CHAPTER 189
STAMP DUTY ACT

[PRINCIPAL LEGISLATION]

ARRANGEMENT OF SECTIONS

   Section

Title

PART I
PRELIMINARY PROVISIONS

   1.   Short title.

   2.   Interpretation.

   3.   Commissioners.

   4.   Stamp Duty Officers.

PART II
STAMP DUTIES

(a) Instruments Chargeable with Stamp Duty

   5.   Instruments specified in the Schedule chargeable.

   6.   Several instruments used in a single transaction.

   7.   Instruments relating to several distinct matters.

   8.   Instruments coming within several descriptions in the Schedule.

(b) Composition of Duties

   9.   Composition of duty on receipts.

   10.   Composition on the basis of specific sum.

   11.   Agreement to compound duty on cheques.

   12.   Terms implied in composition agreement.

   13.   Power to compound duties.

   14.   Moneys due under composition agreement to be Government debt.

   15.   Power of Commissioner to estimate duty payable.

(c) Exemptions

   16.   Minister may exempt chargeable instrument.

   17.   Permanent Secretary may accept fixed sum in lieu of duty on instrument.

(d) Stamps and Mode of Using Them

   18.   Duties, how to be paid.

   19.   Where adhesive stamps used.

   20.   Instruments stamped with impressed stamps, how to be written.

   21.   Only one instrument to be on same stamp.

   22.   Instrument written contrary to section 19 or 20 deemed unstamped.

   23.   Certificate denoting duty or exemption.

   24.   Provisions as to duplicates and counterparts.

(e) Time When Instruments Must be Stamped

   25.   Instruments executed in Tanzania.

   26.   Instruments executed outside Tanzania.

   27.   Bills, cheques and notes drawn outside Tanzania.

   28.   Special provisions for any particular class of instruments.

(f) Valuation of Stamp Duty

   29.   Conversion of amount expressed in foreign currencies.

   30.   Stock and marketable securities, how to be valued.

   31.   Effect of statement of rate of exchange or average price.

   32.   Instruments reserving interest.

   33.   Duty on mortgages of marketable securities.

   34.   Duty on transfer in consideration of debt, or subject to future payment, etc.

   35.   Valuation in case of annuity, etc.

   36.   Claims under certain instruments limited by value of stamp.

   37.   Facts affecting duty to be set forth in instrument.

   38.   Direction as to duty in case of certain conveyances.

   39.   Duty in case of certain contracts and agreements.

   40.   Transfers between associated corporations.

(g) Persons Liable to Pay Duty

   41.   Duties, by whom payable.

   42.   Obligation to give receipt in certain cases.

PART III
ADJUDICATION OF STAMP DUTY

   43.   Adjudication.

   44.   Certificate by Stamp Duty Officer.

PART IV
INSTRUMENTS NOT DULY STAMPED

   45.   Examination and impounding of instrument.

   46.   Special provision as to unstamped receipts.

   47.   Instruments not duly stamped inadmissible in evidence.

   48.   Instruments impounded, how dealt with.

   49.   Stamp Duty Officer may refund penalty paid under section 48(1).

   50.   Stamp Duty Officer may stamp instruments impounded.

   51.   Instruments unduly stamped by accident.

   52.   Endorsement of instruments on which duty has been paid under sections 47, 50 and 51.

   53.   Proceedings under this Part not to bar prosecution.

   54.   Persons paying duty or penalty may recover same in certain cases.

   55.   Power of Commissioners to refund penalty or excess duty in certain cases.

   56.   Non-liability for loss of instruments sent under section 48.

   57.   Power of payer to stamp bills, promissory notes and cheques received by him unstamped.

   58.   Appeals to the Tax Revenue Appeals Board.

   59.   Instruments tendered in primary courts.

PART V
ALLOWANCES FOR STAMPS

   60.   Allowances for spoiled stamps.

   61.   Application for relief under section 60, when to be made.

   62.   Allowance by Commissioners and Permanent Secretary.

   63.   Allowance for misused stamps.

   64.   Allowance for spoiled or misused stamps, how to be made.

   65.   Allowance for stamps not required for use.

   66.   Allowance on renewal of certain debentures.

PART VI
REFERENCE AND REVISION

   67.   Control of Commissioners.

   68.   Statement of case by Commissioners to Tax Revenue Appeals Board.

   69.   Power of Tax Revenue Appeals Board to call for further particulars as to the case stated.

   70.   Procedure in disposing of case stated.

   71.   Statement of case by other courts to High Court.

   72.   Revision of certain decisions of courts regarding the sufficiency of stamps.

PART VII
OFFENCES

   73.   Offences relating to stamp duty.

