taxes and duties 2009-2010_Layout 2

8/7/2019 taxes and duties 2009-2010_Layout 2

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Prepared by:

Taxpayer Services and Education Department0102tsuguA

Tenth Edition

TANZANIAREVENUEAUTHORITY

TR A

TAXES AND DUTIES

AT A GLANCE

2010/2011

ISO 9001:2008 CERTIFIED

,


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TAX SOURCE TNEDISER-NON.oN

For newly listed company to the Dar es Salaamstock exchange, with at least 30% of its sharesissued to the public for three consecutive yearsfrom date of listing.

Total income of a domestic permanent

establishment

Repatriated income of branch

N/A 30%

10%

(i) Dividends to company controlling25% of shares or more.

(ii) Dividends from DSE listed company

(iii) Dividends from other Companies

(iv) Other withholding payments

(v) Interest

(vi) Royalties

(vii) Technical Services fees (Mining)

(viii) Transport (Non resident operator/chattererwithout permanent establishment).

(ix) Rental Income (residential house if exceedssh. 500,000/- p.a)

Other (any amount)

(x ) Insurance Premium

(xi) Natural Resource Payment

(xii) Service fees

(xiii) Payment for goods or services made by a

Corparation to persons other than holders of TIN

0% 10%

5% 5%

10%

15%

10%

10%

15%

10%

15%

5%

15%

15%

N/A

10%

5%

15%

10% 15%

0% 5%

15% 15%

N/A 15%

2% of gross

payment

15% of gross

payment

A. DIRECT TAXES RATES

Corporate Tax:

Companies with perpetual tax loss for 3consecutive years as a result of tax incentiveson investment.

1. 30% 30%

RESIDENT

25% 25%

0.3% of annualturnover

0.3% of annualturnover

N/A

Withholding tax on:2.


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Individual asset

Company

10%

30%

20%

30%

5%

Exemption on disposal of investments:

Agricultural land

a. Private residence gains of sh. 15million or less.

b. Market value of lessthan 10 million

c. Shares:

1. DSE shares held by a person withshareholding less than 25%

2. Shares held by a resident company withshareholding of 25% or more

1. Sale of land and property (lump sum)

2.Transport across borders

TAX SOURCE TNEDISER-NON.oN RESIDENT

10% 20%

-

Disposal of Investment Assets (Capital gains)3.

Single Instalment tax on:4.

Due date remittance of withholding tax:

(i) Payment within 7days after month ofdeduction.


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Monthly Income

Individual Income Tax5.

Benefit in kind6.

Tax Rate

Where total income does not exceed sh.135,000/-

Where total income exceeds sh. 135,000/=but does not exceed sh. 360,000/-

Where total income exceeds sh. 360,000/-but does not exceed sh. 540,000./-

Where total income exceeds sh. 540,000/-but does not exceed sh. 720,000/-

Where total income exceeds sh. 720,000/-

Threshold per annum: Income Shs. 1,620,000/-

NIL

14% of the amount in excess ofShs. 135,000/-

Shs. 31,500/- plus 20% of theamount in excess of Shs. 360,000/-

Shs. 67,500/- plus 25% of the amountin excess of Shs. 540,000/-

Shs. 112,500/- plus 30% of theamount in excess of Shs. 720,000/-

Note:1.For non-resident employees of a resident employer the income is subject to withholding

tax at the rate of 15%. However the total income of a non-resident individual is chargedat the rate of 20%.

2. An employee who makes donation as per section 12 of Education Fund Act, suchdonation is exempted from tax. But such exemption is upon approval by theCommissioner.

a. Housing: Lower of the:- Market value rental of the premises and the higher of the

following:-i. 15% of the employees total annual income andii. The expenditure claimed as deduction by the employer

in respect of the premises


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Not exceeding 1000cc

Above 1000 not exceeding 2000 cc

Above not exceeding2000 3000 cc

Above 3000 cc

250,000/- 125,000/-

500,000/- 250,000/-

1,000,000/- 500,000/-

1,500,000/- 750,000/-

5otupenignEeziSenignEyears old Tshs.

Greater than 5years old Tshs.

The Individual Presumptive Tax Assessment7.

elbayaPxaTrevonruTwhere Incompleterecords are kept

Tax Payablewhere recordsare kept

(i) Where turnover does not exceedsh. 3,000,000/-

(ii) Where turnover is between 3,000,000/-and 7,000,000/-

(iii) Where turnover is between 7,000,000/-and Sh. 14,000,000/-

(iv) Where turnover is between shs. 14,000,000/-and shs 20,000,000/-

Sh. 35,000/-

Sh. 95,000/-

Sh. 291,000/-

Sh. 520,000/-

1.1% of the annualturnover

Sh. 33,000/- plus1.3% of theturnover in excessof Sh. 3,000,000/-



Note: Where turnover exceeds Tshs 20,000,000/- the taxpayer is obliged to prepare

audited financial statements in respect of his/her business.

