax Act, Stamp Duty Act and various sector-specific laws.
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Several of the reforms are aimed at improving the investment climate and providing greater certainty for businesses. Key investor-friendly measures include the introduction of shorter statutory timelines for VAT refund processing and payment, with interest accruing in favour of taxpayers where approved refunds are not settled within the prescribed period, income tax and excise duty exemptions for holders of mining licences under Framework Agreements with the Government, VAT deferral on imported capital goods, and a one-year income tax holiday for newly registered businesses under the presumptive tax regime.
These measures reflect the Government’s continued commitment to fostering a more predictable and competitive environment for investment in Tanzania.
In this legal alert, we analyse the measures introduced by the Act and their potential implications for businesses and investors in Tanzania.
Click here to download the analysis of the measures introduced by the Finance Act, 2026.
Should you have any questions on this legal alert, please do not hesitate to contact Daniel Ngumy, Geofrey Dimoso, Dennis Chiruba, Juliana Mosha or Samiath Mohamed.
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Contributors
1. Anwaar Katakweba – Principal Associate
2. Elizabeth Tarimo – Associate
3. Edith Joel – Associate
4. Ruth Nnko – Associate
5. Marion Massawe – Trainee Lawyer
6. William Mushi – Trainee Lawyer