Event report
Event Report | Finance Act 2025
A timely breakdown of Tanzania’s 2025 Finance Act, what’s new, what’s changing, and how businesses can stay ahead.
In its ongoing mission to support a transparent, predictable, and business-friendly regulatory environment, the French-Tanzanian Chamber of Commerce (FTCC) hosted a strategic webinar this morning in collaboration with Grant Thornton Tanzania, focused on decoding the Finance Act 2025 and its implications for private sector actors in Tanzania.
This timely session brought together business leaders, CFOs, legal advisors, and entrepreneurs seeking to understand the scope and impact of the newly enacted fiscal reforms. The 2025 Finance Act, signed into law on June 30, introduces a comprehensive set of changes affecting tax obligations, incentives, and compliance requirements across sectors.
Objectives of the Webinar
The webinar was designed to equip Chamber members with a clear and concise understanding of the key amendments introduced by the Finance Act 2025, enabling them to navigate the new regulatory landscape with greater confidence. It also aimed to evaluate the practical implications of these changes on tax planning, financial reporting, and day-to-day compliance operations. By fostering a space for open dialogue between private sector stakeholders and experienced fiscal experts, the session reaffirmed the Chamber’s mission to act as a trusted source of business intelligence—especially vital in a policy environment marked by rapid reform and increased complexity.
Key Insights Shared
Facilitated by a team of senior consultants from Grant Thornton, the presentation addressed critical legal amendments, including:
Income Tax Reforms
Stricter application of thin capitalization rules based on paid-up share capital
Introduction of deemed dividend distribution subject to 10% withholding tax
Revised limits on tax loss deductions in mining and petroleum activities
Changes to alternative minimum tax thresholds
Withholding Tax Updates
Expansion of WHT to include gaming commissions, raw salt purchases, and hired vehicles
Rate increases on payments to non-residents and service fees across extractive sectors
VAT & Excise Duty Changes
Introduction of new VAT withholding mechanisms and reporting obligations
Adjustments to VAT exemptions for local industries (e.g., fertilizers, garments, solar)
New excise duties on selected goods and updated deadlines for filing and payment
Administrative and Compliance Measures
Enhanced digital tax systems under the amended Tax Administration Act
Stricter rules on objection handling, penalty assessment, and subcontract disclosure
Updated procedures for ROI certification by CPAs for businesses exceeding turnover thresholds
These reforms represent both a challenge and an opportunity for businesses to reassess their tax planning strategies and ensure compliance in an increasingly regulated fiscal environment.
A Word from the Chamber
“This webinar aligns with our commitment to inform and empower the business community. Understanding the evolving fiscal landscape is key to strategic decision-making and risk mitigation,” — Hannah de Somviele, French-Tanzanian Chamber of Commerce
About the Partner
Grant Thornton Tanzania is a member of Grant Thornton International, one of the world’s leading organizations of independent audit, tax, and advisory firms. Their commitment to guiding clients through regulatory change makes them a key knowledge partner of FTCC.
