Stamp Duty in Zanzibar

Stamp duty is a tax levied on legal documents, instruments, and transactions to make them legally enforceable. In Zanzibar, stamp duty is governed under The Stamp Duty Act No. 6 of 1996 and its amendments. Among the various dutiable instruments, business receipts are a common category subject to stamp duty, often overlooked by small businesses and traders.

Any person on a business or profession in Zanzibar who receives a sum of money of one thousand shillings or more in consideration of receipt and sale of any goods or services in Zanzibar shall issue a dully stamped receipt for the sum so received, whether demanded or not.
Any person selling goods or services on credit in Zanzibar shall issue a dully stamped bill of sale entering the particulars as specified whether demanded or not.

Stamp duty is imposed and collected on;

• The supply of goods and services in Zanzibar by a taxable person
• Supply of goods and services exempted under the second schedule of the VAT Act
• For all instruments specified under the first to fourth schedule of the stamp duty Act

Charging rates

• Lump sum scheme under taxable supplies made on quarterly basis-
  • Turnover below TZS 5million – Nil
  • Turnover between TZS 5million to TZS 10million – TZS 100,000
  • Turnover between TZS 10million to TZS 15million – TZS 200,000
• Turnover scheme – monthly stamp duty
  • Turnover above TZS 15million up to before VAT registration threshold – 2% of the total supply
• Others
  • Various rates – First and third schedule

Returns

• Persons liable to stamp duty is required to file monthly return

• Time of stamping documents
  • Within thirty days after the execution date
• Time of payment and filing returns
  • Within 20days from the end of relevant month

For more inquiries and information on stamp duty reach us out through info@auditaxinternational.co.tz