Introduction

Through the Finance Act, No. 4 of 2017 the Parliament amended the Gaming Act, Cap 166 of the Laws of Tanzania and gave Tanzania Revenue Authority (TRA) mandate to collect Gaming Tax with effect from 1st July, 2017. With these changes, TRA is now responsible for assessing, collecting and accounting for Gaming Tax Revenues.

 Definition of Terms

Gaming activities means any game played with cards, dice, equipment or any mechanical, electromechanical or electronic device or machine for money, property, checks, credit or credit card or any representative of value, including but without limiting the generality of the foregoing, bingo, wheel of fortune, baccarat, slot machine, horse race, lottery, wager or stake, any banking or percentage game or any other game or device approved by the Board

Gaming activities does not include games played with cards in private homes or residences in which no person makes money for operating the game.

Types of Operations

The Gaming tax is charged on six types of gaming activities namely Casinos, Sports Betting, SMS Lottery, National Lottery, Slots (Route) Operations and Forty Machines Site.

GBT issues different types of licenses to different operators to conduct gaming activities in the country on yearly basis. 

Filling Of Returns

The modality in filing returns and collection procedures of Gaming Tax depends on the type of the operator.

For Casinos: - filing of returns for land based and internet casinos is done on weekly basis as per amendment in Finance Act, 2013.

While the rest which including Sports Betting, SMS Lotteries, National Lottery, Slot Machines/ Route Operations and Forty Machines Site the filing of returns is done on monthly basis.

 

 

 Gaming Tax.

  A.                    Casino                                                   Rate Applicable

i)

Land based Casino operation

18% of the gross gaming revenue

ii)

Internet casino

25% of the gross winning

 

Winners tax

 

i)

Gaming tax

20% for all games except Casino

ii)

Gaming tax on Casino

12% of the gross revenue

    B.                      Types of Games                                Gaming Tax

1.

Sport betting

25% of Gross Gaming Revenue (GGR)

2.

SMS Lotteries

25% of  Gross Gaming Revenue (GGR)

3.

Slot Machines

Tshs 100,000 per machine per month

4.

National Lotteries

25% of Gross Gaming Revenue (GGR)

5.

Forty Machines Sites

25% of Gross Gaming Revenue (GGR)

Mode of Payment and Collections

Taxpayer does registration for payment in Revenue Gateway System (RGS) to get order form with control number. Then the taxpayer has to submit the signed order form with control number by signatory(s) to Commercial Bank for payment process. 

The Commercial Bank use the signed order form submitted by Taxpayer to post payment to designated TRA Bank accounts. The threshold below five (5) Million can be posted to Commercial Banks account and above five (5) Million should be transacted through TISS to BOT Account.  

Item

GFS code

ABRE

Description

440

1121124

GEM

Gaming tax

440

11440107

SBS

Sports betting on stakes (sales)

440

11440108

SBW

Sports betting on winnings

440

11440109

SRO

Slots (route) operations

440

11440110

SMS

SMS Lotteries

440

11440111

NAL

National Lotteries

440

11440112

GGR

Tax on Casino Gross Gaming Revenue

440

11440113

COW

Tax on Casino Winnings

440

11440114

FMS

Forty Machines site

 

Stakeholders/Taxpayers in the gaming industry are directed to observe the following

 >To comply and pay gaming taxes to TRA according to existing applicable rates;

 >To register and obtain Taxpayer Identification Number (TIN) for those who are not registered as such.

 >To fill and submit gaming tax returns to TRA Offices in the Tax Region where TIN is registered.

 >To use the GFS Codes specified below when making payments of gaming tax due to TRA and in accordance with the type of gaming activity conducted by gamers