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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
• Income from business A person’s income from business is the gain or profits from that business. • Income from Investment Income from conducting an investment includes dividends, interest and rent. The amount derived from the sale of investment assets is included in investment income. 7.3.2 Chargeability of income tax is divided into two categories: (i) Sole Propriatorship (a) Small Enterprises These are business men/ women who possess the following qualities:- (i) Their business sales are not more than twenty million shillings (ii) They should be residents in the United Republic of <strong>Tanzania</strong> (iii) They should be private enterprises who are not involved in any other activity except business. Tax rates on yearly sales (turnover) are determined as follows: - 32
Page 3 and 4: CONTENTS PREFACE . . . . . . . . .
Page 5 and 6: administration, management skills w
Page 7 and 8: SN BUSINESS TYPE NO. OF EMPLOYEES B
Page 9 and 10: • Sole proprietorship • Partner
Page 11 and 12: offence and upon conviction the lic
Page 13 and 14: Schemes. PART TWO 2.0 DEVELOPING YO
Page 15 and 16: PART THREE 3.0 DEVELOPING A SUCCESS
Page 17 and 18: (b) Opportunities • External capi
Page 19 and 20: PART FOUR 4.0 EFFECTIVE SALESMANSHI
Page 21 and 22: • Attract customers to buy at fir
Page 23 and 24: GOODS (c) Running Cost • Avoiding
Page 25 and 26: have obtained from this training.
Page 27 and 28: 6.3 TYPE OF RECORDS There are many
Page 29 and 30: At the end of each tax period add t
Page 31 and 32: enter into the country for example,
Page 33 and 34: Computation of duty and tax will be
Page 35: Example 5 Calculations Duty/Tax Typ
Page 39 and 40: Allowable costs (i) Salaries and re
Page 41 and 42: (ii) Partnership Under a partnershi
Page 44: To pay tax voluntarily is an act of

Contents - Tanzania Revenue Authority

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