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Tanzania
Stamp Duty Act
Chapter 189
- Commenced on 1 July 1972
- [This is the version of this document as it was at 30 November 2019 to 30 June 2021.]
- [Note: This legislation has been thoroughly revised and consolidated under the supervision of the Attorney General's Office, in compliance with the Laws Revision Act No. 7 of 1994, the Revised Laws and Annual Revision Act (Chapter 356 (R.L.)), and the Interpretation of Laws and General Clauses Act No. 30 of 1972. This version is up-to-date as at 31st July 2002.]
- [Amended by Finance Act, 2002 (Act 18 of 2002) on 1 July 2002]
- [Amended by Written Laws (Miscellaneous Amendments) Act, 2003 (Act 11 of 2003) on 23 May 2003]
- [Amended by Finance Act, 2003 (Act 15 of 2003) on 1 July 2003]
- [Amended by Finance Act, 2005 (Act 13 of 2005) on 1 July 2005]
- [Amended by Finance Act, 2006 (Act 6 of 2006) on 1 July 2006]
- [Amended by Finance Act, 2009 (Act 14 of 2009) on 1 July 2009]
- [Amended by Finance Act, 2011 (Act 5 of 2011) on 1 July 2011]
- [Amended by Tax Administration Act (Chapter 438) on 1 August 2015]
Part I – Preliminary provisions
1. Short title
This Act may be cited as the Stamp Duty Act.2. Interpretation
In this Act, unless the context otherwise requires—" banker" includes a bank and any person acting as a banker;"bill of exchange" means a bill of exchange as defined by the Bills of Exchange Act and includes a draft, order, cheque, letter of credit, and any other document, entitling or purporting to entitle any person, whether named therein or not, to payment by any other person of, or to draw upon any other person for, any sum of money;"bill of lading" means any instrument signed by the owner or master of a ship or vessel or by the agent of the owner, which states that certain specified goods have been shipped upon a particular ship or vessel and which purports to set out the terms on which such goods have been delivered to and received by the ship or vessel, and includes the document commonly known as "through bill of lading" but does not include a mate's receipt;"bond" includes—(a)any instrument whereby a person obliges himself to pay money to another, on condition that the obligation shall be void if a specified act is performed, or is not performed, as the case may be;(b)any instrument, other than a bill of exchange or promissory note, attested by a witness and not payable to order or bearer, whereby a person obliges himself to pay money to another; and(c)any instrument so attested, whereby a person obliges himself to deliver grain or other agricultural produce to another;"chargeable" means, as applied to an instrument executed or first executed after the commencement of this Act, chargeable under this Act, and, as applied to any other instrument, chargeable under the written law in force in Tanzania when such instrument was executed, or where several persons executed the instrument at different times, first executed;"cheque" means a bill of exchange drawn on a specified banker and not expressed to be payable otherwise than on demand;"Commissioners" means the Commissioners of Stamp Duty appointed under the provisions of section 3;"Commissioner General" means the Commissioner General appointed under section 16 of the Tanzania Revenue Authority Act;[Cap. 399]"composition agreement" means an agreement entered into pursuant to the provisions of section 11;[Cap. 4 s. 8]"compounded duty" means any stamp duty payable under a composition agreement, and includes any sum payable pursuant to an order under section 13 and also includes any additional compounded duty or any penalty payable or failure to pay compounded duty or additional compounded duty on due date;"conveyance" includes a conveyance on sale and every instrument by which property, whether movable or immovable is transferred inter vivos and which is not otherwise specifically provided for by the Schedule hereto; and also a decree or order for, or having the effect of an order, for foreclosure;"duly stamped", as applied to an instrument, means that the instrument bears an adhesive or impressed stamp of not less than the proper amount and that such stamp has been affixed or used in accordance with the law for the time being in force in Mainland Tanzania;"executed" and "execution" used with reference to instruments, means "signed" and "signature";"Government" means the Government of the United Republic;"impressed stamp" includes—(a)labels affixed and impressed by a proper officer;(b)stamps embossed or engraved on stamped paper; and(c)adhesive stamps over-embossed;"instrument" includes every document by which any right or liability is, or purports to be, created, transferred, limited, extended, extinguished or recorded in a paper or electronic form;"instrument of partition" means any instrument whereby co-owners of any property divide or agree to divide such