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. Subscribe to tax notes today for all tax related topics. For a page 18 less unfavorable, to investment expenditure than the other two. The vat is a multistage tax levied at each stage of production and distribution up to the retail stage.
Pwcs insights and analysis preparing for the future. Government of zambia act national assembly of zambia. Value added tax general regulations, 2015 august 2015 in brief following the entry into force on 1 july 2015 of the vat act 2014 the act, the value added tax. I certify, in accordance with section 2 1 of the acts authentication act, cap. Part 11 imposition of and liability to value added tax 3. Income tax act no 11, 2004 revised 2008 tanzania revenue authority act no. Value added tax general regulations, 2015 august 2015 in brief following the entry into force on 1 july 2015 of the vat act 2014 the act, the value added tax general regulations 2015 the regulations have recently become publicly available. The valueadded tax vat is administered by the tanzania revenue authority. 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. Tanzania investment act section 38 so as to reduce tax exemptions for deemed. Stay caught up on recent news stories involving the taxation system in tanzania, africa. The act is expected to come into operation on the date the minister may, by notice publish in the gazette.
Tanzania per tax exemptions study final report and. Value of tax exemptions in tanzania from 200001 to 201112 the value of tax exemptions estimated by tra has reached a record high of shs1. For dar es salaam region, property tax is levied at 0. Tax administration act 28 of 2011 saflii home saflii. The act has been structured to capture vat on other forms of trade which were not captured by the current vat act 1997. The value added tax act, 1997 arrangement of sections section title part i preliminary 1. Tax system of tanzania had evolved overtime to reflect socioeconomic and political situation at the time. Union taxes are taxes on income imposed under the income tax act 2004 and custom duties under the east african customs management act 2004 l non union taxes are taxes on domestic consumption, including the value added tax, excise duties, hotel levies, stamp duties, motor vehicles taxes, and other charges 4. Tanzania per tax exemptions study final report and briefing note. The value added tax act, 1997 arrangement of sections tanzania. This act, which repeals the existing vat act 1997 the 1997 act, will introduce fundamental changes to widen the. Extension of time limit to lodge the notice of objection. The bill has been assented to by the president of the united republic of tanzania.
Act, a tax known as the value added tax on the supply of goods and services in mainland tanzania and on the importation of goods or services from any place outside mainland tanzania made on and after the 1 st day of july, 1998. The value added tax act ministry of finance and planning. The value added tax act, 2014 tanzania revenue authority. The duties are listed in the countrys tariff schedule. Tanzania personal income tax tanzania individual income tax rates are progressive to 30%. During colonial era, income, customs and excise taxes were under east african high commission, while district commissioners oversaw the collection of personal tax on behalf of treasury. Pdf local government taxation and tax administration in. As a result, incentives provided for under the east african customs. The vat act contains restrictions on claiming input tax. Flis analysis develops the proposition that under certain conditions, this type of vat is a. However, the large number of these taxes, together with their.
Tanzanias general vat rate is 18%, with other rates including 10% and 0% that can apply to certain transactions. This act may be cited as the income tax act, 1973 and shall. Section 81 of the value added tax act vata cap v1 lfn, 2004 as amended in 2007 also requires taxpayers individuals, enterprises or corporates to register for vat. The value added tax general regulation, amendments, 2018.
The value added act, 2014 has provided new requirements for tax invoices issued together with receipts from electronic tax registers or electronic fiscal devices. Special rules for certain sectors such as insurance and telecommunications. Tanzanias amended value added tax regulations deloitte. The taa consolidates provisions relating to tax administration to ease the administration and enforcement of tax law. This act may be cited as the value added tax act, 1997, and shall come into operation on the 1 st day of july, 1998, save that for the provisions of part iv which will come into operation on the 1 st day of january, 1998 and of parts vii, viii, ix, x and xi which will come into operation on the 1 st day of. Section 162 has been amended to reduce tax deposit required to be paid when a person is objecting to the assessment from 50% to of the tax assessed amount.
