Details of the proposed measures are summarized below. Request for further information by commissionergeneral 75. This act applies to years of income commencing on or after 1st july, 1997. 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. Previously these shares were considered to be noninvestment assets as per section 3 of income tax act hence exempted from withholding tax on investments accorded to other shares listed in dse. The tax administration act 2015, which came into force on 1 august 2015, provides for the minister to make regulations for various matters. Analysis of tanzania budget 201617 by tax consultant. This part shall be read as one with the income tax act, hereinafter referred to as the principal act. Enacted by parliament of the united republic of tanzania.
These are the fundamental laws to be read in conjunction with their respective regulations and finance acts. Income and expenditure after cessation of business. Capital gains tax cgt was reintroduced with effect from 1 january 2015. Letter of intent, memorandum of economic financial policies, and technical memorandum of understanding june 28, 2016 the following item is a letter of intent of the government of tanzania, which describes the policies that tanzania intends to implement in the context of its request for financial support from the imf. Specific presumptive income tax rates apply for individuals with business. The income tax act is amended by repealing section 75a. A number of tax proposals that also include value added tax vat on tourism and financial services, capital gain taxes cgt on stocks and excises on mobile money transfer, have also been presented. 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. Income tax act 90 of 1988 income tax amendment act 99 of 1988 income tax act 70 of 1989. This act may be cited as the income tax act, 2004, and shall come into operation on the 1st july, 2004. Tanzania amends capital gains tax rules to include change. The finance act, 2016 arrangement of parts part title.
Different rates apply to resident and nonresident companies. The income tax act is amended by repealing section 98. As introduced in lok sabha on 29th february, 2016 bill no. Tanzania region subsaharan africa income category low income population 56,318,348 city covered dar es salaam 141 db rank db score 54. Finance act 2016 chapter 24 contents p art 1 income tax charge and principal rates etc 1 income tax charge and rates for 201617 2 basic rate limit for 201718 3 personal allowance for 201718 rate structure 4 savings allowance, and savings nil rate etc 5 rates of tax on dividend income, and abolition of dividend tax credits etc 6 structure of. Tanzania had been relying on section 33 of the income tax act ita to. The taxation laws amendment act 15 of 2016 intends. Tax administration act 2015 an overview pwc tanzania. Published on thursday, june 09, 2016 budget analysis 20162017 tax viewpoint. Income tax act, 2015 act 896 income tax amendment act, 2015 act 902 income tax amendment act, 2016 act 907 income tax regulations, 2016 l.
Certified financial statements must be attached when filing a corporate tax return of income. The income tax act is amended by repealing section 72. Resident and nonresident companies are subject to income tax on income accrued or derived from kenya. Commissioner means the commissioner of income tax appointed under the tanzania revenue authority act. The following are summary of the proposals as per the first draft as compared to and in addition to the budget speech. Tanzanias finance bill, 2016 is released to public on june 2016. The relevant regulations have now been issued in the form of the tax administration general regulations, 2015 gn no 101 of 2016. The 1,445km long, 24 inch diameter pipeline is heralded as the longest electrically. Income tax act ministry of justice government of jamaica. Income tax act 2007 no 97 as at 25 march 2020, public. Rental income net rental income earned by nonresidents is taxed at a flat rate of 20%. The income tax act is amended by repealing section 51a. March 2016 transfer pricing in the extractive sector in tanzania alexandra readhead contents. The uganda income tax amendment bill 2016 the bill was passed by the parliament on 14 april 2016.
This act may be cited as the income tax amendment act 2014, and commences on the pt day of july 2014. Amendments as per finance act, 2015 applicable for june 2016 and december 2016 terms of examinations compiled by academics department, the institute of cost accountants of india statutory body under an act of parliament page 1 amendments made in incometax act rates of incometax for assessment year 201617 1. 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. The change will result in a maximum tax saving of tzs 3,800 per month for an individual. Under the finance act of 2016, tanzania introduced an 18% vat on tourism services tourist guiding, game driving, water safaris, animal or bird watching, park fees and ground transport services and most financial services. The applicable tax rates depend on the source or nature of income. Under the tax administration act, all businesses will be required to use efds with the exception of. The finance bill 2016 has not been made public yet.
A tanzanian resident is taxed on worldwide income, irrespective of source. Part iii income tax base division i calculating the income tax base subdivision a total income 5. An act to make provision for the imposition of an income tax. The income tax act hereinafter referred to as the principal act is amended in section 2 cap. Tax alert tax administration general regulations, 2015. This revised edition of 2008 of the income tax act, cap. The relevant changes are highlighted in red bold italics below. An act to consolidate and amend the law relating to income tax and for other connected purposes. Income tax is charged at a rate of 30% on income of a resident corporation and of a permanent establishment pe of a nonresident corporation or 5% of turnover for technical and management service providers to mining, oil, and gas entities deducted by way. Tra tanzania revenue authority types of withholding taxes final withholding taxes are taxes in which the withholdee cannot claim any tax credit when calculating the income tax payable for a year of income. This act shall apply to mainland tanzania as well as tanzania.
Tra tanzania revenue authority employment income sec. Be it enacted by parliament in the sixtyseventh year of the republic of india as follows. Edition of 2006 and incorporates all amendments made to this act up to and. The bill had proposed an extension to the definition of the term business to cover a. Section 20 of the principal act is amended by substituting for paragraph athe followinga areexempt from customs duty under thefifth schedule of the east african community customs management act, 2004 except compact fluorescent bulbs with a power. Of the amendments passed, two were passed with the intention of capturing capital gain tax cgt on disposal of shares in a tanzanian resident entity. 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 new act modernizes the tax administration provisions and.
Income tax act 2004 no 35 as at 29 march 2018, public act. The income tax act is amended in section 37 aby deleting subsection 6. Ey tanzania released its comments on tanzanias budget for 201617, presented on 8th june 2016 by finance and planning minister philip mpango. Income tax nonresidents are taxed on their tanzaniansourced income. Limit the enjoyment of treaty benefits to persons who. 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. Exclusion of income tax by way of a single installment of 5% on payments relating to horticulture products carried by a foreign aircraft operated or chattered by a nonresident person who has no permanent establishment in tanzania. Income tax act, 2015 4 act 896 income tax act, 2015 68.
Nonresidents are taxable on income with a source in tanzania. Transfer pricing in the extractive sector in tanzania. Income tax act 2007 viewing now as at 01 january 2020. Tanzania instead of kenya in april 2016 highlights economic competition within the region. The tanzanian finance act, 2016 has been passed by parliament. The president declined to assent and referred it to the parliament for further debate and amendments. 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. Improving mobile access by lowering affordability barriers, 2015 the 28% tax rate comprises 18% vat and a 10% excise duty on money transfers source. Taxation annual rates for 201718, employment and investment income, and remedial matters act 2018. Individual taxation nonresidents are taxed only on income derived from tanzania. The tanzanian tax system relies on the contribution of vat, income tax, import duties, and excise taxes. Tanzania or has its place of effective management day to day management in tanzania.1570 950 543 206 1065 1633 855 1069 1290 765 363 1374 1168 756 681 447 345 142 1019 524 1049 1218 482 1172 97 1569 344 1181 874 1499 1659 1118 1282 1331 1425 955 855 1047 840 1261 89 686 1291 862 969 172