Tanzania

Individual - Significant developments

Last reviewed - 22 November 2019

Filing of financial statements

To reduce the administrative burden for sole traders and improve voluntary compliance, the Finance Act 2019 has increased the turnover threshold required for a taxpayer to submit audited financial statements with the revenue authority. The annual turnover threshold is increased to 100 million Tanzanian shillings (TZS) from TZS 20 million.

Presumptive tax regime for taxpayers with annual turnover up to TZS 100 million

The Finance Act 2019 introduced changes on the presumptive tax rates, which will now apply to individuals with annual turnover up to TZS 100 million (previously presumptive tax only applied to individuals with annual turnover between TZS 4 million and TZS 20 million). In addition, the presumptive tax rates have been amended as indicated below:

 Turnover (TZS) Tax liability (TZS)
Section 35 of the TAA 2015 is not complied with (i.e. taxpayer does not maintain records) Section 35 of the TAA 2015 is complied with (i.e. taxpayer maintains records)
Less than 4 million 0 0
4 million to 7 million 100,000 3% of amount in excess of 4 million
7 million to 11 million 250,000 90,000 plus 3% of amount in excess of 7 million
11 million to 14 million 450,000 230,000 plus 3% of amount in excess of 11 million
14 million to 100 million N/A 450,000 plus 3.5% of amount in excess of 14 million