Tanzania income tax act 2004 pdf

Note changes authorised by subpart 2 of part 2 of the legislation act 2012 have been made in. The united republic of tanzania the income tax act, 1973 arrangement of sections part i preliminary section title 1. This act may be cited as the income tax act, 2004, and shall. The income tax act an act to make provision for the charge, assessment and collection of income tax, for the ascertainment of the income to be charged and for matters incidental thereto. This act shall apply to tanzania mainland as well as. An act to impose a tax upon incomes and to regulate the collection thereof.

For some taxpayers it may not be practical to perform the separation and therefore. Income tax act 2004 no 35 as at 23 march 2020, public. A nonresident company is taxed in tanzania to the extent that the income has been sourced in the united republic of tanzania. Income tax is levied on both companies and individuals under the income tax act of 2004.

Single instalment at time of realisation or receipt. Income tax act 94 of 1983 income tax amendment act 30 of 1984 income tax act 121 of 1984 income tax act 96 of 1985. Tax laws in tanzania do not encourage taxpayers to comply voluntarily with taxes. Due date for payment being 7 days after the month end section 841 ita 2004 monthly withholding tax certificate to be issued to each withholdee within 30 days of the month end section 85 ita 2004. The east african community customs management act, 2004. These are the fundamental laws to be read in conjunction with their respective regulations and finance acts. This act shall apply to mainland tanzania as well as tanzania zanzibar. This act also requires that only persons approved by the tax commissioner can act as tax consultants.

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. The tax administration act taa 2015 passed by parliament on 27 march 2015 and. Individual taxation nonresidents are taxed only on income derived from tanzania. The value added tax act, 2014 the port service charges act cap 264. Exemption from withholding tax on various fees charged to government on loans received from nonresidential banks and other international financial institutions with the view of lowering the costs of the government. Income and expenditure after cessation of business. The east african community customs management act, 2004 revised the gaming act, cap.

Small companies rate and fraction for financial year 2004. An act to change the assessment base for noncorporate taxpayers. Public finance act, 2004 professor florens luoga kaichambua vizuri sana hii. In this act, unless the context requires otherwise adjusted assessment means an assessment adjusted in accordance with section 96. Tanzania adopted and periodically reformed the colonial tax systems starting with the poll tax which was introduced by the british in the early 20th century. The income tax act hereinafter referred to as the principal act is amended in section 2 cap. The previous schedule for presumptive tax regime is deleted and the new schedule is inserted as shown below. Tra tanzania revenue authority employment income sec. The paradox arises from the requirements under the income tax act, 2004 ita, which requires companies including ngos to file returns and pay taxes if any, while ngos through the definition provided by the nongovernmental organizations act cap. Tanzania budget ighlights 01920 the presumptive tax rates in the first schedule of the income tax act have also been reduced. This act shall apply to tanzania mainland as well as tanzania zanzibar. Disposal of shares under tanzania income tax law, whether direct or indirect is a.

Income tax act revised edition 2008 tanzania revenue. Benefits as to compulsory age of retirement death gratuity granted under this act shall be exempted from income tax. The income tax act 2004 contains transfer pricing rules that apply to transactions with resident and nonresident associates. Note changes authorised by subpart 2 of part 2 of the legislation act 2012 have been made in this reprint. The finance act, through an amendment to the income tax act 2004 income tax act, prohibits losses from speculative transactions being deducted from taxable income. Note on maternity leave pay tax deduction section 11 of the maternity protection act, ch. 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. The rules are still largely untested, and no guidance has been issued by the tanzania revenue authority tra on how the rules will be applied in practice. Taxes on income imposed under the income tax act 2004 and custom duties under the east african customs management act 2004 are union taxes, whereas. The short title of this act is the income tax amendment act 2014. The east african community the east african community customs management act, 2004 this edition of the east african community customs management act, 2004 incorporates all amendments up to 8th december, 2008 and is printed under the authority of section 12 of the acts of the east african community act, 2004 revised edition 2009 2004. Prevention and combating of corrupt activities act 12 of 2004 taxation laws amendment act 16 of 2004 revenue laws amendment act 32 of 2004 second revenue laws amendment act 34 of 2004.

Tanzania is a member of the east african community customs union involving five countries, viz. Tanzania personal income tax rate 20042018 data 2019. This act may be cited as the income tax amendment act 2014, and commences on the pt day of july 2014. Tanzania amends capital gains tax rules to include change.

Tanzania and in respect of union taxes to zanzibar. Under the income tax act 2004, there is little scope for reducing paye. Income tax act 2004 no 35 as at 29 march 2018, public act. An act to provide for the taxation of incomes and matters connected therewith. The applicable tax rates depend on the source or nature of income. Income tax nonresidents are taxed on their tanzaniansourced income. Tax is deducted at the statutory personal income tax rates, with a top marginal rate of 30% applying to amounts in excess of tzs 720,000 per month. The income tax act 2004 requires corporations within 6 months of the tax yearend to submit an annual return, which must be prepared or certified as a true and fair view by a certified public accountant in public practice cpapp. Part 11 incorporation of companies and matters incidental thereto chapter i the companys memorandum and articles memorandum of association 3. Before and after independence there were two separate countries. 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. Employment income is heavily taxed and the tax contribution of businesses is compromised by tax exemptions and evasion. The current corporation tax rate is 30% for both resident and non. Section 56 of the income tax act, 2004 ita has been amended to apply.

This study recommends for amendment to section 33 of the income tax act so that it can specify methodology for determining what constitutes an arm. Chapter 1 income tax and corporation tax charge and rate bands. Reforms that were done postcolonial era include introduction of sales tax in 1969, enacting of new income tax legislation in 1973, amendment of the existing tax legislation to revise the tax bases. Subject to the provisions of the act, the following classes of benefits shall be. Part iii income tax base division i calculating the income tax base subdivision a total income 5. This page provides tanzania personal income tax rate actual values, historical data, forecast, chart, statistics, economic calendar and news. Tax administration act 2015 an overview pwc tanzania. The personal income tax rate in tanzania stands at 30 percent. Taxes on consumption customs and vat continue to make up the bulk of tax revenue. Tanzania, officially the united republic of tanzania is a country in east africa.

Corporation tax starting rate and fraction for financial year. Amendment of the term business as contained under section 3 of the act by deleting the phrase and any activity that, having regard to its nature and the principal occupation of its owners or underlying owners, is not carried on with a view to deriving profits. The corporation tax is computed on the corporations taxable pro. Amendment of paragraph 22 of the first schedule to the act to increase the threshold of presumptive income tax from tzs 20m to tzs 100m. As a result, incentives provided for under the east african customs. Income tax act ita, 2004 the following amendments have been made. Tanzania or has its place of effective management day to day management in tanzania. A number of sections of the income tax act, 2004 addresses various issues. Foreign exchange controls have been liberalized to simplify international transactions. Car benefit tax act, 1991 income tax act, 2004 act no.