   74.   Where offence is committed by body corporate.

   75.   Liability of employer or principal.

   76.   Permanent Secretary may compound offence.

   77.   Burden of proof.

PART VIII
COLLECTION AND RECOVERY OF STAMP DUTY

   78.   Appointment and duties of agent.

   79.   Deceased persons.

   80.   Collection of stamp duty from person leaving or having left the United Republic.

   81.   Collection of duty from guarantor.

   82.   Collection of stamp duty by distraint.

   83.   Security on property for unpaid duty.

   84.   Collection of stamp duty from shipowner.

PART IX
MISCELLANEOUS PROVISIONS

   85.   Power of inspection.

   86.   Regulations.

PART X
REPEAL AND SAVINGS

   87.   [Definition of R.L. Cap. 189.]

   88.   [Repeal of R.L. Cap. 189.]

   89.   Savings.

   90.   [Transitional provisions.]

SCHEDULE

CHAPTER 189
THE STAMP DUTY ACT

An Act to provide for stamp duty and for related matters.

[1st July, 1972]

Acts Nos:
20 of 1972
9 of 1977
12 of 1979
25 of 1980
8 and 16 of 1983
15 of 1985
10 of 1986
6 and 10 of 1987
9 of 1988
13 of 1989
18 of 1991
16 of 1992
3 and 10 of 1993
16 of 1994
13 of 1996
24 of 1997
8 of 1998
15 of 2000
10 of 2002
18 of 2002

PART I
PRELIMINARY PROVISIONS (ss 1-4)

1.   Short title

   This Act may be cited as the Stamp Duty Act.

2.   Interpretation Acts Nos. 10 of 1993; 16 of 1994">

   In this Act, unless the context otherwise requires–

   "banker" includes a bank and any person acting as a banker;

   "bill of exchange" means a bill of exchange as defined by the Bills of Exchange Act * and includes a draft, order, cheque, letter of credit, and any other document, entitling or purporting to entitle any person, whether named or not, to payment by any other person of, or to draw upon any other person for, any sum of money;

   "bill of lading" means any instrument signed by the owner or master of a ship or vessel or by the agent of the owner, which states that certain specified goods have been shipped upon a particular ship or vessel and which purports to set out the terms on which such goods have been delivered to and received by the ship or vessel, and includes the document commonly known as "through bill of lading" but does not include a mate's receipt;

   "bond" includes–

   (a)   any instrument whereby a person obliges himself to pay money to another, on condition that the obligation shall be void if a specified act is performed, or is not performed, as the case may be;

   (b)   any instrument (other than a bill of exchange or promissory note) attested by a witness and not payable to order or bearer, whereby a person obliges himself to pay money to another; and

   (c)   any instrument so attested, whereby a person obliges himself to deliver grain or other agricultural produce to another;

   "chargeable" means, as applied to an instrument executed or first executed after the commencement of this Act, chargeable under this Act, and, as applied to any other instrument, chargeable under the written law in force in Tanzania when such instrument was executed, or where several persons executed the instrument at different times, first executed;

   "cheque" means a bill of exchange drawn on a specified banker and not expressed to be payable otherwise than on demand;

   "Commissioners" means the Commissioners of Stamp Duty appointed under the provisions of section 3;

   "composition agreement" means an agreement entered into pursuant to the provisions of sections 9, 10 or 11;

   "compounded duty" means any stamp duty payable under a composition agreement, and includes any sum payable pursuant to an order under section 13 and also includes any additional compounded duty or any penalty payable or failure to pay compounded duty or additional compounded duty on due date;

   "Conveyance" includes a conveyance on sale and every instrument by which property, whether movable or immovable is transferred inter vivos and which is not otherwise specifically provided for by the Schedule hereto; and also a decree or order for, or having the effect of an order, for foreclosure;

   "duly stamped", as applied to an instrument, means that the instrument bears an adhesive or impressed stamp of not less than the proper amount and that such stamp has been affixed or used in accordance with the law for the time being in force in Tanzania;

   "executed" and "execution" used with reference to instruments, means "signed" and "signature";

   "Government" means the Government of the United Republic;

   "impressed stamp" includes–

   (a)   labels affixed and impressed by a proper officer;

   (b)   stamps embossed or engraved on stamped paper;

   (c)   adhesive stamps over-embossed;

