Motor Vehicle Transfer of Ownership Tanzania: TRA Registration, Transfer Tax, Company Cars, Deceased Owners, Imports and Zanzibar

This guide covers motor vehicle transfer of ownership in Tanzania and first registration under the Road Traffic Act, Cap. 168 R.E. 2023 and the Motor Vehicles (Tax on Registration and Transfer) Act, Cap. 124 R.E. 2023, with every government charge taken from the Zatra fee register.

Who should read this guide?

• Private buyers and sellers. Anyone buying or selling a used car, pickup or motorcycle registered on the Mainland.
• Companies with fleets. Finance teams that buy vehicles from individuals, sell old fleet units or move cars between group companies.
• Families settling an estate. Administrators and executors who must move a deceased owner's vehicle into the estate and then to an heir.
• Importers and dealers. Anyone registering a vehicle for the first time after customs clearance.
• Transport operators and Zanzibar owners. Hire and haulage need LATRA licensing, and Zanzibar runs its own register.

The buyer needs a Taxpayer Identification Number before TRA will record the transfer. Our guide to TIN registration explains how to get one online.

What the law says about vehicle registration and transfer

Two Acts work together. The Road Traffic Act, Cap. 168 R.E. 2023 sets the registration system. The Motor Vehicles (Tax on Registration and Transfer) Act, Cap. 124 R.E. 2023 sets the taxes charged at registration and on each transfer. We read both texts this session.

The Registrar is appointed under section 3(1) of Cap. 168. TRA runs the register through its Central Motor Vehicle Registration System (CMVRS), now an IDRAS module. TRA's motor vehicle registration page lists the fees and the transfer documents.

What does TRA charge to register or transfer a vehicle?

Every amount below comes from the Zatra fee register, fees at 26 September 2026, and matches TRA's own page as read on 29 October 2026.

The flat TZS 250,000 registration tax applies where VAT has been paid on the vehicle or an exemption order covers it. Each charge is billed in IDRAS and paid against a GePG control number.

How do you transfer ownership of a used vehicle on the Mainland?

1. The parties sign a written sale agreement, usually before an advocate, who issues an EFD receipt for the work.
2. The seller hands over the original registration card, the keys and possession of the vehicle.
3. The change of ownership is started in IDRAS. The TRA user manual for the motor vehicle module shows the steps: select the new owner and titleholder, enter the chassis number, validate the EFD verification code, then register and submit.
4. IDRAS generates a bill. The buyer pays the TZS 50,000 transfer tax (F0296) against the control number.
5. Once the bill is paid, the record is updated and the new registration card can be viewed and downloaded with its QR code.

The legal duty sits with the seller. Section 21(1) of Cap. 168 requires the seller to notify the Registrar within seven days after the sale, give the new owner's name, address and mileage, and deliver the certificate. The tax falls on the buyer. Section 9(1) of Cap. 124 makes the transferee pay on completion of the transfer.

Since 1 July 2026, section 13(3) of the Electronic Transactions Act, inserted by the Finance Act, 2026, makes proof of a prescribed electronic payment a mandatory requirement for approving vehicle transfers (register F0482). Pay the purchase price by bank transfer or mobile money and keep the proof with the file.

What documents does TRA ask for?

TRA's page lists different packs for individuals, limited companies and sellers who cannot be traced. It publishes no list for a deceased owner, so the last column reflects the estate documents a registrar would expect.

An affidavit and the sale agreement each carry stamp duty of TZS 2,000 (F0267). TRA does not list a tax clearance certificate for a vehicle transfer. Our guide to the tax clearance certificate sets out the transactions where one is required.

How does a company buy, own or sell a vehicle?

A company follows the same steps, with four tax points on top.

• VAT on the purchase. An individual selling a private car makes no taxable supply, so no VAT is charged. Where the seller is a VAT-registered company, the sale is a supply of goods and TRA expects an EFD receipt for it.
• Input tax is blocked for passenger vehicles. Section 72(3)(c) of the VAT Act, Cap. 148 R.E. 2023 denies input tax on acquiring a passenger vehicle and on its spare parts and repairs. The exception is a business that deals in, hires out or carries passengers in such vehicles and bought it for that purpose.
• Capital allowance. Cars and minibuses under 30 seats sit in Class 1 at 37.5% on the reducing balance, as PwC's corporate summary records. The RSM Tanzania Tax Guide 2025/26 records that the depreciable cost of a non-commercial vehicle is capped at TZS 30,000,000.
• Hired vehicles. A company that hires a vehicle from an individual withholds 10% income tax on the hire payment (F0217).

