Mining Framework Agreements in Tanzania: Has the Finance Act 2026 Improved Investor Certainty?

Mining Framework Agreements in Tanzania: Has the Finance Act 2026 Improved Investor Certainty? I am of the view that, YES, the Finance Act, 2026 which came into operation on 1 July 2026 has improved investor certainty because it brings positive changes to the mining sector through tax-law recognition of framework agreements. The Key Amendments: The Excise (Management and Tariff) Act, (CAP. 147): The Minister may with the approval by the Cabinet and by order published in the Gazette remit excise duty payable by a holder of a mining or special mining licence (“Licence”) who has entered into framework agreement with the Government (GOT) on goods imported or purchased for use during construction of a mining project in which the GOT has ownership interest. The limitation is that, the remission shall not be granted in respect of petroleum products.

The Minister shall in granting the remission specify the nature of goods, and time limit within which a remission is granted. It is expected that the Minister will make regulations prescribing the procedures in granting the remission. The Income Tax Act (Cap 332): An exemption from income tax can be granted by an agreement that is a framework agreement entered between the Licence holder and the GOT for undertaking mining operations in which the GOT has an ownership interest, as may approved by the Cabinet. The exemption to be granted shall be during construction of the mining project and ceases immediately upon the commencement of production.

Also, the Income Tax Act has been amended to exempt/exclude mining companies which have signed framework agreements with the GOT from imposition of 15% deemed dividend/deemed distribution rule, which was first introduced by the Finance Act, 2025 at 30% and now lowered to 15% under the Finance Act, 2026. The Tax Administration Act, (Cap 438): The Minister, shall by notice published in the Gazette specify a framework agreement for the purpose of a tax law. This amendment is useful because it creates a formal Gazette-recognition mechanism for framework agreements. On its own, it does not grant the tax exemption but its value is that it helps connect the framework agreements to the tax laws that now grant exemptions or remissions to mining companies.

The amendment is meant to help close the gap by giving the Minister a clear power to publish a notice identifying the framework agreements, and once that happens, the agreement is no longer just a private contractual document between the mining company and Government, rather it becomes a formally recognized agreement under the tax administration system The Value Added Tax Act, (Cap 148): The commissioner general may on application by the Licence holder exempt value added tax on importation by or supply to a holder of the Licence having a Cabinet approved framework agreement with the GOT of goods or services to be used solely for implementation of mining activities in which he GOT has ownership interest, provided that such agreement provides for value added tax exemption on goods or services specified therein and the exemption shall apply to goods or services exclusively for construction of mining project and ceases immediately upon commencement of production.

To conclude: These amendments are meant to ensure implementation of the terms agreed in the framework agreements between the GOT and the Licence holders. Prior to these amendments, the fiscal exemptions granted under the framework agreements were not

legally enforceable unless gazetted and there was no express legal framework in the tax legislations which empowered the Minister to recognize and gazette the exemptions agreed in framework agreements. However, whist currently the framework agreements are legally recognized in the tax legal framework, the requirement to gazette is still necessary. The recurring concern has been the absence of a predictable timeframe between execution of framework agreements and publication of the agreed exemptions in the Gazette. The major cause for the delay may now be solved and it is anticipated that the publications will now move swiftly. This should allow the mining companies to expeditiously commence mining operations without incurring tax burdens which have already been exempted under the framework agreements.

Author: Amalia Lui Africa Projects (Extractives, Energy and M&A), Investment, Policy & Strategy Advisor | Business Development & Cross- Border Deal Execution | Government Relations, Risk & Legal Insight | 16+ Years Driving Growth Across Multiple Jurisdictions Email: amalia@amaluitz.com Linkedin: https://www.linkedin.com/in/amalia-lui-95548317/ Disclaimer The views expressed in this paper are those of the author only and should not be considered as an official interpretation, defamatory, or interference of any legislation, laws, or policies of any country including Tanzania. The contents of this paper should not under any circumstances be reproduced or used without the express written consent of the Author. It should not be considered as legal advice to any of its recipient(s) and should not be relied upon without obtaining further legal advice.

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