• Service: Tax, Global Indirect Tax, Global Mobility 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

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