Vous êtes sur la page 1sur 14

TR A

TANZANIA REVENUE AUTHORITY


ISO 9001:2008 CERTIFIED

TAXES AND DUTIES


AT A GLANCE
2010/2011

Prepared by:
Taxpayer Services and Education Department Tenth Edition
August, 2010
A. DIRECT TAXES RATES
N o . TAX SOURCE RESIDENT N O N - R E S I D E N T
1. Corporate Tax: 30% 30%

Companies with perpetual tax loss for 3 0.3% of annual 0.3% of annual
consecutive years as a result of tax incentives turnover turnover
on investment.
For newly listed company to the Dar es Salaam 25% 25%
stock exchange, with at least 30% of its shares
issued to the public for three consecutive years
from date of listing.
Total income of a domestic permanent N/A 30%
establishment
Repatriated income of branch N/A 10%
2. Withholding tax on:
(i) Dividends to company controlling 0% 10%
25% of shares or more.
(ii) Dividends from DSE listed company 5% 5%
(iii) Dividends from other Companies 10% 10%
(iv) Other withholding payments 15% 15%
(v) Interest 10% 10%
(vi) Royalties 15% 15%
(vii) Technical Services fees (Mining) 5% 15%
(viii) Transport (Non resident operator/chatterer
without permanent establishment). N/A 5%
(ix) Rental Income (residential house if exceeds 10% 15%
sh. 500,000/- p.a)
Other (any amount) 10% 15%
(x ) Insurance Premium 0% 5%
(xi) Natural Resource Payment 15% 15%
(xii) Service fees N/A 15%
(xiii) Payment for goods or services made by a 2% of gross 15% of gross
Corparation to persons other than holders of TIN payment payment

1
No. TAX SOURCE RESIDENT NON-RESIDENT
3. Disposal of Investment Assets (Capital gains)
Individual asset 10% 20%

Company 30% 30%

Exemption on disposal of investments:

a. Private residence gains of sh. 15


million or less.

b. Agricultural land Market value of less


than 10 million

c. Shares:

1. DSE shares held by a person with


shareholding less than 25%

2. Shares held by a resident company with


shareholding of 25% or more
4. Single Instalment tax on:
1. Sale of land and property (lump sum) 10% 20%

2.Transport across borders - 5%

Due date remittance of withholding tax:

(i) Payment within 7days after month of


deduction.

2
5. Individual Income Tax
Monthly Income Tax Rate
Where total income does not exceed sh. NIL
135,000/-

Where total income exceeds sh. 135,000/= 14% of the amount in excess of
but does not exceed sh. 360,000/- Shs. 135,000/-

Where total income exceeds sh. 360,000/- Shs. 31,500/- plus 20% of the
but does not exceed sh. 540,000./- amount in excess of Shs. 360,000/-

Where total income exceeds sh. 540,000/- Shs. 67,500/- plus 25% of the amount
but does not exceed sh. 720,000/- in excess of Shs. 540,000/-
Shs. 112,500/- plus 30% of the
Where total income exceeds sh. 720,000/- amount in excess of Shs. 720,000/-
Threshold per annum: Income Shs. 1,620,000/-

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 charged
at the rate of 20%.

2. An employee who makes donation as per section 12 of Education Fund Act, such
donation is exempted from tax. But such exemption is upon approval by the
Commissioner.
6. Benefit in kind
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 and
ii. The expenditure claimed as deduction by the employer
in respect of the premises

3
b motor vehicle
E n g in e S iz e E n g i n e up t o 5 Greater than 5
years old Tshs. years old Tshs.

