Detailed Breakdown of Gold Export Tax in Tanzania 2025

Tanzania, Africa’s fourth-largest gold producer after South Africa, Ghana, and Mali, produced a record 60,000 kg of gold in 2024, with exports valued at approximately $3.8 billion—accounting for over 50% of total mineral revenues and 42% of all exports.

This surge, driven by high global prices and investments like Barrick Gold’s $4.24 billion since 2019, underscores gold’s role in stabilizing foreign reserves amid currency pressures.

However, the government has intensified regulations to curb smuggling (estimated at 20-30% of output), promote local refining, and capture more value.

Key laws include the Mining Act (Cap. 123, as amended), Finance Act 2024 (effective July 1, 2024), and Mineral Trading Regulations.

These impose royalties, taxes, and quotas, with a total effective burden of 9-10% on unrefined gold exports. For exporters, compliance is mandatory to avoid fines up to 500% of evaded taxes or license revocation.

Below, we detail what you need to know if exporting gold, including differences for small-scale vs. large-scale operations and regional comparisons.

Key Taxes, Fees, and Obligations

Exporting gold involves multiple charges, varying by refinement status, buyer (domestic vs. international), and scale. All payments are based on gross value (market price at sale/refining point, minus transport costs). Unrefined (dore) gold faces higher rates to incentivize local processing.

Charge/Obligation	What It Is & Who Pays	Typical Rate/Requirement	Notes/Variations
Royalty	Payment for extraction rights; paid by miners/dealers to Mining Commission.	6% of gross value for unrefined gold; 4% if sold to Bank of Tanzania (BoT); 2% to domestic refineries.	Reduction (Finance Act 2024) encourages local value addition; exempt from VAT on domestic sales. Applies uniformly, but small-scale miners pay via dealers.
Withholding Tax	Prepayment toward income tax; deducted by buyer or at export.	2% of gross value.	Final for primary/artisanal miners; large-scale offset against corporate tax (30%).
Clearance & Inspection Fees	Covers assay, quality certification by Tanzania Minerals Audit Agency (TMAA).	1% of gross value.	Exempt for BoT sales (Finance Act 2024); mandatory assay for purity/weight.
Service Levy	Funds local services in mining regions; paid to local authorities.	0.3% of gross value.	Minor but cumulative; applies to all scales.
Export Permit/License Fees	Authorization for shipment; non-residents pay higher.	US$200 (consignment ≤$1,000); US$2,000 (> $1,000); annual Mineral Dealer License ~US$500-1,000.	Per consignment; small-scale via cooperatives; large-scale under mining licenses.
HIV Response Levy (New)	Social levy for AIDS programs; introduced Finance Act 2025.	0.1% of gross value.	Collected by Mining Commission; 70% to AIDS Trust Fund; applies from July 2025.
Other (VAT, Corporate Tax)	Zero-rated exports; upstream taxes.	0% VAT on exports; 30% corporate income tax for large-scale.	No export duty distinct from above; ECOWAS-like regional fees minimal.

Total effective burden: ~9.4% for unrefined exports (6% royalty + 2% WHT + 1% inspection + 0.3% levy + 0.1% HIV). Refined/domestic sales drop to 4-6%. For a $1M shipment, expect ~$94,000 in charges.

Small-Scale vs. Large-Scale Miners: Key Differences

Tanzania distinguishes artisanal/small-scale mining (ASM, ~20% of production) from large-scale (80%, e.g., Geita, North Mara mines). ASM focuses on inclusion via cooperatives; large-scale on investment stability.

Licensing & Quotas: ASM requires Primary Mining Licenses (PMLs, reserved for Tanzanians since 2024) or dealer licenses via cooperatives; no 20% local reserve quota. Large-scale needs Special Mining Licenses (SMLs), with mandatory 20% gold set-aside for local refining/BoT (exempt if under fiscal stability agreements). Foreign equity capped at 20% for ASM.
Taxes/Royalties: Uniform rates, but ASM royalties (6%) routed through dealers; exemptions easier for BoT sales. Large-scale faces 30% corporate tax + 16% government free-carried interest in projects.
Compliance Burden: ASM: Simpler, via 47,500+ annual inspections; must sell to licensed buyers. Large-scale: Full ESG audits, local content plans (80% Tanzanian workforce); $35/oz added cost for 20% refining mandate.
Support/Implications: ASM benefits from job creation (310,000 employed) and exchanges trading $202M since 2019, yielding $15M in fees. Large-scale drives $888M annual contributions but risks delays from quota compliance.