Transfers inside a group can be exempt. Section 8(2)(e) of Cap. 124 exempts a transfer from one body corporate to an associate as part of a transfer of all its assets, unless an associate or related party provides the consideration. A one-off sale of a single car between sister companies does not fit that wording and pays the TZS 50,000.

When the company later sells the vehicle, the proceeds go into the depreciation pool, and TRA expects an EFD receipt for the sale.

What happens when the registered owner has died?

The vehicle passes in two stages. First, it moves into the names of the personal representatives, the executor or administrator appointed by the court. Second, the representatives transfer it to the heir or to a buyer.

The first stage is free of transfer tax. Section 8(2)(b) of Cap. 124 exempts a transfer "to the personal representatives of a deceased owner". The exemption does not mention the second stage, so expect the TZS 50,000 (F0296) when the vehicle leaves the estate. Section 8(2)(a) separately exempts a transfer by an owner to his or her spouse; whether TRA applies it to a transfer from an estate to the widow or widower is a point to confirm.

Expect TRA to ask for the grant, the death certificate, the representative's identity and TIN, and the original card. Disputes among heirs, missing grants and contested wills belong with an advocate. Our guide to wills and inheritance in Tanzania explains how a grant is obtained.

How is an imported vehicle registered for the first time?

First registration comes after customs clearance, once the duties are paid.

1. Pre-shipment inspection. A used vehicle needs a roadworthiness inspection before loading. Arriving without one costs a penalty of 15% of the invoice value (NEW-03-33). See our guide to PVoC and TBS conformity.
2. Customs clearance. Import duty at 25% (F0306), excise by engine size, an age-based excise of 18%, 35% or 40% for older vehicles (F0320), VAT at 18% (F0312), the railway levy (F0309) and the processing fee (F0311). Our guide to importing used vehicles works through the arithmetic.
3. Registration in IDRAS. The importer or clearing agent finds the cleared vehicle, selects its use and number type, confirms the titleholder TIN and submits.
4. Payment. Registration tax (F0289), the licence fee (F0290) and the HIV Response Levy (F0293) are billed together.
5. Card and plates. TRA issues the registration card and assigns the identification marks shown on the plates under section 16(2) of Cap. 168.

For a 2,000cc car the first-registration charges total TZS 650,000. Owners holding a vehicle with a customs irregularity should read about the TRA penalty amnesty running to 31 December 2026 before they try to register or sell it.

Is there capital gains tax or stamp duty on a car sale?

Capital gains. Not for a private car. Income tax on a gain applies to the realisation of an investment asset. The definition in section 3 of the Income Tax Act covers shares and securities, interests in non-resident trusts, and land and buildings. A car is none of these. PwC's individual summary, last reviewed 9 September 2026, lists the same classes. A dealer's cars are trading stock, and a company's cars are depreciable assets, so their sales are taxed as business income through the accounts.

Stamp duty. The sale agreement is stamped as an agreement at TZS 2,000 (F0267). There is a second reading. Section 2 of the Stamp Duty Act defines a conveyance to include an instrument transferring movable property. If an officer treats the document as the instrument of transfer, conveyance duty applies under item 22 (F0262): 0.5% of the first TZS 100,000 and 1% of the rest. We have not seen TRA apply that rate to a vehicle sale, but it is listed below as a figure to confirm. Our guide to stamp duty on documents covers stamping and late penalties.

What checks should a buyer run before paying?

• Match the card to the vehicle. Compare the chassis number, engine number, make and colour on the card with the vehicle itself.
• Check the titleholder. IDRAS records a titleholder separately from the owner. A bank or leasing company named as titleholder must release its interest before the sale.
• Check for a block. TRA can block a vehicle record at the owner's request. Ask the seller to confirm in writing that no block is in place, and confirm it at a TRA office.
• Check police records. Ask the Tanzania Police Force traffic office to confirm the vehicle is not reported stolen and has no unpaid traffic fines.
• Check customs status. Unpaid duty on a temporary import or misdeclared year follows the vehicle.
• Check the seller. The signatory should be the registered owner or hold a stamped power of attorney (F0267).

