Taxation of Terminal Benefits
Terminal benefits fall under three categories. Payments in respect of redundancy, loss of office, or termination. If the payment is received during the year of occurrence of the incidence there arises no problem in taxation because it will be taxed in that year of income.
But in most cases there is a lapse of time from occurrence of the incident and the payments. They are normally paid in arrears and their taxation is explained under section 7 (4) of the Income Tax Act.
2015/16 Tax Laws Amendments
Taxation of Individuals : The government aims at progressively reduce the marginal tax rate for individuals to a single digit and it does so by reducing the rate annually from 14% in 2010/11 to 11% 2015/16.
There is no change made on the tax bands but the marginal tax rate has been reduced from 12% to 11%. This results in monthly tax savings of Tshs 1,900 for an individual. The new monthly tax table will be as follows:
Tanzania Tax Administration
The United Republic of Tanzania (URT) uses the widely used three tier tax administration structure. The structure is comprised of:
=> Central Government Taxes Administration vested on Tanzania Revenue Authority (TRA),
=> Zanzibar’s Domestic Consumption Taxes Administration vested on Zanzibar Revenue Board (ZRB),
=> Local Government Taxes Administration vested on Local Authorities.
Taxation Questions and Answers
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Principles of Taxation
Principles of Taxation are basic concepts by which a government is meant to be guided in designing and implementing an equitable taxation regime. These include:
- Adequacy: taxes should be just-enough to generate revenue required for provision of essential public services.
- Broad Basing: taxes should be spread over as wide as possible section of the population, or sectors of economy, to minimize the individual tax burden.
Introduction to Income Tax
Income tax defined : In an effort to define the term “income tax”, we need to ascertain the exact meaning of the term “income”. Income can be defined as some benefit, monetary or otherwise, which an individual “enjoys” periodically.
This definition is somehow in-comprehensive since it is hard to define enjoyment. In the efforts to derive a meaning of the word income, economists evolved what they call “equity or economic concept” and accountants
Tanzania's Tax Structure
Introduction : Taxation is one of the oldest functions of a government in running government affairs.
Apart from the cost of running the government, normally there are some services which have to be met by the state. Imperatively government have to provide social services, maintain law and order, ensure defense and a horde of other undertakings which the free market cannot provide or which the state feels are better provided by itself. In this regard the government has to raise revenues