   "instrument" includes every document by which any right or liability is, or purports to be, created, transferred, limited, extended, extinguished or recorded;

   "instrument of partition" means any instrument whereby co-owners of any property divide or agree to divide such property in severalty, and includes also a final order for effecting a partition passed by an civil court and an award by a arbitrator directing a partition;

   "lease" means a lease of immovable property, and includes also–

   (a)   a certificate of occupancy;

   (b)   a grant for a term of the right to use and enjoy any easement, profit à prendre, or incorporeal right;

   (c)   any instrument by which tolls of any description are let;

   (d)   any writing on an application for a lease intended to signify that the application is granted;

   "marine policy" means any insurance (including reinsurance) made upon any ship or vessel (whether for marine or inland navigation) or upon the machinery, tackle or furniture of any ship or vessel, or upon any goods, merchandise, or property of any description whatever on board of any ship or vessel, or upon the freight of, or any other interest which may be lawfully insured in, or relating to, any ship or vessel and includes any insurance of goods, merchandise or property for any transit which includes not only a sea risk, but also any other risk incidental to the transit insured from the commencement of the transit to the ultimate destination covered by the insurance, and where any person, in consideration of any money paid or to be paid for additional freight or otherwise, agrees to take upon himself any risk attending goods, merchandise or property of any description whatsoever while on board of any ship or vessel, or engages to indemnify the owner of any such goods, merchandise or property from any risk, loss or damage, such agreement or engagement shall be deemed to be a contract for marine insurance;

   "Minister" means the Minister responsible for finance;

   "mortgage deed" includes every instrument whereby for the purpose of securing money advanced, or to be advanced, by way of loan, or an existing or future debt, or the performance of an engagement, one person transfers, or creates, to or in favour of another, a right over or in respect of specified property, and for the purposes of this Act includes a charge under the Land Registration Act *;

   "paper" includes vellum, parchment, or any other material on which an instrument may be written;

   "Permanent Secretary" means the Permanent Secretary to the Treasury and includes, in relating to any function conferred upon the Permanent Secretary by this Act, any person to whom the Permanent Secretary has, by writing, delegated such function;

   "person with whom a composition agreement has been entered into" includes such person's personal representatives, assigns and attorneys;

   "policy of insurance" includes–

   (a)   a policy of insurance upon any life or lives or upon any event or contingency relating to or depending upon any life or lives;

   (b)   a policy of insurance against accident,

and for the purposes of this Act "a policy of insurance against accident or an accident policy" means a policy of insurance for any payment agreed to be made upon the death of any person only from accident or violence or otherwise than from a natural cause, or as compensation for personal injury, or during the sickness of any person, or his incapacity from personal injury, or by way of indemnity against loss or damage to any property, and includes any notice or advertisement in a newspaper or other publication which purports to insure the payment of money upon the death of, or injury to, or sickness or incapacity of, or loss or damage to, property of the holder or bearer of the newspaper or publication containing the notice or advertisement only from accident or violence or otherwise than from natural cause;

   "power of attorney" includes any instrument empowering a specific person to act for and in the name of the person executing it;

   "promissory note" means a promissory note as defined by the Bills of Exchange Act *; it also includes a note promising the payment of any sum of money out of any particular fund which may or may not be available, or upon any condition oR contingency which may or may not be performed or happen;

   "proper officer" in relation to any function means the Permanent Secretary, a Commissioner or a Stamp Duty Officer upon whom such function is conferred or to whom such function has been delegated under this Act, and where such function has not been specifically conferred upon any of such persons, the Permanent Secretary or a Stamp Duty Officer;

   "receipt" includes any note, memorandum or writing–

   (a)   whereby any money, or any bill of exchange, cheque, or promissory note is acknowledged to have been received; or

   (b)   whereby any other movable property is acknowledged to have been received in satisfaction of a debt; or

   (c)   commonly known as "cash sale" and given to any person making any payment or giving any bill of exchange, cheque or promissory note; or

   (d)   whereby any debt or demand, or any part of a debt or demand, is acknowledged to have been satisfied or discharged; or

   (e)   which signifies or imports an acknowledgement of any debt or demand, whether the same is or is not signed with the name of any person;

   "specified country" means any country which the Minister may, by notice in the Gazette, declare to be a specified country for the purposes of the Act or of such provision of this Act as may be specified in such order;

   "settlement" means any non-testamentary disposition in writing of movable or immovable property made–

   (a)   in consideration of marriage;

   (b)   for the purpose of distributing property of the settlor among his family or those whom he desires to provide, or for the purpose of providing for some person dependent on him; or

   (c)   for any religious or charitable purpose, and includes an agreement in writing to make such a disposition, and, where any such disposition has not been made in writing, any instrument recording, whether by way of declaration of trust or otherwise, the terms of any of such disposition;

   "Stamp Duty Officer" means a Stamp Duty Officer appointed under section 4;

   "tribute agreement" means any instrument by which the holder of a claim or mining lease agrees to allow another person to work the claim or lease, or part thereof, in return for a proportion of the value of production or profits of working.

