Contents - Tanzania Revenue Authority

Example 6 Calculations
Note: The Excise duty 10%*: The rate is imposed on Non- utility
vehicles with engine capacity of more than 2,000 cc and with
less than ten years from the year of manufacture.
7.3 INCOME TAX
In order to obtain import duty to be paid,
take the certified customs value and
multiply by the import duty rate (25%).
USD 3,800 x 25% = USD 950
USD 950 x TZS 1,300 =
In order to obtain excise duty value, take
the certified customs value plus import
duty calculated in (i). Then multiply by
the excise duty rate (10 %)
USD (3,800+950) = USD 4,750
USD 4,750 x 10% =USD475
USD 475 x TZS 1,300=
In order to get the value of VAT, take the
certified value and add to it the import
duty and the excise duty you have
calculated in (ii). Then multiply by the
VAT rate (20%).
USD (4750+475) = USD5225
USD5225 x 20% = USD 1,045
USD 1,045 x TZS1300= TZS 1,358,500/=
7.3.1 The Income tax is a tax on gains or profits from person’s
income from employment, business or ownership of property
and an investments in corporations and other entities
• Income from employment
The total income of each person is determined separately.
This includes salaried people who are taxed at
progressive individual income tax rate that varies from the
lowest marginal rate of 18.5% to the top marginal rate of
30%. Benefits in kind are also to be included in
determining the taxable income of an employee.
31