property in severalty, and includes also a final order for effecting a partition passed by a civil court and an award by an arbitrator directing a partition;"lease" means a lease of immovable property, and includes also—(a)a certificate of occupancy;(b)a grant for a term of the right to use and enjoy any easement, profit à prendre, or incorporeal right;(c)any instrument by which tolls of any description are let; and(d)any writing on an application for a lease intended to signify that the application is granted;"marine policy" means any insurance (including reinsurance) made upon any ship or vessel (whether for marine or inland navigation) or upon the machinery, tackle or furniture of any ship or vessel, or upon any goods, merchandise, or property of any description whatever on board of any ship or vessel, or upon the freight of, or any other interest which may be lawfully insured in, or relating to, any ship or vessel and includes any insurance of goods, merchandise or property for any transit which includes not only a sea risk, but also any other risk incidental to the transit insured from the commencement of the transit to the ultimate destination covered by the insurance, and where any person, in consideration of any money paid or to be paid for additional freight or otherwise, agrees to take upon himself any risk attending goods, merchandise or property of any description whatsoever while on board of any ship or vessel, or engages to indemnify the owner of any such goods, merchandise or property from any risk, loss or damage, such agreement or engagement shall be deemed to be a contract for marine insurance;"Minister" means the Minister responsible for finance;"mortgage deed" includes every instrument whereby for the purpose of securing money advanced, or to be advanced, by way of loan, or an existing or future debt, or the performance of an engagement, one person transfers, or creates, to or in favour of another, a right over or in respect of specified property, and for purposes of this Act includes a charge under the Land Registration Act;[Cap. 334]"paper" includes vellum, parchment, or any other material on which an instrument may be written;"person with whom a composition agreement has been entered into" includes such person's personal representatives, assigns and attorneys;"policy of insurance" includes—(a)a policy of insurance upon any life or lives or upon any event or contingency relating to or depending upon any life or lives;(b)a policy of insurance against accident, and for purposes of this Act "a policy of insurance against accident or an accident policy" means a policy of insurance for any payment agreed to be made upon the death of any person only from accident or violence or otherwise than from a natural cause, or as compensation for personal injury, or during the sickness of any person, or his incapacity from personal injury, or by way of indemnity against loss or damage to any property, and includes any notice or advertisement in a newspaper or other publication which purports to insure the payment of money upon the death of, or injury to, or sickness or incapacity of, or loss or damage to, property of the holder or bearer of the newspaper or publication containing the notice or advertisement only from accident or violence or otherwise than from natural cause;"power of attorney" includes any instrument empowering a specific person to act for and in the name of the person executing it;"promissory note" means a promissory note as defined by the Bills of Exchange Act; it also includes a note promising the payment of any sum of money out of any particular fund which may or may not be available, or upon any condition or contingency which may or may not be performed or happen;"proper officer" in relation to any function means the Commissioner General, a Commissioner or a Stamp Duty Officer upon whom such function is conferred or to whom such function has been delegated under this Act, and where such function has not been specifically conferred upon any of such persons, the Commissioner General or a Stamp Duty Officer;"receipt" includes any note, memorandum or writing—(a)whereby any money, or any bill of exchange, cheque, or promissory note is acknowledged to have been received;(b)whereby any other movable property is acknowledged to have been received in satisfaction of a debt;(c)commonly known as "cash sale" and given to any person making any payment or giving any bill of exchange, cheque or promissory note;(d)whereby any debt or demand, or any part of a debt or demand, is acknowledged to have been satisfied or discharged; or(e)which signifies or imports an acknowledgement of any debt or demand, whether the same is or is not signed with the name of any person;"specified country" means any country which the Minister may, by notice in the Gazette, declare to be a specified country for the purposes of the