Not exceeding 1000cc 250,000/- 125,000/-

Above 1000 not exceeding 2000 cc 500,000/- 250,000/-

Above 2000 not exceeding 3000 cc 1,000,000/- 500,000/-

Above 3000 cc 1,500,000/- 750,000/-

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

7. The Individual Presumptive Tax Assessment


Tu r n o v e r Ta x P a y a b l e Tax Payable
where Incomplete where records
records are kept are kept
(i) Where turnover does not exceed Sh. 35,000/- 1.1% of the annual
sh. 3,000,000/- turnover

(ii) Where turnover is between 3,000,000/- Sh. 95,000/- Sh. 33,000/- plus
and 7,000,000/- 1.3% of the
turnover in excess
of Sh. 3,000,000/-
(iii) Where turnover is between 7,000,000/- Sh. 291,000/- Sh. 85,000/- plus
and Sh. 14,000,000/- 2.5% of the
turnover in excess
of Sh. 7,000,000/-
(iv) Where turnover is between shs. 14,000,000/- Sh. 520,000/- Sh. 260,000/- plus
and shs 20,000,000/- 3.3% of the
turnover in excess
of Sh. 14,000,000/-

Note: Where turnover exceeds Tshs 20,000,000/- the taxpayer is obliged to prepare
audited financial statements in respect of his/her business.

4
8. a Submission of returns and payment of tax for accounts based on calendar year
i. On or before 31st March
ii. On or before 30th June
iii. On or before 30th September
iv. 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.
b. Final returns and payment of tax
Within six months from the end of the accounting period.
c. Late payment of tax:- Shall be charged interest at the prevailing statutory rate
plus 5% per annum.
d. Issuance of receipt:- Any person who receives any payment of Tsh 5000/ or more
in respect of goods or services must issue a receipt and retain it for not less than 5 years
9. Skills and Development Levy:

(i) Tanzania Mainland:


Rate is 6% of the monthly gross emoluments.
(ii) Tanzania Zanzibar
Rate is 5% of the monthly gross emoluments.

Note: The gross emoluments include wages, salary, leave pay, sick pay, payment in
lieu of leave, fees, commission, gratuity, bonuses any subsistence, traveling or
entertainment allowances

10. Depreciable assets, allowances and the applicable rates


Class Depreciable assets Rate
1* Computers and data handling equipment together with 37.5%
peripheral devices, automobiles, buses and minibuses
with a sitting capacity of less than 30 passengers, goods
vehicles with a seating capacity of less than 7 tones,

2* Buses with a seating capacity of 30 or more passengers, 25%


heavy general purpose or specialized trucks, trailers and
trailer mounted containers, railroad cars, locomotives, and

5
transportation equipment, aircraft other self propelling
vehicles, plant and machinery used in manufacturing or
mining operations, specialized public utility plant and
equipment, and machinery or other irrigation installations
and equipment.

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

4** Natural resource exploration and production rights and 20%


assets in respect of natural resource prospecting,

5** Buildings, structures, dams, water reservoirs, fences, and 20%


similar works of a permanent nature used in agriculture,

6** Buildings, structures, and similar works of permanent 5%


nature other than those mentioned in class 5.
7** Intangible assets other than those in class 4. Over useful life of
the asset

8** Plant and machinery (including windmills, electric 100%


generators and distribution equipment) used in

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
11. Value Added Tax (VAT)
VAT registration threshold:
Taxable turnover exceeding sh. 40 million per annum, or taxable turnover exceeding
10 million attained during three consecutive months.
Description of goods/supplies and services VAT Rates
Supply of taxable goods and services in Mainland Tanzania 18%
Importation of taxable goods and services into Mainland Tanzania 18%
Export of goods and certain services from the United Rep. of Tanzania 0%

6
Supply of taxable goods and services to relieved persons are not subjected to VAT
The Government and its Institutions are not relieved from VAT
Goods and services under a technical aid or donor funded projects, voluntary and
charitable 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 for
authorization to lodge claims on a monthly basis.
12. Stamp Duty
Description Rates

i. Conveyance 1% of consideration

ii. Conveyance for agricultural land Tshs. 500/-

iii. Legal and commercial instruments The duty is chargeable at


Specific rates e.g. Mortgage
deed under article 39 rate is
1% of the amount of
instrument with a maximum
of 10,000/= of stamp duty
payable.