3.   Commissioners

   The Minister may, by notice in the Gazette, appoint not less than two and not more than five public officers to be Commissioners for Stamp Duty.

4.   Stamp Duty Officers

   The Permanent Secretary may, by notice in the Gazette, appoint such number of public officers as he may deem fit to be Stamp Duty Officers for the purposes of this Act and may, by such order or any subsequent order, delegate to a Stamp Duty Officer all or any of his functions or the functions of the Commissioners.

PART II
STAMP DUTIES (ss 5-42)

(a) Instruments Chargeable with Stamp Duty (ss 5-8)

5.   Instruments specified in the Schedule chargeable Acts Nos. 16 of 1994 s. 62; 13 of 1996 s. 48">

   (1) Every instrument specified in the Schedule to this Act and which–

   (a)   is executed in Tanzania; or

   (b)   if executed outside Tanzania, relates to any property in Tanzania or to any matter or thing to be performed or done in Tanzania,

shall be chargeable with duty of the amount specified or calculated in the manner specified in that Schedule in relation to such instrument:

   Provided that–

      (i)   before calculating the stamp duty payable in accordance with article 51 of the Schedule to this Act on a receipt issued by the manufacturer of locally manufactured goods which are chargeable to Value Added Tax in accordance with the Value Added Tax Act * or to Excise Duty pursuant to the Excise (Management and Tariff) Act *, the whole of the sales tax and the excise duty shall be deducted from the gross sum;

      (ii)   no duty shall be chargeable in respect of any instrument executed by, or on behalf of, or information of the Government in cases where, had this paragraph not been enacted, the Government would be liable to pay the duty chargeable in respect of such instrument;

      (iii)   no duty shall be chargeable in respect of any instrument which is exempt from stamp duty by virtue of any provision of this Act or of an order made under section 16 or section 17 or by virtue of any other written law;

      (iv)   a bill of exchange, cheque or promissory note drawn or made in a specified country and accepted or paid or presented for acceptance or payment, or endorsed, transferred or otherwise negotiated, in Tanzania, and which has previously been duly stamped in the specified country in which it was drawn or made shall be deemed to be duly stamped for the purposes of this Act;

      (v)   no power, warrant or letter of attorney granted or to be granted by the Postmaster General, nor any power, warrant or letter of attorney given by a depositor in the savings bank to any other person, authorising him to make any deposit of any sum of money in the savings bank on behalf of the said depositor or to sign any document or instrument required by the rules or regulations of the savings bank to be signed on making such deposit or to receive back any sum of money deposited in the savings bank, or the interest arising therefrom, nor any receipt nor any entry in any book of receipts for money deposited in the savings bank, nor for any money received by any depositor, his executors or administrators, assigns, attorneys or agents, from the funds thereof, nor any draft or order nor any appointment of any agent, nor any certificate, or other instrument or document whatsoever required or authorised to be given, issued, signed, made or produced in pursuance of the Bank of Tanzania Act * or of any rules made thereunder, shall be subject to, or be charged with any stamp duty or duties whatsoever;

      (vi)   where a company incorporated in Tanzania acquires all the undertaking in Tanzania of a company incorporated outside Tanzania no duty shall be payable on any conveyance or transfer to such Company of any of the property comprised in such undertaking at the time of such acquisition.

   (2) For the purposes of paragraph (v) of subsection (1) "savings bank" means the Savings Bank established by the Tanzania Postal Bank Act *.

   (3) The Minister may by notice published in the Gazette, add to, vary or amend the Schedule.

6.   Several instruments used in a single transaction Act No. 18 of 2002 s. 48">

   (1) Where, in the case of any sale, mortgage or settlement, several instruments are employed for completing the transaction (whether executed at the same time or at different times) the principal instrument only shall be chargeable with the duty prescribed in the Schedule to this Act for the conveyance, mortgage or settlement, as the case may be, and each of the other instruments shall be chargeable with a duty of one thousand five hundred shillings instead of the duty (if any) prescribed for it in that Schedule.

