MLIMANI HOLDINGS LIMITED VS. THE COMMISSIONER GENERAL CIVIL APPEAL NO. 265 OF 2021.

Abstract

(i) The service fees the appellant paid to MDS Architecture did not constitute part of the business profits of the payee and thus liable to 13 withholding tax in Tanzania. Consequently, as the appellant did not remit the withholding tax in accordance with section 83 (1) (b) of the Act, the respondent was entitled to issue the impugned withholding tax certificates as he did. (ii) The Appellant had no obligation to deduct from the fees paid to the foreign consultant withholding tax payable to the Respondent, hence, the demands in the withholding tax certificates in the amount of TZS. TZS 346, 462,916.00 were invalid and vice versa.