Aug 9, 2022

Mawazo Writing Africa

Writing about the main

Budget: Tanzania’s new tax targets Google, Facebook

Tanzania will introduce a digital tax this year, said the country’s finance minister, to target global internet giants offering services in the country.

The 2 percent tax will come into effect in July and will follow similar ones Attempts by other countries to force US tech multinationals to pay at least part of their earnings in the form of local taxes.

Tanzania’s Minister of Finance and Planning, Mwigulu Nchemba, announced the measure on Tuesday when he State Budget.

“Tanzania’s Revenue Agency will establish a simplified registration process to accommodate digital economy operators who do not have a presence in Tanzania,” Mr. Nchemba told lawmakers.

“These The measure is intended to keep up with the rapid growth of the digital economy,” he added.

The tax must be approved by the Tanzanian Parliament, which will pass de n budget.

Read also:Kenya joins Tanzania and Uganda on taxing digital businesses

The tax The announcement follows talks in the April between officials at the Tanzania Revenue Authority and US social media giant Meta – the parent company of Facebook, Instagram and WhatsApp.

Nearly 140 countries signed up for a global minimum corporate tax rate of 15 percent last October under the auspices of the Organization for Economic Co-operation and Development (OECD).

Additional countries, including Turkey and India, have since joined the agreement, which is expected to come into effect in 2023.

The historic deal aims to put an end to companies protecting profits in low-tax haven countries.