   (2) The parties may determine for themselves which of the instruments so employed shall, for the purposes of subsection (1) of this section, be deemed to be the principal instrument:

   Provided that the duty chargeable on the instrument so determined shall be the highest duty which would be chargeable in respect of any of such instrument so employed.

   (3) Any instrument modifying the terms of a mortgage in respect of the reduction of principal or raising or reducing the rate of interest or varying the term for the repayment of principal shall be chargeable as an agreement.

   (4) Where upon receipt of a payment, both a cash sale and a receipt is issued, only one of such instruments shall be chargeable with duty.

7.   Instruments relating to several distinct matters

    Any instrument comprising or relating to several distinct matters shall be chargeable with the aggregate amount of the duties with which separate instruments, each comprising or relating to one of such matters, would be chargeable under this Act.

8.   Instruments coming within several descriptions in the Schedule

   Subject to section 7 an instrument so framed as to come within two or more of the descriptions in the Schedule to this Act shall, where the duties chargeable thereunder are different, be chargeable only with the highest of such duties:

   Provided that nothing in this Act contained shall render chargeable with duty exceeding ten shillings a counterpart or duplicate of any instrument chargeable with duty and in respect of which the proper duty has been paid.

(b) Composition of Duties (ss 9-15)

9.   Composition of duty on receipts Acts Nos: 15 of 1985 s. 6; 10 of 1987 s. 47; 18 of 1991 s. 59; 3 of 1993 s. 17; 13 of 1987 s. 48; 13 of 1996 s. 48">

   (1) Every businessman who makes a yearly sales turnover of not less than one million shillings shall enter into an agreement in writing with the Permanent Secretary requiring such person to pay within twenty-one days of the expiry of each prescribed period provided for in the agreement, a compounded duty of a specified percentage of the aggregate of the sum of money received by such person during such period, save that where under this section a person not required to enter into Agreement shall pay a stamp duty of twelve shillings for every one thousand shillings.

   (2) Any person who enters into an agreement with the Permanent Secretary but whose yearly sales turnover is less than two hundred and fifty thousand shillings shall pay twelve shillings for every one thousand shillings.

   (3) Where a composition agreement under this section has been entered into with any person, all receipts issued by such person shall be exempt from stamp duty.

   (4) The Permanent Secretary may, in any composition agreement, provide for a prescribed period of one month or of two or more months.

   (5) Where any person with whom a composition agreement under this section has been entered into, fails to pay to the Permanent Secretary or a Stamp Duty Officer designated by the Permanent Secretary for the purpose, the compounded duty payable in relation to a prescribed period within twenty-one days from the date on which such prescribed period expires, he shall, in addition to the compounded duty, be liable to pay a sum of money equal to twenty-five per centum of such compounded duty by way of penalty plus two per centum cumulative rate per month or part thereof during which compounded duty remains unpaid.

   (6) The Permanent Secretary may, in any case, remit in whole or in part, the penalty payable under subsection (4).

   (7) Every person with whom a composition agreement under this section has been entered into shall, with every payment of compounded duty, submit a return of the sums of moneys received by him during the prescribed period to which such payment relates.

   (8) For the purposes of this section "specified percentages" means–

   (a)   in relation to sales of cigarettes, oil fuel, beer, spirits and soft drinks and sales by the National Milling Corporation means two shillings and forty cents for every one thousand shillings or any part thereof;

   (b)   in respect of receipts in all other businesses, twelve shillings for every one thousand shillings or any part thereof.

10.   Composition on the basis of specific sum Act No. 18 of 1991 s. 59">

   (1) It shall be lawful for the Permanent Secretary, in any case in which he considers fit so to do, to enter into an agreement providing for a compounded duty of a specified sum of money being payable in lieu of stamp duties on chargeable instruments of a category described in the agreement and which are likely to be given by the person with whom such agreement is entered into during any prescribed period.

   (2) Where a composition agreement under this section has been entered into in respect of any category of instruments, all instruments given or issued by the person with whom such agreement is entered into and which fall within such category shall be exempt from stamp duty.

   (3) The compounded duty payable in respect of any prescribed period under any agreement entered into under this section shall be payable within fourteen days of the commencement of the prescribed period and, if not so paid, the person with whom it is entered into shall be liable to pay, in addition to such compounded duty, a sum equal to twenty-five per centum of such compounded duty by way of penalty plus two per centum cumulative rate per month or part thereof during which such compounded duty remains unpaid:

   Provided that the proper officer may, in any case, remit in whole or in part any such penalty.