Act or of such provision of this Act as may be specified in such order;"settlement" means any non-testamentary disposition in writing of movable or immovable property made—(a)in consideration of marriage;(b)for the purpose of distributing property of the settlor among his family or those whom he desires to provide, or for the purpose of providing for some person dependent on him; or(c)for any religious or charitable purpose, and includes an agreement in writing to make such a disposition, and, where any such disposition has not been made in writing, any instrument recording, whether by way of declaration of trust or otherwise, the terms of any of such disposition;"Stamp Duty Officer" means a Stamp Duty Officer appointed under section 4; and"tribute agreement" means any instrument by which the holder of a claim or mining lease agrees to allow another person to work the claim or lease, or part thereof, in return for a proportion of the value of production or profits of working.[Act No. 14 of 2009 s. 18; Cap. 215]3. Commissioners
The Minister may, by notice in the Gazette, appoint not less than two and not more than five public officers to be Commissioners for Stamp Duty.4. Stamp Duty Officers
The Commissioner General may, by notice in the Gazette, appoint such number of public officers as he may deem fit to be Stamp Duty Officers for purposes of this Act and may, by such order or any subsequent order, delegate to a Stamp Duty Officer all or any of his functions or the functions of the Commissioners.[Act No. 6 of 2006 s. 28]Part II – Stamp duties
(a) Instruments chargeable with stamp duty
5. Instruments specified in Schedule chargeable
6. Several instruments used in single transaction
7. Instruments relating to several distinct matters
Any instrument comprising or relating to several distinct matters shall be chargeable with the aggregate amount of the duties with which separate instruments, each comprising or relating to one of such matters, would be chargeable under this Act.8. Instrument coming within several descriptions in Schedule
Subject to section 7, an instrument so framed as to come within two or more of the descriptions in the Schedule to this Act shall, where the duties chargeable there under are different, be chargeable only with the highest of such duties:Provided that, nothing in this Act contained shall render chargeable with duty exceeding ten shillings a counterpart or duplicate of any instrument chargeable with duty and in respect of which the proper duty has been paid.(b) Composition of duties
9. ***
[Repealed by Act No. 15 of 2004 s. 47]10. ***
[Repealed by Act No. 15 of 2004 s. 47]11. Agreement to compound duty on cheques
12. Terms implied in composition agreement
It shall be an implied term of every composition agreement entered into under this Act that—13. Power to compound duties
The Commissioner General may, by order, provide for the composition or consolidation of duties in the case of issue by anybody corporate of debentures, bonds or other securities.[Act No. 6 of 2006 s. 28]14. Moneys due under composition agreement to be government debt
Any sum of money due under a composition agreement, or an order under section 13 whether by way of compounded duty, additional compounded duty or penalty shall be a debt due to the United Republic and, recovered as duty or tax under the provisions of this Act or the Tax Administration Act.[Act No. 10 of 2015 s. 161; Cap. 438]15. ***
[Repealed by Act No.15 of 2004 s. 47](c) Exemptions
16. Minister may exempt chargeable instrument
17. Commissioner General may exempt fixed sum in lieu of duty on instrument
(d) Stamps and mode of using them
18. Duties how to be paid
Except as is otherwise expressly provided in this Act, the duty with which any instrument is chargeable shall be paid, and such payment shall be indicated on such instrument, by means of a stamp or stamps in such manner as may be prescribed.19. Where adhesive stamps used
20. Instruments stamped with impressed stamps, how to be written
Every instrument written upon paper stamped with an impressed stamp shall be written in such manner that the stamp may appear on the face of the instrument and cannot be used for or applied to any other instrument.21. Only one instrument to be on same stamp
No second instrument chargeable with duty shall be written upon a piece of stamped paper upon which an instrument chargeable with duty has already been written:Provided that, nothing in this section shall prevent any endorsement which is duly stamped or is not chargeable with duty being made upon any instrument for the purpose of transferring any right created or evidenced thereby or of acknowledging the receipt of any money or goods the payment or delivery of which is secured thereby.22. Instrument written contrary to section 18 or 19 deemed unstamped
