What is income tax Act in Tanzania?

An Act to make provisions for the charge, assessment and collection of Income Tax, for the ascertainment of the income to be charged and for matters incidental thereto. 1. This Act may be cited as the Income Tax Act. as Tanzania Zanzibar.

How is income tax calculated in Tanzania?

Personal income tax rates The top marginal rate of tax for resident individuals is 30% (see tax table below). Non-resident individuals are subject to tax at a flat rate of 15% on employment income, which is final tax in Tanzania.

What are the sources of tax law in Tanzania?

IncomeTax Law in Tanzania -18 – The tax sources include all the taxes, indirect or direct such as the personal income tax, excess profits tax, capital gains tax, estate duty, sales tax, excise taxes, customs duties, road tolls, development levies, registration fees and the like.

Is there tax in Tanzania?

Tanzania Individual Income Tax rates are progressive to 30%. Annual income of TZS 2,040,000= is not taxable. 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%.

What are the functions of Income Tax Act?

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. Short title 1. This Act may be cited as the Income Tax Act, 2004.

What is tax structure in Tanzania?

Individuals include sole traders and salaried people who are taxed at progressive individual income tax rate, which varies from the lowest marginal rate of 8% to the top marginal rate of 30%. However, for a non-resident individual the applicable rate is 20%, which is charged on the total income.

What is tax exemption in Tanzania?

Withholding tax exemption The law provides exemption of withholding tax chargeable by foreign banks on interests payable to strategic investors as defined by Tanzania Investment Act. This is one of the measures devised to encourage investment in the country.

Who pays tax in Tanzania?

– Total Income for a year of Income – Every person who has a total income in a year of income or is a corporation which has a perpetual unrelieved loss in that year of income and the pervious two consecutive years of income are liable to tax.

Who pays income tax in Tanzania?

Residents
Residents are liable to income tax on a worldwide basis, while non-residents pay tax only on Tanzania source income. Persons present in Tanzania for at least six months are regarded as resident for income tax purposes.

What are the types of taxes in Tanzania?

Taxation System in Tanzania

  • The tax regime in Tanzania consists of a number of direct and indirect taxes including income tax, Value Added Tax, import duty, excise duty, and stamp duty.
  • The authority has three tax departments (Domestic Revenue, Customs and Excise, and Large Taxpayers (in respect of all taxes).

What are the 5 types of income tax?

Five main Income tax heads

  • Income from Salary.
  • Income from House Property.
  • Income from Profits and Gains of Profession or Business.
  • Income from Capital Gains.
  • Income from Other Sources.