   (4) It shall be lawful for the Permanent Secretary to enter into a composition agreement which, in lieu of requiring payment of compounded duty in advance, requires the person with whom it is entered to pay a deposit of such sum as the Permanent Secretary may specify, and to pay at the end of each prescribed period a compounded duty of a sum equal to the aggregate of duties payable in respect of all such chargeable instruments to which the agreement relates and which are given or issued by him during the prescribed period.

   (5) A deposit paid under subsection (4) shall be refunded to the person with whom the agreement is entered into upon termination of the agreement:

   Provided that it shall be lawful for the Permanent Secretary to apply such deposit or any part thereof towards any duty, compounded duty or penalty due from such person.

   (6) In section 9 and in this section "prescribed period" means any period of one calendar month or of two or more calendar months as may be specified in the agreement and commencing from the first day of the month or months specified in the agreement.

11.   Agreement to compound duty on cheques

   (1) The Permanent Secretary may by agreement with any banker provide for the composition of the duty payable on any cheque drawn on such banker on a cheque form issued or adopted by such banker or any other chargeable instrument issued, given or received by such banker.

   (2) Such agreement shall be in such form and for such duration and shall contain such terms and conditions as the Permanent Secretary may think proper.

   (3) During the continuance in force of any composition agreement under this section any cheque or other chargeable instrument to which the agreement relates shall be deemed to be properly stamped.

12.   Terms implied in composition agreement

   It shall be an implied term of every composition agreement entered into under this Act that–

   (a)   if in consequence of any amendment of this Act or in consequence of this Act being repealed and replaced–

      (i)   any duty payable on the chargeable instruments or any category of such instruments to which the agreement relates is raised;

      (ii)   any category of instruments which were not chargeable when the agreement was entered into become chargeable and by virtue of the provisions of the agreement will remain exempt,

      the Permanent Secretary shall be entitled to terminate the agreement unless the person with whom it is entered into agrees to such amendment or variation thereof as the Permanent Secretary may direct;

   (b)   the proper officer shall be entitled, by notice in writing, to terminate an agreement in the event of contravention by the person with whom it is entered of any of its terms or of any provision of this Act or of regulations made thereunder.

13.   Power to compound duties

   The Permanent Secretary may, by order, provide for the composition or consolidation of duties in the case of issue by any body corporate of debentures, bonds or other securities.

14.   Moneys due under composition agreement to be Government debt

   Any sum of money due under a composition agreement, or an order under section 13 whether by way of compounded duty, additional compounded duty or penalty shall be a debt due to the United Republic and, without prejudice to the provisions of section 58, may be recovered by a suit by the Permanent Secretary or any person authorised by him in that behalf.

15.   Power of Commissioner to estimate duty payable Act No. 10 of 1986 s. 43">

   (1) Where the Permanent Secretary is satisfied that any person who is liable to pay duty under this Act evades it or so manages his affairs that he makes it difficult for the duty payable by him to be ascertained or paid, he may, according to the best of his judgment, estimate the monthly duty payable by such person.

   (2) Where the Permanent Secretary determines the monthly duty payable by any person under subsection (1), the duty shall be deemed to be the duty payable by that person for the period prior to the determination, and shall thereafter be the duty payable monthly by that person until such time as the Permanent Secretary is satisfied that the reasons for the estimation and determination of duty payable under this section have ceased to exist.

[s. 14A]

(c) Exemptions (ss 16-17)

16.   Minister may exempt chargeable instrument

   (1) The Minister may, by notice in the Gazette, exempt any chargeable instrument, or any category, class or description of such instruments, from stamp duty.

   (2) Where an order under subsection (1) is expressed to have retrospective effect, any instrument specified in the order or, as the case may be, any instrument of the category, class or description specified in the order, and given, issued or executed on or after the date specified in the order shall be deemed not to have been a chargeable instrument.

[s. 15]

17.   Permanent Secretary may exempt fixed sum in lieu of duty on instrument

   (1) Where in relation to any transaction or a series of transactions any person is required to give, issue or execute a number of chargeable instruments, the Permanent Secretary may, upon payment by such person of such sum of money as the Permanent Secretary may direct, exempt, by order under his hand, all such instruments from stamp duty.

   (2) Any sum of money paid under subsection (1) shall be deemed to be compounded duty in respect of the instruments to which such order relates.