Section 20 of Cap. 168 presumes the registered owner owns the vehicle. A seller who skips the transfer stays exposed to accident and offence liability, as FB Attorneys noted in March 2023. Prosecution, seizure and accident claims are matters for an advocate.

How much is a personalised number plate in Tanzania?

A personalised registration number costs TZS 5,000,000 for three years (F0297). The proviso to paragraph 3 of the First Schedule to Cap. 124 sets the figure and makes it renewable every three years. A special registration number costs TZS 500,000 on top of the registration fee (F0298).

The IDRAS manual shows that cancelling returns the vehicle to its normal number and raises a new bill. On a sale, agree in writing whether the personalised number stays with the vehicle.

When does a vehicle also need LATRA licensing?

TRA registration lets a vehicle use the road. Carrying goods or passengers for reward needs a separate licence from the Land Transport Regulatory Authority (LATRA). The register prints these annual fees:

• Goods vehicle licence: TZS 50,000 up to one tonne, rising to TZS 350,000 at 20 tonnes and above (F0817).
• Commuter passenger service vehicle: TZS 100,000 to TZS 500,000 by seats (F0819).
• Private hire: TZS 50,000 for a taxi cab and TZS 1,500,000 for a special hire vehicle (F0825).
• Rental vehicle: TZS 50,000 (F0827).

When a commercial vehicle changes hands, the buyer applies for its own LATRA licence; the seller's licence does not pass with the vehicle. A change of use also needs a subsequent registration in IDRAS. Our guide to transport and logistics licensing covers the business licence and LATRA together.

How do registration and transfer work in Zanzibar?

Vehicle registration is not a Union matter. In Zanzibar the Zanzibar Revenue Authority (ZRA) registers vehicles and records transfers through its ZIDRAS portal. Its motor vehicle registration page says all new registrations must be filed online, with the chassis number pre-approved by the Zanzibar Bureau of Standards.

The new cross-water rule matters for anyone who buys in Zanzibar. Section 65 of the Finance Act, 2026 replaces section 13(1) of Cap. 168 from 1 January 2027. A Zanzibar-registered vehicle may then be used on Mainland roads only if the Mainland differential duties, taxes and fees are fully paid. A vehicle brought over for temporary use within three months is excluded, under a procedure in regulations. EY's Finance Act 2026 alert of 17 July 2026 reads it the same way. Our explainer on Union and non-Union taxes sets out why the two sides differ.

What penalties apply to a late or missing transfer?

The larger risk is practical: TRA may refuse a later transfer until arrears are cleared (Cap. 124 s.13).

Worked example: a company buys a used Toyota from an individual

Pwani Logistics Ltd is a hypothetical VAT-registered distribution company in Dar es Salaam. In November 2026 it buys a used Toyota saloon, first registered on the Mainland in 2019, from a private owner for TZS 45,000,000. The price and the parties are illustrative.

Two variations change the total. If TRA charges conveyance duty on the agreement under item 22 (F0262), stamp duty becomes TZS 500 plus 1% of TZS 44,900,000, which is TZS 449,500. Government charges would then be TZS 499,500. If the company also wants a personalised number, add TZS 5,000,000 for three years (F0297).

The advocate's fee is a private charge, receipted on an EFD. Zatra's fee, if engaged, sits on a separate line.

Now the income tax side. The saloon is a non-commercial vehicle, so the depreciable cost is capped at TZS 30,000,000. The first-year Class 1 allowance at 37.5% is TZS 11,250,000. The TZS 15,000,000 above the cap never becomes deductible. No input VAT arises, and section 72(3)(c) would block it anyway because the company does not hire out or carry passengers.

Timing matters. Possession passes on 10 November, so the transfer is complete that day under section 2(2) of Cap. 124. The seller must notify TRA by 17 November. If the company pays the transfer tax 40 days late, the penalty is TZS 12,500 (25%) plus TZS 5,000 (10%) for the further 30-day period.

