Tanzania’s approach to cryptocurrency taxation has changed from discouragement of virtual currency use toward formal legislative recognition.
In November 2019, the Bank of Tanzania (BOT) issued a public warning against virtual currency trading, creating a period of regulatory uncertainty. That position has since shifted, especially because the Finance Act of 2024, which came into effect on 1 July 2024, amended the Income Tax Act 2019 to introduce a specific withholding tax on digital asset transactions, making Tanzania one of the first East African nations to legislate directly on crypto taxation.
The Finance Act 2024 imposes a 3% withholding tax on payments made to persons who own or facilitate digital asset exchange platforms. This measure targets platform operators and intermediaries rather than individual investors directly, representing a transaction-level tax rather than a profit-based tax on gains
Capital Gains Tax Rules
Tanzania does not currently operate a dedicated capital gains tax regime for individuals holding cryptocurrency as an investment asset. The Finance Act 2024 introduces a withholding tax targeted at platform operators, but does not establish a framework for taxing individual gains arising from the disposal of crypto holdings.
As of 2026, Tanzania has not issued specific guidance on whether individual profits from crypto trading are treated as capital gains or ordinary income.
How tax is applied to gains
Applying general principles under the Income Tax Act 2019, 9% – 30% of the total income in excess of Tshs. 8,640,000, any profit arising from the regular trading of cryptocurrency could be characterised as business income and subject to personal or corporate income tax at the applicable rates.
However, in the absence of specific guidance, casual investors who occasionally sell digital assets are in a legally uncertain position with respect to the classification of any gain. The TRA has signalled through the High Court litigation that crypto activity is taxable, but the precise mechanism for assessing individual investor gains has not been codified.
Record keeping
Despite the absence of a comprehensive framework, individuals and businesses engaging in crypto transactions in Tanzania have to maintain full records of all transactions, including acquisition costs, dates, disposal proceeds, and the identity of counterparties or platforms.
This documentation will be essential if the TRA issues further guidance requiring retrospective reporting, or if a taxpayer is subject to audit.
As of 2026, Tanzania has not issued specific guidance on record-keeping periods for crypto, but general tax record-keeping obligations under the Income Tax Act 2019 require records to be maintained for a minimum of five years.
Income Tax Rules
Under the Income Tax Act 2019, income from any source is in principle subject to income tax in Tanzania.
The Finance Act 2024 confirms this by specifically amending the Act to address digital asset exchange activities. For platform operators and facilitators, the 3% withholding tax on payments received represents a final or provisional tax charge at the point of payment, with the precise integration of this withholding into the broader income tax assessment system subject to further TRA guidance.
For individuals receiving cryptocurrency as payment for goods, services, or employment, general income tax principles would apply, 9% to 30% of the total income in excess of Tshs. 8,640,000, with the value of the crypto at the time of receipt treated as taxable income in the relevant assessment year. Tanzanian residents are subject to progressive personal income tax rates on their total taxable income, and crypto receipts would be expected to form part of that aggregate.
As of 2026, Tanzania has not issued specific guidance on the income tax treatment of staking rewards, DeFi returns, airdrops, or other forms of crypto yield beyond the withholding tax on platform payments.
Until dedicated guidance is issued, taxpayers should adopt a conservative approach and treat all crypto income receipts as taxable in the year of receipt, converted to Tanzanian Shillings (TZS) at the prevailing exchange rate.
Mining and Staking Treatment
Mining
Tanzania has not issued specific tax guidance on cryptocurrency mining as of 2026.
Under the general provisions of the Income Tax Act 2019, income derived from business activities would be subject to corporate or individual income tax at the applicable rates. Mining operations that involve regular commercial activity would most likely be treated as a business, with profits calculated as receipts less allowable expenses including equipment costs and electricity. The classification of a mining operation as a business versus a casual activity would affect the deductibility of expenses and the applicable tax rate.
When mined cryptocurrency is subsequently sold or exchanged, any additional gain realised above the value at which the tokens were originally brought to account as income would represent a further taxable event. Tanzania has not enacted a specific provision for this second-stage taxation, and the treatment would follow general income or business tax principles pending further guidance from the TRA.
Staking
As of 2026, Tanzania has not issued specific guidance on the taxation of staking rewards.
Applying general income tax principles, staking rewards received as compensation for participating in a blockchain network would most likely be treated as ordinary income at the point of receipt, with the fair market value in TZS at the date of receipt constituting the taxable amount.
Any gain realised on subsequent disposal of staked tokens would be subject to further assessment based on the general income tax framework. Tanzania has not issued specific guidance on DeFi staking or liquidity provision as of 2026.
NFT Taxation
Tanzania has not issued specific guidance on the taxation of NFTs as of 2026.
Given the early stage of Tanzania’s digital asset regulatory framework, NFT transactions would be assessed under general income tax principles rather than any bespoke regime. An investor purchasing and selling NFTs at a profit would in principle be liable to tax on any gain under the Income Tax Act 2019, with the character of that income depending on the frequency and commercial nature of the activity.
For creators minting and selling NFTs as part of a commercial enterprise, receipts would constitute business income subject to income tax in the year of receipt. Recurring royalty income from secondary sales would similarly be taxable as it arises.
Reporting Requirements
Individual and corporate taxpayers in Tanzania are required to file annual income tax returns with the Tanzania Revenue Authority.
Business income, which encompasses active crypto trading, must be declared in the standard income tax return using the appropriate schedule for business activities. The TRA administers assessments through its online portal and regional offices.
Amounts must be converted to Tanzanian Shillings for tax reporting purposes. Taxpayers should use the exchange rate published by the Bank of Tanzania at the relevant transaction date.
Where a taxpayer has received crypto income or conducted crypto transactions but the TRA has not yet issued specific reporting forms or schedules for digital assets, such income should be declared using the most relevant existing category within the standard tax return and supplemented with a supporting schedule prepared by the taxpayer.
As of 2026, Tanzania has not announced a specific timeline for implementing the OECD Crypto-Asset Reporting Framework (CARF), but the trajectory of the Finance Act 2024 suggests growing regulatory engagement with digital assets. Record-keeping obligations under the general tax framework require documents to be retained for a minimum of five years.
Penalties
The penalty regime under Tanzania’s Tax Administration Act applies to all categories of taxpayer, including those with undisclosed crypto income or transactions. Failure to declare income can result in penalties of up to 100% of the understated tax liability, plus interest. Deliberate evasion may attract criminal prosecution under the Income Tax Act 2019 and related legislation.
Interest on unpaid tax accrues at the statutory rate from the date the tax was due until the date of payment. In cases where returns are filed late, a late filing penalty is also levied, typically calculated as a fixed amount or percentage of the tax outstanding. These charges can compound significantly where large crypto positions have been held and disposed of without reporting.
Voluntary disclosure before a TRA audit or investigation is initiated offers the best prospect of reduced penalties. Tanzania’s tax administration framework encourages taxpayers to correct omissions proactively, and the TRA has discretion to reduce or waive penalties in cases of genuine disclosure.
Given the evolving nature of Tanzania’s crypto tax rules, taxpayers who have not reported digital asset income should seek professional advice about the appropriateness of making a voluntary disclosure.
