sportello tanzania

Tax system

The complex tax structure is divided into direct and indirect taxation. The first relates to income tax and property while the second refers to the consumption and international trade.
The entity that manages all transactions relating to 'taxation is the Tanzania Revenue Authority (TRA). Please note that the Agreement is in force between Italy and Tanzania to avoid double taxation.

Corporation tax

Bank of Tanzania

The current rate is 35% and is levied on taxable profits accumulated by any company which carries on business in the country. To this end, all companies (including subsidiaries of foreign companies) are required to compile an annual interim report, a kind of self-assessment, based on estimated earnings, while the final report must be filed within three months from the end of "accounting period relative".
The tax, which is deducted with the comparison between the two investigations, must be paid when submitting the final.

Income tax

Compete with each resident, meaning that for every person residing permanently in Tanzania, or that has been present in the country for a period of at least 183 days in the year under reference, or at least 122 days in 'as in the reference year in progress three previous years.
All components of salary, with the exception of housing assistance, are taxable. The income tax is divided into four groups of progressive rates ranging from 17.5% currently to 35%. All employees are required to pay their income tax based on the Pay as You Earn (PAYE) Scheme

Capital gains tax

The rate of tax imposed on capital gains is currently 10% calculated on the difference between the value of the financial interest or sold and the determined cost of that interest or financial assets.

Value added tax

Tomato industry Tanzania

This is a general tax levy of 20% consumption of most goods and services produced in the country or imported. Any company that produces or sells goods on which VAT is applicable, before starting his business activities, must register with the offices of TRA.
The import of capital goods for investment in what are the priority sectors of development from' Investment Promotion Center, is not subject to VAT.

Consumption tax on locally manufactured goods

It is applied against certain local products such as drinks, beer, cigarettes and petroleum products. This is the ad valorem rate of which differs depending on the product.

Import duty

This is an ad valorem duty calculated on the CIF value of imported goods in the country.
The current tariff regime establishes four classes of rates: 5%, 10%, 20% and 25%.
Holders of "Certificate of incentives" are exempt from payment of import duties on capital goods related to sectors deemed strategic and priority development, such as fertilizers, pesticides, tractors and even equipment for the infrastructure sector.
In general, it is not required "certificate of incentives" to be exempt from payment of import duty on tractors, as well as on capital goods for mining.
Imports of raw materials, spare parts and capital goods are taxed at 5%, semi-finished products and parts to 10%, finished products and parts of motor vehicles to 20%. The increased rate of 25% refers to consumer goods.

Consumption tax

Rate of 10% is levied on motor vehicles, while luxury goods are taxed at 30%.
Specific rates are reserved for drinks and spirits import, as well as to petroleum products.