As previously mentioned in our tax news alert, the proposed increase in the rate of the Digital Service Tax (DST) received assent from the President. The President signed the Finance Act, 2026, and, with that, gave the green light to increase the Digital Services Tax from 2% to 3%.
Effective Date
The new Digital Service Tax rate shall be increased on July 1, 2026.
First DST Return
The new Tanzania Digital Services Tax rate shall be formally applied for the first time on the gross income made by designated non-resident digital service providers, covering the period of July, 2026.
The first return with the increased rate should be filed, and the corresponding tax remitted by August 20, 2026.