The companies act an act to regulate trading companies and other associations, to impose tax on nominal capital, to regulate dividends and surpluses, and to provide for related matters. Enacted by the parliament of the united republic of tanzania. In this act, unless the context requires otherwise short title and commencement. These are the fundamental laws to be read in conjunction with their respective regulations and finance acts. An act to provide for the taxation of incomes and matters connected therewith. This act may be cited as the nongovernmental organizations act, 2002 and shall come into operation on such date as the minister may, by notice published in the gazette, appoint. Tanzania tax data 20142015 statutory rate prevailing discount rate determined by bank of tanzania, compounded monthly. The applicable tax rates depend on the source or nature of income. Further to our newsletter circulated after the budget speech, we would like to take this opportunity to inform you of some significant changes in the finance act 2019 which were not included in the budget speech read by the honorable minister of finance on june 2019 andor the finance bill. Tanzania or has its place of effective management day to day management in tanzania. The tax regime in tanzania consists of a number of direct and indirect taxes including income tax, value added tax, import duty, excise duty, and stamp duty. The researcher investigated property tax administration process and the problems associated with it, challenges facing property tax collections and taxpayer perception on property tax. Act 8, 2004, act 21, 2004, act 14, 2006, act 18, 2006.
Income tax act 58 of 1962 south african government. Tax act and is also in the process of finalizing the study on tax exemptions with a view to assess costs and benefits. Before and after independence there were two separate countries. Subject to certain limited exemptions, tanzanian resident companies and close corporations companies are taxed on their worldwide income as provided on income tax act 2004 section 67. Tanzania per tax exemptions study briefing note page 4 figure 4. The income tax regulation tanzania revenue authority. The case of tanzania revenue authority, kilimanjaro region in fulfillment of the requirements for award of the degree of masters of business administration mba of mzumbe university. Union taxes are taxes on income imposed under the income tax act 2004 and custom duties under the east african customs management act 2004 l nonunion taxes are taxes on domestic consumption, including the value added tax, excise duties, hotel levies, stamp duties, motor vehicles taxes, and other charges 4.
This act may be cited as the income tax act, 1973 and shall, subject to the sixth schedule, come into operation on 1st january, 1974 and apply to assessments for the year of income 1974 and subsequent years of income. Theincome tax act on total income, including taxes on gains. In this act, unless the context requires otherwise adjusted assessment means an assessment adjusted in accordance with section 96. All central government taxes are administered by the tanzania revenue authority tra. Rental income net rental income earned by nonresidents is taxed at a flat rate of 20%. Procedure for procuring service through courts of other counties. Section type of payment from to rate final nonfinal 81 employment resident employer resident employee regulations nonfinal 81 employment resident employer non resident employee 15% final 82 dividend resident corporation listed on dar es salaam stock exchange all 5% final 82 dividend resident corporation not listed on dar es salaam stock. Tanzania sales tax rate vat 20062020 data 20212022.
Section 56 of tanzanias tax legislation applies if there is a change in the underlying ownership of the tanzanian entity of more than 50%. Taxes payable central government taxes and levies corporation tax tanzania resident companies are liable to corporation tax on all. Open university of tanzania a dissertation entitled. Enacted by parliament of the united republic of tanzania. Tanzania, officially the united republic of tanzania is a country in east africa. Hogan lovells publications november 2017 change in control tax tanzania. This act may be cited as the income tax act, 1973 and shall, subject to the sixth schedule, come into operation on 1st january, 1974, and apply to assessments for the year of income 1974 and subsequent years of income. This act shall apply to tanzania zanzibar as well as to mainland tanzania. Jun 12, 2015 analyzing the new value added tax act, 2014. Tax administration act 2015 an overview pwc tanzania. Tanzania finance act 2019 update rsm global audit tax. Tax administration reforms in tanzania harry kitillya tanzania imf conference on revenue mobilization and development, april 1719, 2011, washington dc created date 4152011 2.