[s. 16]

(d) Stamps and Mode of Using Them (ss 18-24)

18.   Duties, how to be paid

   Except as is otherwise expressly provided in this Act the duty with which any instrument is chargeable shall be paid, and such payment shall be indicated on such instrument, by means of a stamp or stamps in such manner as may be prescribed.

[s. 17]

19.   Where adhesive stamps used

   (1) Where any chargeable instrument is stamped with an adhesive stamp, every person executing the instrument or attesting the execution of the instrument by any other person, shall cancel the stamp, unless at the time of such execution or, as the case may be, attestation, the stamp had been properly cancelled by any other person who executed the instrument or attested its execution.

   (2) A stamp shall be deemed to have been properly cancelled for the purposes of subsection (1) only if it has been cancelled by a person who is required by that subsection to cancel it, by writing his name or initials thereon or by affixing on such instrument his seal in such manner that part of the seal is visible on the stamp or in such other manner as may be prescribed, so that in no case can such stamp be used for any other instrument or otherwise.

   (3) Where a chargeable instrument has been stamped by affixing thereon an adhesive stamp, such instrument shall, for the purposes of this Act, be deemed not to have been properly stamped if such adhesive stamp has not been cancelled as is required by this section.

[s. 18]

20.   Instruments stamped with impressed stamps, how to be written

   Every instrument written upon paper stamped with an impressed stamp shall be written in such manner that the stamp may appear on the face of the instrument and cannot be used for or applied to any other instrument.

[s. 19]

21.   Only one instrument to be on same stamp

   No second instrument chargeable with duty shall be written upon a piece of stamped paper upon which an instrument chargeable with duty has already been written:

   Provided that nothing in this section shall prevent any endorsement which is duly stamped or is not chargeable with duty being made upon any instrument for the purpose of transferring any right created or evidenced, or of acknowledging the receipt of any money or goods the payment or delivery of which is secured.

[s. 20]

22.   Instrument written contrary to section 19 or 20 deemed unstamped

   Every instrument written in contravention of section 19 or section 20 shall be deemed to be unstamped.

[s. 21]

23.   Certificate denoting duty or exemption

   (1) Where the duty with which an instrument is chargeable, or its exemption from duty, depends in any manner upon the duty actually paid in respect of another instrument the payment of such last mentioned duty shall, if application is made to a Stamp Duty Officer for that purpose, and on production of both the instruments, be denoted upon such first-mentioned instrument by endorsement under the hand of a proper officer or in such other manner (if any) as may be prescribed.

   (2) Where a Stamp Duty Officer is satisfied that any instrument is, for any reason whatsoever, exempt from stamp duty, he may on application made in that behalf and upon receipt of the prescribed fee, endorse the instrument with a certificate signed by him and certifying that the instrument is so exempt.

[s. 22]

24.   Provisions as to duplicates and counterparts

   The duplicate or counterpart of an instrument chargeable with duty (except the counterpart of an instrument chargeable as a lease, such counterpart not being executed by or on behalf of any lessor or grantor) shall be deemed not to be duly stamped unless it is stamped as an original instrument or unless it appears by some stamp impressed thereon or by certificate given by a proper officer that the full and proper duty has been paid upon the original instrument of which it is the duplicate or counterpart.

[s. 23]

(e) Time When Instruments Must Be Stamped (ss 25-28)

25.   Instruments executed in Tanzania

   All chargeable instruments executed by any person in Tanzania shall be stamped within thirty days of execution:

   Provided that–

   (a)   where any such instrument is brought to a proper officer for adjudication under section 43 of this Act within such thirty days, the period from the presentation of the instrument to the proper officer until the notification to the person who presented it of the decision of the proper officer, shall be excluded in computing the said period of thirty days; and

   (b)   every receipt, acknowledgement of a debt, promissory note and bill of exchange shall be stamped on the date of execution or the date of the instrument, whichever shall be the earlier date.

[s. 24]

26.   Instruments executed outside Tanzania

   Every chargeable instrument executed out of Tanzania shall be stamped within thirty days of its first arrival in Tanzania:

   Provided that–

   (a)   where any such instrument is brought to a proper officer for adjudication under section 43 of this Act within such thirty days, the period from the presentation of the instrument to the proper officer until the notification to the person who presented it shall be excluded in computing the said period of thirty days; and

   (b)   promissory notes and bills of exchange payable on demand or at not more than thirty days from sight or date shall be stamped within seven days of first arrival in Tanzania.