Every instrument written in contravention of section 18 or section 19 shall be deemed to be unstamped.23. Certificate denoting duty or exemption
24. Provisions as to duplicates and counterparts
The duplicate or counterpart of an instrument chargeable with duty, except the counterpart of an instrument chargeable as a lease, such counterpart not being executed parts by or on behalf of any lessor or grantor, shall be deemed not to be duly stamped unless it is stamped as an original instrument or unless it appears by some stamp impressed thereon or by certificate given by a proper officer that the full and proper duty has been paid upon the original instrument of which it is the duplicate or counterpart.(e) Time when instruments must be stamped
25. Instruments executed in Tanzania
All chargeable instruments executed by any person in Mainland Tanzania shall be stamped within thirty days of execution:Provided that—26. Instruments executed outside Tanzania
Every chargeable instrument executed out of Mainland Tanzania shall be stamped within thirty days of its first arrival in Mainland Tanzania:Provided that—27. Bills, cheques and notes drawn outside Tanzania
The first holder in Tanzania Mainland of any bill of exchange, cheque or promissory note drawn or made outside Mainland Tanzania shall, before he presents the same for acceptance or payment, or endorses, transfers or otherwise negotiates the same in Mainland Tanzania, cause to be affixed the proper stamp and, in the case of an adhesive stamp, cancel the same:Provided that—28. Special provisions for any particular class of instruments
Notwithstanding the provisions of sections 25, 26 and 27, regulations made under this Act may provide for the time of stamping of any category, class or description of chargeable instruments.(f) Valuation of stamp duty
29. Conversion of amount expressed in foreign currencies
Where an instrument is chargeable with ad valorem duty in respect of any money expressed in any currency other than that of the United Republic, such duty shall be calculated on the value of such money in the currency of the United Republic according to the current rate of exchange on the date of the instrument.30. Stock and marketable securities, how to be valued
Where an instrument is chargeable with ad valorem duty in respect of any share, stock or other security, such duty shall, except as provided in article 60 of the Schedule hereto, be calculated on the value of such share, stock or security, according to the average price or the value thereof on the date of instrument.31. Effect of statement of rate of exchange or average price
Where an instrument contains a statement of current rate of exchange or average price, as the case may require, and is stamped in accordance with such statement, it shall, so far as regards the subject matter of such statement, be presumed, until the contrary is proved, to be duly stamped.32. Instruments reserving interest
Where interest is expressly made payable by the terms of an instrument, such instrument shall not be chargeable with duty higher than that with which it would have been chargeable had no mention of interest been made therein.33. Duty on mortgages of marketable securities
34. Duty on transfer in consideration of debt, or subject to future payment, etc.
35. Valuation in case of annuity, etc.
Where an instrument is executed to secure the payment of an annuity or other sum payable periodically, or where the consideration for a conveyance is an annuity or other sum payable periodically, the amount secured by such instrument or consideration for such conveyance, as the case may be, shall, for the purpose of this Act, be deemed to be—36. Claims under certain instruments limited by value of stamp
Where-—37. Facts affecting duty to be set forth in instrument
The consideration, if any, and all other facts and circumstances affecting the chargeability of any instrument with duty, or the amount of the duty with which it is chargeable, shall be fully and truly set forth therein and the proper officer may require any person executing, or any person employed or being concerned in or about the preparation of any such instrument to give evidence on oath, or by affidavit, that the facts and circumstances therein are fully and truly set forth, and for such purpose the proper officer may administer an oath.38. Direction as to duty in case of certain conveyances
39. Duty in case of certain contracts and agreements
40. Transfers between associated corporations
(g) Persons liable to pay duty
41. Duties by whom payable
In the absence of an agreement to the contrary, the expense for stamp duty shall be borne by—42. Obligation to give receipt in certain cases
Part III – Adjudication of stamp duty
43. Adjudication
44. Certificate by Stamp Duty Officer
Part IV – Instruments not duly stamped
45. Examination and impounding of instrument
46. Special provision as to unstamped receipts