What to do now

1. Run the pre-purchase checks. Match the card to the chassis and engine, confirm the titleholder, and ask the police and TRA about blocks, theft reports and fines.
2. Get a TIN for the buyer. Individuals and companies need one before IDRAS will accept the new owner.
3. Sign a stamped sale agreement. Have it drafted or attested by an advocate, with an EFD receipt, and stamp it at TZS 2,000 (F0267).
4. Pay electronically. Pay the price by bank or mobile money and keep the proof for the transfer file (F0482).
5. File within seven days. The seller notifies TRA and surrenders the card; the change of ownership is submitted in IDRAS with the EFD verification code.
6. Pay the transfer tax. The buyer pays TZS 50,000 (F0296) against the IDRAS control number on completion.
7. Download the new card. Check the owner, titleholder and particulars, and keep the QR copy with the vehicle.
8. Update the books and licences. Companies add the vehicle to the Class 1 pool at the capped cost, and commercial users apply for their own LATRA licence.

Key dates and deadlines

How Zatra helps

Our tax and regulatory compliance desk prepares the IDRAS filings for fleet purchases, disposals and group transfers, and posts the VAT and capital allowance entries. Our import and export compliance team coordinates first registration after customs clearance. Where TRA assesses penalties or refuses a transfer, our audit and dispute desk prepares the response.

Costs come in two separate buckets. Transfer tax, registration tax, levies and stamp duty are paid to TRA or ZRA at the official amount against the authority's control number. Zatra's professional fee is quoted on its own line and never mixed with them.

Zatra prepares and coordinates, but does not decide or guarantee any authority's outcome. Contested estates, stolen or seized vehicles, prosecutions, accident claims and formal legal opinions are referred to an advocate.

Sources and status

Accurate as at 29 October 2026.

• Road Traffic Act, Cap. 168 R.E. 2023: TRA copy; ss.3, 13, 15, 16, 18, 20, 21 and 23 read. Accessed 29 Oct 2026.
• Motor Vehicles (Tax on Registration and Transfer) Act, Cap. 124 R.E. 2023: Ministry of Finance repository, 2023; ss.2(2), 5, 8, 9, 13, 16 and First Schedule read. Accessed 29 Oct 2026.
• Finance Act, 2026: TRA copy; assented 30 Jun 2026; ss.6, 57 and 65 read. Accessed 29 Oct 2026.
• Motor Vehicle Registration: TRA, page live October 2026. Accessed 29 Oct 2026.
• IDRAS user manual, Central Motor Vehicle Registration System: TRA, version 1.0, 20 Jan 2024; and TRA public notice on IDRAS training, 4 Feb 2025. Accessed 29 Oct 2026.
• VAT Act, Cap. 148 R.E. 2023, s.72(3)(c); Income Tax Act, s.3; Stamp Duty Act, s.2: Tax Revenue Appeals Board copies. Accessed 29 Oct 2026.
• Motor Vehicle Registration and Driving and Road License: Zanzibar Revenue Authority, pages live October 2026. Accessed 29 Oct 2026.
• EY on the Finance Act 2026: 17 Jul 2026. Accessed 29 Oct 2026.
• PwC, Tanzania individual income determination and corporate deductions: last reviewed 9 Sep 2026. Accessed 29 Oct 2026.
• RSM Tanzania Tax Guide 2025/26: RSM Tanzania, 2025. Accessed 29 Oct 2026.
• Duty to report sale of motor vehicle to TRA: FB Attorneys, 6 Mar 2023. Accessed 29 Oct 2026.
• Zatra fee register, fees at 26 Sep 2026; line IDs as cited in the text. Accessed 29 Oct 2026.

Figures to confirm before you act

• Stamp duty: whether TRA stamps a vehicle sale agreement as an agreement (TZS 2,000, F0267) or as a conveyance on sale (F0262)
• Number plates: the plate charge, which the register records as not published (NEW-02-30)
• Estates: TRA's document list for a deceased owner, and whether the spouse exemption covers a transfer from an estate to a surviving spouse
• Electronic payment order: the Gazette order naming which payments must be electronic under the new s.13(2) of the Electronic Transactions Act
• Zanzibar: ZRA's transfer charge, and the regulations for temporary use of Zanzibar vehicles on the Mainland from 1 January 2027
• Vehicle cap: the TZS 30,000,000 depreciable cost limit for non-commercial vehicles in the Third Schedule to the Income Tax Act

This article is general information based on official sources available at the date of publication. It is not legal, tax or financial advice. Laws and notices change. Verify with the issuing authority or consult Zatra before acting.