The value added tax vat bill, 2014 was passed by the parliament in december 2014. The act amends laws relating to various taxes and duties. Tanzania experienced macroeconomic stabilization and significant structural change over the last three decades. This act may be cited as the value added tax act, 1997, and shall come into operation on the 1 st day of july, 1998, save that for the provisions of part iv which will come into operation on the 1 st day of january, 1998 and of parts vii, viii, ix, x and xi which will come into operation on the 1 st. An act to consolidate and amend the law relating to the imposition, assessment and collection of tax on incomes. This act shall apply to tanzania mainland as well as tanzania zanzibar. Tanzanias parliament approved the finance bill, 20182019 on 28 june 2018. Legal information income tax this article summarises income tax in tanzania as of the date of publication and highlights key features of income tax, including 16 things every tanzanian should know concerning income tax. This part consist of regulations made by the minister for matters authorized to be made or prescribed and for better carrying into effect of the principles, purposes and provisions of the respective acts. Tanzania revenue act act, cap 299 revised edition 2006.
Legislation tanzania communications regulatory authority. The hindering factors to achieve full potentiality on tax revenue collection in tanzania, a case of tanzania revenue authority in temeke region, in partial fulfillment of the requirements for the degree of master of business administration of the open university of tanzania. Income and expenditure after cessation of business. Tax revenue collection has increased significantly since the establishment of the. Beneficiaries of tax exemptions in tanzania, 2010 11 and 201112 based on the value of tax exemptions received based on data made available to the consultant to assess either the cost of each tax exemption or. Income tax act 19454 kb act current to 20200421 and last amended on 20200411. This act shall apply to mainland tanzania as well as tanzania. The short title of this act is the income tax amendment act 2014. Income tax and vat acts online the income tax act, 1962, valueadded tax act, 1991 and other tax acts may be accessed on the sars website. The finance act, 2018 the act became operative with immediate effect from 1 july 2018.
Data used to compile the 201516 tax statistics report were obtained from tanzania revenue authority tra, the ministry of finance and planning mofp, the presidents office regional administration and local government poralg and the national bureau of statistics nbs. New tin registrant relieved of the instalment tax payment requirement for the first 6 months. The amendments act states that mines resident officers will be stationed at every mining site, and will be responsible for daytoday monitoring and reporting. Income tax nonresidents are taxed on their tanzaniansourced income.
The income tax amendment 20 national assembly of zambia. Part 11 incorporation of companies and matters incidental thereto chapter i the companys memorandum and articles memorandum of association 3. This page provides tanzania sales tax rate actual values, historical data, forecast, chart, statistics, economic calendar and news. Part iii income tax base division i calculating the income tax base subdivision a total income 5. Interpretation 1 in this act, unless the context otherwise requires. Along the lines of the indian vodafone case on indirect share disposals, tanzania has followed suit with its own version of a change in control tax. Short title this act may be cited as the income tax act. The study intended to assess challenges facing property tax collection in tanzania. This act shall apply to mainland tanzania as well as to tanzania zanzibar.
This act shall apply to mainland tanzania as well as tanzania zanzibar. Tanzania investment act section 38 so as to reduce tax exemptions for deemed capital goods and retain only a few which will stimulate strategic investments. Part iii administration of the mining act 2010 mining act and introduces. The new act modernizes the tax administration provisions and consolidates these within one piece of legislation. This act, which repeals the existing vat act 1997 the 1997 act, will introduce fundamental changes to widen the. The consolidated income tax act is available, in a pdf version, under the tax heading on the university of pretoria, laws of sa consolidated legislation website. On 14 june 2018, tanzanias minister for finance and economic planning presented the 201819 budget the budget.
Tax administration act 2015 an overview 12 august 2015 in brief the tax administration act taa 2015 passed by parliament on 27 march 2015 and assented to on 11 may 2015 came into force on 1 july 2015. Valueadded tax act 2014 an overview briefing the commencement date of the vat act 2014 the new act, which received presidential assent on 11 december 2014, is now confirmed as 1 july 2015. There are also taxes levied at the local government level. The author, a senior lecturer of law at the university of dar es salaam, addresses some complex and practical issues about income taxation in tanzania. The theme of the budget as it is for all east african countries is to build an industrial economy that will stimulate employment and sustainable social welfare. Tanzania per tax exemptions study final report and briefing note. The taxpayer must apportion input tax attributable to both exempt and taxable supplies in line with the formula provided under the value added tax act, 2014. Service fee with a source in urt paid to a non resident service fee for provision of professional services paid to a resident person management and technical service fee paid to a resident person by. The finance bill and act for the 201819 is yet to be released to the public. This act may be cited as the tanzania revenue authority act. Supplier issues the tax invoice to unilever tanzania limited once steps 15 are complete. The sales tax rate in tanzania stands at 18 percent.