The name promotes the view that it is a tax exclusively on consumption. Interview and questionnaires were used to get information from the respondents. Value added tax vat, voluntary compliance vanguard news. Savers, who directly or indirectly are owners of capital, do not escape the tax, because value added by capital is subject to the tax. Tanzania corporate other taxes worldwide tax summaries pwc. Property tax is levied at flat rates on the property value by the municipal or city councils. This act may be cited as the value added tax act, 1997, and shall. Part ii imposition of value added tax a imposition and exemptions 3. Customs definition of key terms customs duty this refers to taxes levied on imported or exported goods. Fjeldstad and heggestad 2011 indicated that tanzania tax collection is 14. Tanzania is a member of the east african community customs union involving five countries, viz. The income tax act hereinafter referred to as the principal act is amended in section 2 cap.
Part i preliminary provisions short title and commencement 1. Ey tanzania is currently organising a training session on tax administration act taa 2015 which came into force on 1st august 2015. Union taxes are taxes on income imposed under the income tax act 2004 and custom duties under the east african customs management act 2004 l nonunion taxes are taxes on domestic consumption, including the value added tax, excise duties, hotel levies, stamp duties, motor vehicles taxes, and other charges 4. This sourcebook has been written for the sole purposes of guiding students of tanzania tax law in the study of the income tax law in tanzania. There are different types of pdf, most importantly image only pdf and pdf with text. Tanzania investment act section 38 so as to reduce tax exemptions for deemed capital goods and retain only a few which will stimulate strategic investments. In december 1991 the tax commssion, appointed by the government of tanzania, offered a proposal for reform of the tanzanian tax system. The value added tax act, 2014 arrangement of sections section title part i preliminary provisions 1. Value added tax act, 2014 c value added tax act, 2014 an act to provide for the imposition assessment and collection of value added tax on the supply and importation of goods and services in the bahamas and for connected matters enacted by the parliament of the bahamas part i preliminary 1. Tanzania is a member of the sadc, eac trading bloc, which may affect international vat collection and regulations. Tax administration integrity and its implications on. Appeals shall be as in the federal inland revenue service act. 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 replacement of the current sa1es tax by a valueadded tax v a t is the tax commssions central recommendation in.
Tanzania s new value added tax vat act will come into force on 1 july 2015. The training will take place on 17th march 2016 at the sea cliff hotel in masaki, dar es salaam. Pdf local taxes represent less than 5 per cent of total tax revenues in tanzania. The new vat act requires the following information to be shown on tax invoices generated through electronic fiscal devices and etr receipts. Applicable rates vary depending on the size, use and location of the property. Taxpayer reference number chapter 4 returns and records part a general 10 25. Value added tax vat value added tax is a consumption tax charged by vat registered traders on all taxable goods and services at a standard rate of 18%.
This act may be cited as the value added tax amendment act, 2007. In this act, unless the context requires otherwise act no. Property rates in tanzania 1 1 role of property taxes within tanzania in tanzania, propertyrelated taxes and charges in 1998 yielded about tsh 7. This act may be cited as the income tax amendment act 2014, and commences on the pt day of july 2014. Pwcs insights and analysis valueregulations, 2015 added tax. The value added tax vat bill, 2014 was passed by the parliament in december 2014. The value added tax vat bill, 2014 was passed by the tanzanian parliament in december 2014. Open university of tanzania a dissertation entitled. The tax is also levied on taxable imports made by persons whether or not registered for vat. Monthly income shs tax rate 0 5,000 nil 5,000 360,000 14% of revenues in excess of 5,000 360,000 540,000 shs. Analyzing the new value added tax act, 2014 the value added tax. Pwcs insights and analysis valueregulations, 2015 added. Furnishing of information and production of documents.
Attachment may fail for any file larger than 2 mbs. The hindering factors to achieve full potentiality on tax revenue collection in tanzania, a case of tanzania revenue authority in temeke region, in partial fulfillment of the requirements for the degree of master of business administration of the open university of tanzania. The most likely cause of a problem attaching a pdf file is the file size. Valueadded tax act 2014 an overview briefing the commencement date of the vat act 2014 the new act, which received presidential assent on 11 december 2014, is now confirmed as 1 july 2015.
Tanzania per tax exemptions study briefing note page 3 figure 2. Jun 12, 2015 analyzing the new value added tax act, 2014. Tax administration reforms in tanzania harry kitillya tanzania imf conference on revenue mobilization and development, april 1719, 2011, washington dc created date 4152011 2. Tax revenue collection has increased significantly since the establishment of the.
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