[s. 25]

27.   Bills, cheques and notes drawn outside Tanzania

   The first holder in Tanzania of any bill of exchange, cheque or promissory note drawn or made outside Tanzania shall, before he presents the same for acceptance or payment, or endorses, transfers or otherwise negotiates the same in Tanzania, cause to be affixed the proper stamp and (in the case of an adhesive stamp) cancel the same:

   Provided that–

   (a)   if at the time any such bill of exchange, cheque, or note comes into the hands of any holder thereof in Tanzania, the proper stamp is affixed thereto (and in the case of an adhesive stamp, such stamp is cancelled in the manner prescribed by or under this Act), and such holder has no reason to believe that such stamp was affixed or cancelled otherwise than by the person and at the time required by or under this Act, such stamp shall in so far as it affects such holder, be deemed to have been duly affixed and cancelled;

   (b)   nothing contained in this proviso shall relieve any person from any penalty incurred by him for omitting to affix or cancel a stamp.

[s. 26]

28.   Special provisions for any particular class of instruments

   Notwithstanding the provisions of sections 25, 26 and 27, regulations made under this Act may provide for the time of stamping of any category, class or description of chargeable instruments.

[s. 27]

(f) Valuation of Stamp Duty (ss 29-40)

29.   Conversion of amount expressed in foreign currencies

   Where an instrument is chargeable with ad valorem duty in respect of any money expressed in any currency other than that of the United Republic, such duty shall be calculated on the value of such money in the currency of the United Republic according to the current rate of exchange on the date of the instrument.

[s. 28]

30.   Stock and marketable securities, how to be valued

   Where an instrument is chargeable with ad valorem duty in respect of any share, stock or other security, such duty shall (except as provided in article 60 of the Schedule) be calculated on the value of such share, stock or security, according to the average price or the value on the date of instrument.

[s. 29]

31.   Effect of statement of rate of exchange or average price

   Where an instrument contains a statement of current rate of exchange or average price, as the case may require, and is stamped in accordance with such statement, it shall, so far as regards the subject matter of such statement, be presumed, until the contrary is proved, to be duly stamped.

[s. 30]

32.   Instruments reserving interest

   Where interest is expressly made payable by the terms of an instrument, such instrument shall not be chargeable with duty higher than that with which it would have been chargeable had no mention of interest been made.

[s. 31]

33.   Duty on mortgages of marketable securities

   (1) Where an instrument (not being a promissory note or a bill of exchange)–

   (a)   is given upon the occasion of the deposit of any marketable security by way of security for money advanced or to be advanced by way of loan, or for an existing or future debt; or

   (b)   makes redeemable or qualifies a duly stamped transfer intended as a security, or any marketable security,

it shall be chargeable with duty as if it were an agreement or memorandum of an agreement chargeable with duty under article 5 of the Schedule hereto.

   (2) A release or discharge of any such instrument shall be chargeable with the like duty.

[s. 32]

34.   Duty on transfer in consideration of debt, or subject to future payment, etc.

   (1) Where any property is transferred to any person in consideration, wholly or in part, of any debt due to him, or subject either certainly or contingently to the payment or transfer of any money or stock, whether being or constituting a charge or incumbrance upon the property or not, such debt, money or stock shall be deemed the whole or part, as the case may be, of the consideration in respect whereof the transfer is chargeable with ad valorem duty:

   Provided that nothing in this section shall apply to any certificate of sale referred to in article 17 of the Schedule hereto.

   (2) For the purposes of subsection (1) where property is sold subject to a mortgage or other incumbrance, any unpaid mortgage money or money charged, together with the interest (if any) due on the same, shall be deemed to be part of the consideration for the sale:

   Provided that where property subject to a mortgage is transferred to the mortgagee, he shall be entitled to deduct from the duty payable on the transfer the amount of any duty already paid in respect of the mortgage.

[s. 33]

35.   Valuation in case of annuity, etc.

   Where an instrument is executed to secure the payment of an annuity or other sum payable periodically, or where the consideration for a conveyance is an annuity or other sum payable periodically, the amount secured by such instrument or consideration for such conveyance, as the case may be, shall, for the purpose of this Act, be deemed to be–

   (a)   where the sum is payable for a definite period so that the total amount to be paid can be previously ascertained, such total amount;

   (b)   where the sum is payable in perpetuity or for an indefinite time not terminable with any life in being at the date of such instrument or conveyance, the total amount which, according to the terms of such instrument or conveyance, will or may be payable during the period of twenty years calculated from the date on which the first payment becomes due; and

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