The research was conducted in dodoma municipal council. Tanzania investm the budget speech included reference to a reduction of the tax exemption on deemed capital goods for investors registered with the tanzania investment centre 90%, so that an investor would be obliged to pay 10% of the due tax. Tax act 2004 income tax act, prohibits losses from speculative transactions being deducted from taxable income. Issn 0856 0331x the united republic of tanzania act supplement no. Individual taxation nonresidents are taxed only on income derived from tanzania. This act may be cited as the income tax act, 2004, and shall come into operation on the 1st july, 2004. The commissioner may, on good cause, remit the whole or part interest or penalty imposed under any tax law, except that in the case of interest, the.
Tax administration reforms in tanzania harry kitillya tanzania imf conference on revenue mobilization and development, april 1719, 2011, washington. The measures impact the oecd transfer pricing guidelines on which tanzanias new tax administration transfer pricing regulations, 2018 are based. An act to impose and alter certain taxes, duties, levies, fees and to amend certain written laws relating to the collection and management of public revenues. The tanzania revenue authority act, 1995 the tax revenue appeals act cap 408 of the revised edition 2002 the tax revenue appeals act cap 408 of the revised edition 2002 the value added tax act, 1997 the value added tax act, 1997 the value added tax act, 1997 the value added tax act, ch 148 revised 2006. The act eradicates jurisdiction of the minister from exempting any other person or persons from payment of the tax imposed under the act. The cybercrimes act, 2015255kb the electronic transactions act, 2015704kb amendment of section 26 of the electronic and postal communications act, 2010 666kb the electronic and postal communications act, 2010 act no. In this act, unless the context requires otherwise act no. This act may be cited as the income tax amendment act 2014, and commences on the pt day of july 2014. Finance bill finance bill 2012 update update pwc tanzania. The bill was then assented by the president and became a finance act on 30 june 2018. This proposal is now reflected by a finance act amendment to the tanzania investment act 1997. Section type of payment from to rate final nonfinal 81 employment resident employer resident employee regulations nonfinal 81 employment resident employer non resident employee 15% final 82 dividend resident corporation listed on dar es salaam stock exchange all 5% final 82 dividend resident. Income tax national social security fund exemption rules, 2002. In this act, unless the context requires otherwise authority means the tanzania revenue authority established by section 4.
Global tax alert 3 the tax administration act, 2015 remission of interest now vested to the commissioner general for the tanzania revenue authority instead of the minister of finance. The income tax act hereinafter referred to as the principal act is amended in section 2 cap. Commissioner means the commissioner of income tax appointed under the tanzania revenue authority act. Income tax act 2006 the united republic of tanzania the. The act is expected to come into operation on the date the minister may, by notice publish in the gazette. A recent development is the publication by the tanzania revenue authority tra of a practice note practice note 0120, which seeks to clarify i certain aspects of the implementation of the new 5% withholding tax on payments to residents, and ii the interpretation of the source. The value added tax act, 2014 the port service charges act cap 264. However, in 2010 measures were introduced to limit the carry forward period to the year in which the loss arose and the next four succeeding years of income. The bill has been assented to by the president of the united republic of tanzania. Factors enhancing tax payment compliance for medium taxpayers in the development of national economy. The hardest thing to understand is the income tax albert einstein 16 things every tanzanian should know about income tax.258 255 993 1117 1235 1136 419 1109 451 1204 1161 106 1439 432 917 765 1259 163 234 85 826 547 94 138 88 955 400 1223 522 1 450 453 1256 33 732 558 1096 1454 735 319 105 759 66 963 549 646 1259 1141 1134