Note: Not chargeable where the employer does not claim deduction in respect of themaintenance, or operation of the vehicle.ownership,

b motor vehicle


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a Submission of returns and payment of tax for accounts based on calendar year8.

i. On or before 31st Marchii. On or before 30th Juneiii. On or before 30th Septemberiv. On or before 31st December

* Payments for the other accounting dates are made at the end of every quarter,depending on one's accounting period.

Within six months from the end of the accounting period.b. Final returns and payment of tax

c. Late payment of tax:- Shall be charged interest at the prevailing statutory rateplus 5% per annum.

d. Issuance of receipt:- Any person who receives any payment of Tsh 5000/ or morein respect of goods or services must issue a receipt and retain it for not less than 5 years

Skills and Development Levy:9.

(i) Tanzania Mainland:

Note:

Rate is 6% of the monthly gross emoluments.(ii) Tanzania Zanzibar

Rate is 5% of the monthly gross emoluments.

The gross emoluments include wages, salary, leave pay, sick pay, payment inlieu of leave, fees, commission, gratuity, bonuses any subsistence, traveling or

entertainment allowances

Depreciable assets, allowances and the applicable rates10.

1* Computers and data handling equipment together withperipheral devices, automobiles, buses and minibuseswith a sitting capacity of less than 30 passengers, goodsvehicles with a seating capacity of less than 7 tones,

etaRstessaelbaicerpeDssalC

37.5%

2* Buses with a seating capacity of 30 or more passengers,heavy general purpose or specialized trucks, trailers andtrailer mounted containers, railroad cars, locomotives, and

25%


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3* Office furniture, fixtures and equipment, any asset not 12.5%

transportation equipment, aircraft other self propellingvehicles, plant and machinery used in manufacturing ormining operations, specialized public utility plant andequipment, and machinery or other irrigation installationsand equipment.

4** Natural resource exploration and production rights andassets in respect of natural resource prospecting,

20%

5** Buildings, structures, dams, water reservoirs, fences, and

similar works of a permanent nature used in agriculture,

20%

6** Buildings, structures, and similar works of permanentnatureotherthanthosementionedinclass5.

5%

7** Intangible assets other than those in class 4. Over useful life ofthe asset

8** Plant and machinery (including windmills, electricgenerators and distribution equipment) used in

100%

Note 1 * Pools of depreciable assets calculated basing on diminishing value balance method.Note 2 ** Pools of assets calculated basing on straight line method.

B. INDIRECT TAXES

Value Added Tax (VAT)11.

VAT registration threshold:Taxable turnover exceeding sh. 40 million per annum, or taxable turnover exceeding10 million attained during three consecutive months.

Description of goods/supplies and services

Supply of taxable goods and services in Mainland Tanzania

Importation of taxable goods and services into Mainland Tanzania

VAT Rates

18%

18%

Export of goods and certain services from the United Rep. of Tanzania 0%


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Supply of taxable goods and services to relieved persons are not subjected to VAT

Due dates is within 30 days from the date an instrument was signed.

Stamp Duty12.

The Government and its Institutions are not relieved from VAT

Goods and services under a technical aid or donor funded projects, voluntary andcharitable organization under existing laws, and special agreements are relieved from

VAT

VAT on capital goods to any person is relieved

VAT Returns and payments:

Local Supplies : Last working day of the month following month of business

Imports: At the time customs duty is due and payable in accordance with the customs

laws.i. VAT refund on genuine claim: Within 30 days after submission of an authorized

Auditors Certificate of Genuineness.

ii. Regular repayment: Business in a constant refund position may apply forauthorization to lodge claims on a monthly basis.

Rates

1% of considerationi. Conveyance

Description

Tshs. 500/-ii. Conveyance for agricultural land

The duty is chargeable atSpecific rates e.g. Mortgagedeed under article 39 rate is

1% of the amount ofinstrument with a maximumof 10,000/= of stamp dutypayable.

iii. Legal and commercial instruments


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Items

(i). Raw materials, pharmaceuticals and capitalgoods, Hand hoes, agricultural implements

Duty Rates

0%

(ii). Semi-finished goods. 10%

(iii). Final consumer goods or finished commercialgoods.