Where any receipt or acknowledgement of debt is tendered to or produced before any public officer unstamped in the course of the audit of any public account, such officer may in his discretion, instead of impounding the instrument, require a duly stamped receipt to be substituted therefor.47. Instruments not duly stamped inadmissible in evidence
48. Instruments impounded, how dealt with
49. Stamp Duty Officer may refund penalty paid under section 48(1)
50. Stamp Duty Officer may stamp instruments impounded
51. Instruments unduly stamped by accident
Where any instrument chargeable with duty and not duly stamped, not being a receipt, an acknowledgement of a debt, a bill of exchange or a promissory note, is produced by any person of his own motion before a Stamp Duty Officer within one year from the date of its execution or first execution, and such person brings to the notice of the Stamp Duty Officer the fact that such instrument is not duly stamped and offers to pay the Stamp Duty Officer the amount of the proper duty, or the amount required to make up the same, and the Stamp Duty Officer is satisfied that the omission to duly stamp such instrument was occasioned by accident, mistake or urgent necessity, he may, instead of proceeding under sections 45 and 50, receive such amount, and proceed in the manner prescribed by section 50.52. Endorsement of instruments on which duty has been paid under sections 47, 50 and 51
53. Proceedings under this Part not to bar prosecution
The taking of proceedings or the payment of a penalty under this Part in respect of any instrument shall not bar the prosecution of any person who appears to have committed an offence against this Act or the Tax Administration Act in respect of such instrument.[Act No. 10 of 2015 s. 162; Cap. 438]54. Persons paying duty or penalty may recover same in certain cases
55. Power of Commissioners to refund penalty or excess duty in certain cases
56. Non-liability for loss of instruments sent under section 48
57. Power of payer to stamp bills, promissory notes and cheques received by him unstamped
When any bill of exchange, promissory note or cheque is presented for payment unstamped or insufficiently stamped, the person to whom it is so presented may affix thereto the necessary adhesive stamp, and upon cancelling the same in manner herein before provided, may pay the sum payable upon such bill, note or cheque, and may charge the duty against the person who ought to have paid the same, or deduct it from the sum payable as aforesaid, and such bill, note, or cheque shall, so far as respects the duty, be deemed good and valid:Provided that, nothing herein contained shall relieve any person from any penalty or proceedings to which he may be liable for failure to properly stamp such bill, note or cheque.58. ***
[Repealed by Act No.10 of 2015 s. 163]59. Instruments tendered in primary courts
Part V – Allowances for stamps
60. Allowances for spoiled stamps
61. Application for relief under section 60, when to be made
The application for relief under subsection (1) of section 60 shall be made—62. Allowance by Commissioners and Commissioner General
63. Allowance for misused stamps
Where—64. Allowance for spoiled or misused stamps, how to be made
In case in which allowance is made for spoiled or misused stamps, or the Commissioner General has directed that allowance for any stamp be made, the Stamp Duty Officer may give in lieu thereof—65. Allowance for stamps not required for use
When any person is in possession of a stamp or stamps which have not been spoiled or rendered unfit or useless for the purpose intended and for which he has no immediate use, a Stamp Duty Officer shall repay to such person the value of such stamp or stamps in money, deducting ten cents for each shilling or portion of a shilling, upon such person delivering up the same to be cancelled, and proving to such officer's satisfaction—66. Allowance on renewal of certain debentures
66A. Application of allowance
Where a person is granted an allowance under this Part the Commissioner General may direct that the allowance be applied in reduction of any tax due payable by the person under any tax law.[Act No. 10 of 2015 s. 164]Part VI – Reference and revision
67. Control of Commissioners
68. Statement of case by Commissioners to Tax Revenue Appeals Board
The Commissioners may, and shall if so requested by any interested party, state any case referred to them under section 67 or otherwise before them for their consideration, and refer such case, with their own opinion, to the Tax Revenue Appeals Board:Provided that, where any interested party makes a request for reference to the Tax Revenue Appeals Board under this section, the Commissioners shall not refer the case to the Tax Revenue Appeals Board unless such person has first paid such fee as may be prescribed.[Act No. 15 of 2000 s. 38]69. Power of Tax Revenue Appeals Board to call for further particulars as to case stated
