AuthorBy Jeffrey Cammack
Updated: January 14, 2022
Tax Implications for Tanzanian Forex traders Who Reside in Tanzania

Many Tanzanian forex traders are not sure what their legal tax obligations are towards the Tanzania Revenue Authority  (TRA). Most trading accounts are overseas, and the gains made from their trading are not visible to TRA, some traders open trading accounts with forex brokers located in Tanzania, or with brokers who have branches in Tanzania. In this case, these traders’ capital won’t leave the country.

Trader Must Pay Tax On Earnings

It is a common misperception that traders don’t need to pay income tax on profits made in offshore trading accounts. If a Tanzanian resident generates profit from trading in an offshore trading account while residing within the borders of Tanzania, the profit is regarded as normal taxable income and needs to be declared in their tax returns. In this case, it doesn’t matter where the income originates from, but rather where the person resides while generating that income.

Tax Rates for Individual Traders and Special Trusts

Forex traders who trade in their individual capacity and special trusts are subject to the income tax in accordance with TRA’s Income tax for individuals.

 

This article is a general guide only and is not intended as individual legal tax advice. For more specific information on Tanzanian tax legislation please consult a registered tax practitioner or the Tanzania Revenue Authority.

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