Tax
From The Report: Tanzania 2018
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In conjunction with EY, this chapter explores the taxation system and Tanzania’s efforts to build an investor-friendly environment. It also contains a viewpoint with Joseph Sheffu, Country Managing Partner, EY.
Articles from this Chapter
Across the board: An outline of taxation principles for individuals and businesses
Across the board: An outline of taxation principles for individuals and businessesOBGplus
Tanzania has a broad taxation system covering income taxes, value-added tax (VAT), stamp duty, and Customs and excise duties. These are governed by laws that provide for the charge, assessment and collection of taxes. The Tanzania Revenue Authority (TRA) may conduct tax audits of individuals and entities to confirm that they are compliant and paying the correct taxes. Corporations Standard options for a structure to conduct business operations in Tanzania are the incorporation of a Tanzanian…
Before income tax: Certain capital expenditures qualify for allowance ratesOBGplus
As many nations in sub-Saharan Africa rely largely on tax revenues to fund spending, governments have been known to be displeased with businesses that delay recouping investments and consequently graduate into the income taxpayers’ group. However, imposing income tax on businesses yet to recoup their initial investment would deter investors. The Income Tax Act, 2004 allows businesses to recoup investments through systematic periodical amortisation of their investments, before they are eligible…
Keeping count: Joseph Sheffu, Country Managing Partner, EY, on maturing financial reporting practices in TanzaniaOBGplus
Viewpoint:Joseph Sheffu, Country Managing Partner, EY As part of its economic transformation in the 2000s, Tanzania recognised that a robust and reliable financial reporting framework, in both the public and private sectors, would play a vital role in mitigating fiscal and fiduciary risks, thereby stimulating further local and foreign direct investments. On July 1, 2004, the National Board of Accountants and Auditors (NBAA), the regulatory body for the accountancy profession in the country,…