Global

Details

  • Service: Tax, Global Indirect Tax, International Executive Services, International Tax
  • Type: Regulatory update
  • Date: 6/17/2014

Tanzania - Tax proposals in 2014 budget 

June 17:  Tax proposals included in Tanzania’s 2014 budget, presented 12 June 2014, would replace the current value added tax (VAT) law with a new VAT regime.

Other tax proposals in the 2014 budget would:


  • Subject gaming companies to both income tax and gaming tax (gaming companies have been exempt from income tax, and only subject to gaming tax)
  • Repeal a withholding tax exemption on lease rental charges paid to non-resident aircraft lessors by a person engaging in air transport business
  • Increase the rate of the “presumptive income tax” from 2% to 4% on businesses with an annual turnover of between TZS 4 million and TZS 7.5 million, and that maintain proper accounting records
  • Clarify that fees paid to corporate directors would be subject to a 15% withholding tax (as the final tax)
  • Reduce the lower “pay-as-you-earn” tax rate for individuals to 12%

Read a June 2014 report [PDF 1.94 MB] prepared by the KPMG member firm in Tanzania: Tanzania 2014 Budget Brief




©2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.


The KPMG logo and name are trademarks of KPMG International.


KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever.


The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.


Direct comments, including requests for subscriptions, to us-kpmgwnt@kpmg.com.
For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at:

+ 1 202 533 4366

1801 K Street NW
Washington, DC 20006.

 

Share this

Share this

Subscribe

Subscribe to receive the latest TaxNewsFlash email alerts (you must select the option for TaxNewsFlash)


Already a Subscriber? Login


Not a member? Subscribe now