|Item No.||Compliance area||Descriptions|
|1.||Corporate income tax estimates||Income tax estimates are due within 3 months from the beginning of the accounting period. 31st March 2022 was the due date to file estimates for 31 December 2022 year end entities. Taxpayers have opportunity to revise their estimates during the year but not later than the last day of the accounting period. Underestimation of tax is subject to interest.|
|2.||Value Added Tax (VAT)|
TRA has introduced a new e-Filing platform for VAT. The relevant publication can be found here. For VAT e-filing, please follow this link https://vatfiling.tra.go.tz/. The first return affected by this change is the March 2022 VAT return which is due for filing on or before 20 April 2022. Due to expected challenges with the new system, we recommend that this is filed before the due date to minimize chances for penalties which are due when a return is filed late. We also remind taxpayers with brought forward VAT input figure to get the amounts verified by TRA if not done so.
This new VAT e-filing platform does not apply to taxpayers registered and paying tax under the laws of Tanzania-Zanzibar.
|3.||Pay As You Earn (PAYE) and Skills Development Levy (SDL) compliance||Payroll tax returns are due on monthly basis, and these are done online. By now, we expect that you have filed your returns by 7 April 2022 and tax payments made accordingly. Please note that this also applies to dormant entities to the extent the functionality is enabled. Please visit or create your company account through https://efiling.tra.go.tz/ to make sure there are not any pending returns. Late filing is subject to penalties.|
|4.||City Service Levy||This is due to relevant Municipal Councils by the end of each quarter. We expect that you have paid your levy for the quarter to 31 March 2022. This is 0.3% of your turnover for the period.|
|5.||Electronic Fiscal Device (EFD) compliance||The law is very clear that all tax invoices and purchases must be supported by an Electronic Fiscal Device (EFD) or Electronic Signature Device (ESD) or a Government Electronic Payment System (GEPG) with a relevant control number. Fiscal invoices must have a QR code that is a gateway to claiming VAT and other expenses. This is an important element for business to understand and comply.|
|6.||Income Tax Returns||These are due 6 months from the end of the accounting period. Returns for 31 December 2021 are due on or before 30 June 2022. By now, you should have started (if not completed) statutory audits for the year to support tax filing. Subject to approval by the Commissioner, a 30-day extension period can be available and this must be requested 15 days before the due date. Late filing of returns is subject to penalties.|
|7.||Withholding tax||Withholding tax applies on payments for qualifying goods and services and this is due 7 days after the month of payment. This is done through TRA online portal and the withholdee will only be able to print an online withholding tax certificate after the withholder has made the remittance to TRA. You can download a WHT template through the TRA payment gateway system to support compliance.|
|8.||Transfer Pricing||Taxpayers with related party transactions must comply with transfer pricing documentation requirements. This is governed under the transfer pricing regulations as amended from time to time.|
|9.||Interest for late payment of tax||Interest for late payment is computed monthly on compounding basis at a prevailing statutory rate which is currently 5% per annum (7% prior to May 2020, 9% prior to September 2018, 12% prior to August 2017 and 16% from November 2013 to February 2017).|
|10||Penalty for late filing of returns||Late filing attracts a penalty which is 2.5% of outstanding liability subject to a minimum penalty of TZS 225,000 for each month of delay.|
Ark Associates LTD 368 Msasani Road, Oysterbay 14111 Mikumi House,
2nd Floor P O Box 9673 Tel: +255 743 267 709 Dar es Salaam – Tanzania Email: email@example.com
Ark Limited (Zanzibar) Fumba Town P O Box 4840 Zanzibar – Tanzania