These foster inclusivity for ASM while extracting value from large operations.

Recent Legal/Regulatory Changes 2025

Tanzania’s reforms emphasize value retention amid smuggling losses (~$500M/year).

Finance Act 2024 (July 1, 2024): Mandates ≥20% gold reserve for local processing/BoT (Minister sets exact %); BoT recognized as statutory dealer. Royalty to BoT: 6%→4%; to refineries: 4%→2%; 1% inspection fee exempt for BoT. VAT zero-rated on domestic gold supplies. Aims to build reserves (BoT holds ~$1B gold by 2025).
Mining Act Amendments: Reinforces state ownership; new 2025 HIV Levy (0.1%) on all minerals. 34,348 licenses issued (2021-2024), prioritizing Tanzanians for PMLs.
BoT Gold Program: Covers refining costs at Geita/Mwanza refineries; 20% quota boosts forex (exports up 16.8% to $16.7B in April 2025 yoy).

These curb illicit flows (157 arrests in 2024) and target $1T mining revenue in 2024/25.

Export Permits & Documentation

Legal exports require rigorous verification to prevent fraud.

Mineral Export Permit: Apply to Mining Commission post-royalty payment; per consignment.
Mineral Dealer/Exporter License: Annual from Ministry of Minerals; foreigners via JV (20% local equity).
Assay/Purity Certificate: TMAA-verified (fire/XRF); weight, ≥90% purity.
Certificate of Origin & Customs Docs: Proves compliance; BoT Form for forex if applicable.
Clearance/Inspection: TMAA/Customs seal; pay fees upfront.

Process: Notify 48 hours prior; assay (1-3 days); clear Dar es Salaam/Kilimanjaro ports. Non-compliance: Seizure, 5-year ban.

Why These Rules/Taxes Exist & Practical Implications

Motivations: Revenue (~TZS 753B in 2023/24, +20.7%); local beneficiation (refineries like Geita process 10% more post-2024); anti-smuggling (via traceability); reserves buildup (20% quota counters USD shortages).

Implications: High compliance costs/delays (2-4 weeks) strain cash flow; volatile prices ($3,100/oz forecast 2025) amplify risks. Exporters face buyer discounts without docs; smuggling tempts due to regional gaps but enforcement rising (border walls, audits).

Regional Comparisons

Tanzania’s 9-10% burden exceeds neighbors, fueling smuggling.

Country	Royalty	Export Levy/Inspection	Total Burden	Notes
Tanzania	6% (unrefined)	1% + 0.3% levy	9-10%	20% local quota; incentives for BoT/refineries.
Ghana	5%	1.5% withholding	6-7%	Lower for refined; PMMC assay mandatory.
Rwanda	0.5%	0.5% export	~1-2%	Tax haven; attracts smuggled Tanzanian gold.
Uganda	3-4%	Variable (2-4%)	5-8%	DGSM licensing; competitive for ASM.

Tanzania’s rates deter unrefined exports vs. Rwanda’s low levies, but incentives align it closer to Ghana for refined trade.

Tips for Exporters & What to Watch

Prioritize BoT/domestic sales for 2-4% savings.
Budget 10% buffer for fees/delays; use secure logistics.
Monitor annual Finance Acts (next: June 2025) for quota hikes.
Engage local advisors for audits; verify via madini.go.tz.
Watch: ESG mandates, power reliability for refining ($18/oz outage cost).

Conclusion

Tanzania’s regime balances revenue capture with growth, but high burdens demand strict compliance. Key: 6-9% taxes, 20% quota, BoT incentives.

For small-scale, focus on cooperatives; large-scale, leverage agreements. Compared regionally, reforms reduce gaps but smuggling pe