Taxation of digital financial services (DFS) in Africa

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Tanzania

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Total population : 65.5 M. (2022)
Working age (15-64) population : 35.07 M. (2022)
Mobile money accounts1: 41.4 M. (2014)
Transaction values (% GDP) : 49.51% (2014)

1Note: Responses are from participants aged +15


Changes to specific taxes on digital financial services in Tanzania

Sources

  1. The Finance Act, 2013. Section 11.
    Tanzania implements a 0.15 per cent excise duty on money transfers with an exemption for transactions below 30,000 shillings (TZS 30,000).
  2. The Finance Act, 2014. Section 17.
    Tanzania replaces the 2013 excise duty on money transfers with a 10 per cent excise duty payable by a person to a financial institution or telecommunication service provider.
  3. The Finance Act, 2021. Section 33.
    Tanzania implements a levy on mobile money transfers and withdrawals transactions with a rate of TZS 10-10000, depending on the transaction values, and an exemption for transactions below TZS 1000.
  4. The National Payment Systems Regulations (Amendment), 2021
    Tanzania decreases the rate of the Mobile Money Transfer and Withdrawal Transactions levy to TZS 10-7000, with an exemption for transactions bellow TZS 1000.
  5. The National Payment Systems Regulations, 2022
    Tanzania decreases the rate of the Money Transfer levy to 10-4000 TZS, with an exemption of transactions below TZS 100.
  6. National Payment Systems (Amendment) Regulations, 2022
    Tanzania drops the Money Transfer Levy on Bank-to-Bank, Bank-to-another-Bank, and Mobile-to-Bank (both sides) transfers, and decreases the rate of the Money Transfer levy to TZS 10-2000.

Mobile money use and accounts

Evolution in the usage of mobile money
(source: IMF, Financial Access Survey (FAS) (2023) )

Sorry, the graph is not available for this device.

Evolution in mobile money and financial institution accounts
(source: World Bank, Global Findex Database (2021) )

Disparity in Digital Financial Service usage between wealthier and poorer segments of the population
(source: World Bank, Global Findex 2021)

Made or received digital payment (% of each group)

*Note: responses are from participants aged +15

Mobile money accounts (% of each group)

*Note: responses are from participants aged +15

Financial institution accounts (% of each group)

*Note: responses are from participants aged +15

Digital payments and accounts by user group
(source: World Bank, Global Findex 2021)

Adults making or receiving digital payments

Adults with a mobile money account

Adults with a financial institution account

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Last update : 31/01/2024


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