25%

(iv)Some senstive items are charged at a higher than 25% rate with the intention ofprotecting local industries:

e.g. Yoghurt Milk and Cream containing sweetening matter.

Cane or beet sugar and chemically pure sucrose in solid formSacks and bags of a kind used for the packing of goods.

Worn clothing and other worn articles (mitumba).

Import Duty13.

Excise Duty14.

A. (i) Specific Rates on: Wine, spirits, beer, soft drinks, cigarettes, tobacco andpetroleum products.

7%, 10%, 20% , 30%and 120% ( 120% imposed onshopping plastic bags.)

(ii) Ad-valorem rates are:

B. Imports of non-utility vehicles:

such vehicles of ten years of age or more , counted from the date of manufacture,are chargeable excise duty at the rate of 20%

C. Excise duty on Motor vehicles

Description of Vehicle

i) Of cylinder capacity exceeding 1000 cc but not exceeding2000 cc

5%

Applicable Rate

ii) Of cylinder capacity exceeding 2000 cc

Fuel Levy15. Sh. 200 per litre ofpetrol or diesel

10%


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Airport Service Charges16.

03DSUlevarTlanoitanretnI

-/0005.hS)tnediser(levartlacoL

-/005.hSrelevarttnediseR

5DSUrelevarttnedisernoN

Motor Vehicle Registration18.

-/000,051.hSseefnoitartsigerelcihevrotoM

Motor cycle registration fees Sh. 45,000/-

Motor Vehicle Annual fee

Engine Capacity Annual Fee

Up to 500 cc

501 - 1,500 cc

1,500 - 2,500 cc

Above 2500 cc

Tractors used for agricultural purposes

50,000/- per annum

100,000/- per annum

150,000/- per annum

200,000/- per annum

Exempted

Motor vehicle transfer fees Sh. 50,000/-

Motor cycle transfer fee

Fee for a new registration card

Sh. 15,000/-

Sh. 10,000/-

Motor Vehicle transfer tax20.

19.

Port charges17.


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20% of the value of hides and skins

22.

A levy of 15% chargeable on raw cashew nuts, computed on FOB value or USD 160 / MTwhichever is higher.

Duty drawback:

Import duty is refunded on imported inputs used for producing goods for export andgoods sold to foreign institutions operating in Tanzania.

23. Prohibited goods: Narcotic drugs, tear gas substances, seditious, obscenematerials or literature.

24. Restricted goods: Live animals, plants, firearms, ammunitions, etc. These require permitfrom relevant authorities

Export Tax:21.

26. ASYCUDA++: Under the system documents processing fee is USD 10

25. Destination InspectionAll imported goods regardless of their value are required to be inspected in thecountry. A fee of 1.2% on FOB value is chargeable. Exempted goods areenshrined in the law

27. Temporary importation:Temporary impor tations are restricted for 3 months; in case of extension a personhave a chance to apply for two periods of 3 months. Thereafter import duty must bepaid and registration made in the case of motor vehicle.

28. Imports from East African Community member states:Goods within member states are chargeable at the rate of 0% except some of the goods fromthe Republic of Kenya imported into Tanzania whose rates will reduce progressively to 0%

over a period of 5 years ending on 31 December 2010.st


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etaRelbacilppAnoitacificepS

(i) Residential properties

(ii) Commercial properties

0.15% of rateable value as per valuation roll

0.2% of rateable value as per valuation roll

Provided that the amount chargeable shall not be less than 10,000/=

B. For properties not included in Valuation roll , rates are provided in the firstschedule to the By laws of the respective Local Authority (Temeke, Ilala andKinondoni Municipalities)

C. The property rates for other regions will continue to be collected by the respective Local

29. Property rates: Dar es Salaam region:

A. Segmentation of properties and applicable rates are as follows:

Authorities.


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Together we build our Nation

For more information please contact:The nearest TRA office

or

The Director,Taxpayer Services and Education Department,

Tanzania Revenue Authority,P.O. Box 11491,

Dar-es-Salaam, TanzaniaTel: 022-2119343 or 2119591-4

Fax: 022-2128593

Toll Free 0713 800333 / 0786 800000Email: [email protected]

Website: www.tra.go.tz

WATCH OUT!!TRA does not condone corruption.

Both involved parties will be prosecuted.

Note: This booklet is not a substitute for the respective tax laws.The tax laws prevail in case of any inadvertent conflict.

TRA

-TSE

D

400TaxesandDuties2010

taxes and duties 2009-2010_Layout 2

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