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Contents - Tanzania Revenue Authority

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Running Costs:<br />

Salaries 840,000.00<br />

Electricity 240,000.00<br />

Water 40,000.00<br />

Rent of Business 720,000.00<br />

Local govt levy 60,000.00<br />

Educations levy 50,000.00<br />

Property depreciation 120,000 .00 2,075,000.00<br />

Net Profit 3,925,000.00<br />

Extra Information<br />

(i) Half of the levy income of the council comes from<br />

penalties which amount to TZS 30,000.00<br />

(ii) Madam Subira also paid some TZS 400,000.00 in four<br />

installments, as yearly initial tax.<br />

Calculation of tax that Madame Subira is supposed<br />

to pay in the year 2006 is as follows:-<br />

TZS<br />

(i) Net profit 3,925,000.00<br />

(ii) Add penalty by local government 30,000.00<br />

(iii) Profit liable for taxation 3,955,000.00<br />

Tax computation:<br />

(iv) Profit liable for taxation 3,955,000.00<br />

(v) Subtract (see tax band 3) 2,160,000.00<br />

1,795,000.00<br />

(vi) Multiply by 20%<br />

(vii) First part of tax 359,000.00<br />

(viii) Add (tax for tax band 3) 224,400.00<br />

(iX) Total tax of the year 581,400.00<br />

Subtract initially estimated tax 400,000.00<br />

Tax at the end of fiscal year 181,400.00<br />

35

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