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

7
13. Import Duty
Items Duty Rates
(i). Raw materials, pharmaceuticals and capital 0%
goods, Hand hoes, agricultural implements

(ii). Semi-finished goods. 10%

(iii). Final consumer goods or finished commercial 25%


goods.

(iv) Some senstive items are charged at a higher than 25% rate with the intention of
protecting local industries:
e.g. Yoghurt Milk and Cream containing sweetening matter.
Cane or beet sugar and chemically pure sucrose in solid form
Sacks and bags of a kind used for the packing of goods.
Worn clothing and other worn articles (mitumba).
14. Excise Duty
A. (i) Specific Rates on: Wine, spirits, beer, soft drinks, cigarettes, tobacco and
petroleum products.
(ii) Ad-valorem rates are: 7%, 10%, 20% , 30%and 120% ( 120% imposed on
shopping plastic bags.)

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 Applicable Rate

i) Of cylinder capacity exceeding 1000 cc but not exceeding 5%


2000 cc

ii) Of cylinder capacity exceeding 2000 cc 10%

15. Fuel Levy Sh. 200 per litre of


petrol or diesel

8
16. Airport Service Charges
Inter national Travel USD 3 0
Loc al travel ( res ident) Sh. 5 0 0 0 / -
17. Port charges
Res ident traveler Sh. 5 0 0 / -
Non res ident traveler USD 5
18. Motor Vehicle Registration
M otor vehic le regis tration f ees Sh. 1 5 0 ,0 0 0 / -
Motor cycle registration fees Sh. 45,000/-

19. Motor Vehicle Annual fee

Engine Capacity Annual Fee


Up to 500 cc 50,000/- per annum

501 - 1,500 cc 100,000/- per annum

1,500 - 2,500 cc 150,000/- per annum

Above 2500 cc 200,000/- per annum

Tractors used for agricultural purposes Exempted

20. Motor Vehicle transfer tax

Motor vehicle transfer fees Sh. 50,000/-

Motor cycle transfer fee Sh. 15,000/-

Fee for a new registration card Sh. 10,000/-

9
21. Export Tax:
20% of the value of hides and skins
A levy of 15% chargeable on raw cashew nuts, computed on FOB value or USD 160 / MT
whichever is higher.

22. Duty drawback:


Import duty is refunded on imported inputs used for producing goods for export and
goods sold to foreign institutions operating in Tanzania.
23. Prohibited goods: Narcotic drugs, tear gas substances, seditious, obscene
materials or literature.
24. Restricted goods: Live animals, plants, firearms, ammunitions, etc. These require permit
from relevant authorities

25. Destination Inspection


All imported goods regardless of their value are required to be inspected in the
country. A fee of 1.2% on FOB value is chargeable. Exempted goods are
enshrined in the law

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

27. Temporary importation:


Temporary importations are restricted for 3 months; in case of extension a person
have a chance to apply for two periods of 3 months. Thereafter import duty must be
paid 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 from
the Republic of Kenya imported into Tanzania whose rates will reduce progressively to 0%
over a period of 5 years ending on 31st December 2010.

10
29. Property rates: Dar es Salaam region:

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

S p e c ific a tio n A p p lic a b le R a te

(i) Residential properties 0.15% of rateable value as per valuation roll

(ii) Commercial properties 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 first
schedule to the By laws of the respective Local Authority (Temeke, Ilala and
Kinondoni Municipalities)

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

11
Note: This booklet is not a substitute for the respective tax laws.
The tax laws prevail in case of any inadvertent conflict.

“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, Tanzania

TRA - TSED 400 Taxes and Duties 2010


Tel: 022-2119343 or 2119591-4
Fax: 022-2128593
Toll Free 0713 800333 / 0786 800000
Email: info@tra.go.tz
Website: www.tra.go.tz

WATCH OUT!!
“TRA does not condone corruption.
Both involved parties will be prosecuted.”