The Tanzanian parliament has recently enacted amendments to various written laws which require attention.
The changes touch on conduct of insurance business as well as income tax law which has been expanded to include insurance and reinsurance transacted outside Tanzania for Tanzanian residents and resident companies.
The objective of this is to align the insurance Act with the provisions of tax laws and to eliminate loopholes that currently allow unchecked expatriation of revenue outside Tanzania. This means that reinsurance income received outside Tanzania qualifies as a taxable source of income.
Accordingly, the changes have also brought in a very strict procedure for dispensation to insure outside Tanzania through foreign insurance services arrangements.
Another important change is that Marine Cargo imports are now compulsorily to be insured by Tanzanian registered insurers.