Where the Tax Revenue Appeals Board is not satisfied that the statements contained in any case referred to it under the provisions of section 67 are sufficient to enable it to determine the questions raised thereby the Board may remit the case to the Commissioners to make such additions thereto or alterations therein as the Board may direct in that behalf.[Act No. 15 of 2000 s. 38]70. Procedure in disposing of case stated
71. Statement of case by other courts to High Court
72. Revision of certain decisions of courts regarding sufficiency of stamps
Part VII – Offences
73. Offences relating to stamp duty
74. Where offence is committed by body corporate
Where any offence under this Act or under any regulations made under this Act is committed by a body corporate then, as well as the body corporate, any person who, at the time of the commission of the offence was concerned, as a director or an officer, with the management of the affairs of such body corporate shall be guilty of the offence and shall be liable to be proceeded against and punished accordingly, unless he proves to the satisfaction of the court that he had no knowledge and could not, by the exercise of reasonable diligence, have had knowledge of the commission of the offence.75. Liability of employer or principal
Where any offence under this Act or under any regulations made under this Act is committed by a person as an agent or employee then, as well as the agent or employee, the principal or employer shall be guilty of the offence and shall be liable to be proceeded against and punished accordingly unless he proves to the satisfaction of the Court that he had no knowledge and could not, by the exercise of reasonable diligence, have had knowledge of the commission of the offence.76. Commissioner General may compound offence
77. Burden of proof
In any proceedings for an offence under this Act, the burden to prove—Part VIII – Collection and recovery of stamp duty
78. Appointment and duties of agent
79. Deceased persons
Where any person dies then, to the extent to which any stamp duty remains unpaid shall be a debt due and payable out of his estate.[Acts Nos. 13 of 1996 s. 48; 15 of 2000 s. 38]80. Collection of stamp duty from person leaving or having left the United Republic
81. Collection of duty from guarantor
82. Collection of stamp duty by distraint
83. Security on property for unpaid duty
84. Collection of stamp duty from ship owner
Part IX – Miscellaneous provisions
85. Power of inspection
Every person, whether a public officer or not having in his custody any registers, books, records, papers, documents or proceedings, the inspection may tend to secure any duty, or to prove or lead to the discovery of any fraud, or omission, in relation to any duty, shall, at all reasonable times, permit a Stamp Duty Officer or any person authorised in writing in that behalf by the Commissioner General to inspect for such purpose the registers, books, papers, documents, and proceedings, and take such notes and extracts as he may deem necessary without fee or charge.[Act No. 13 of 1996 s. 48]86. Regulations
The Minister may make regulations for the better carrying out of the purposes and provisions of this Act, and without prejudice to the generality of the foregoing, may make regulations—Part X – Repeal and savings
87. Omitted
Definition of R.L. Cap. 18988. Repeal of R.L. Cap. 189
Repeals the Stamps Ordinance.89. Savings
Notwithstanding the repeal of the Ordinance—90. Omitted
Transitional provisions.History of this document
01 July 2021 amendment not yet applied
Amended by
Finance Act, 2021
30 November 2019 this version
Consolidation
01 August 2015
Amended by
Tax Administration Act
01 July 2011
Amended by
Finance Act, 2011
01 July 2009
Amended by
Finance Act, 2009
01 July 2006
Amended by
Finance Act, 2006
01 July 2005
Amended by
Finance Act, 2005
01 July 2003
Amended by
Finance Act, 2003
23 May 2003
01 July 2002
Amended by
Finance Act, 2002
01 July 1972
Commenced
Cited documents 0
Documents citing this one 186
Judgment 167
Act 11
1. | Companies Act | 1047 citations |
2. | Companies Act, 2002 | 287 citations |
3. | Value Added Tax Act | 60 citations |
4. | Co-operative Societies Act | 34 citations |
5. | Export Processing Zones Act | 27 citations |
6. | Bills of Exchange Act | 24 citations |
7. | Public Service Retirement Benefits Act | 17 citations |
8. | Local Authorities Provident Fund Act | 4 citations |
9. | Privatisation Trust Act | 3 citations |
10. | Tanganyika Higher Education Trust Fund Act | 2 citations |
Government Notice 4
Finding aid 1
1. | The Subsidiary Legislation of Tanzania Index - Vol. 2: 1998 - 2007 |
Gazette 1
1. | Tanzania Government Gazette dated 2005-11-04 number 44 |
JOT Documents and Guidelines 1
1. | Exhibits Management Guidelines |
Law Reform Report 1
1. | Comprehensive Review of Civil Justice System in Tanzania |