Revision of Corporate Income Tax Estimates for accounting periods ending 31 December 2017 is due on or before 29 December 2017
For accounting periods ending 31 December 2017, the due date to revise the Corporate income Tax Estimates initially estimated within the first three months of the year is on or before 31 December 2017 (being the last day of the accounting period for company). Given that this is falling on a Sunday, the due date is effectively on the Friday of 29 December 2017.
The aim of revising the corporate income tax estimates is to avoid either
(i) Underestimation of tax; or
(ii) Overestimation of tax.
Both underestimation and overestimation of tax are undesirable for the business due to the significance of their implications namely (i) punitive underestimation interests and (ii) long processes to obtain refunds from the Tanzania Revenue Authority or TRA on overpaid taxes. Therefore, we believe the awareness of these consequences is quite useful for you and your business.
This alert is therefore to encourage you to assess your performance for the year using actual numbers to November 2017 and estimated numbers for month of December 2017 in order to come up with reasonable revised tax estimates.
It is important to note that, in addition to making good the final instalment payment after the revision of the estimates (assuming a payment is due or no payment at all), you should also ensure you file the revised Statement of Estimated Tax Payable to the TRA within the timelines. It is only after filing such a revised statement that the initial estimate becomes ineffective otherwise TRA will have the right to demand the tax as initially estimated.
It is our hope that this alert is informative. In case you require our assistance in accomplishing this, please get back to us no later than 15 December 2017 to give us sufficient time to assist you the revision. Otherwise we are happy to take your queries on this matter through our usual contacts.
John Shimbala, Director
Mobile: +255 766 798 508
Godfrey Temba, Director
Phone: +255 767 810 970
Ark Associates Limited
369, Toure Drive
Oysterbay P O Box 23197
Dar es salaam, Tanzania
Tel +255 2222 96800
This publication is intended to provide you with a general compliance guide and does not constitute a professional tax advice. Do contact us in case of any questions requiring a formal advice or position of the law.
© 2018 ark. All Rights Reserved. Ark Associates Limited is an independent entity incorporated and resident in Tanzania since 17 May 2016. The company is licensed to provide Professional Taxation and Accountancy Services.
For more information please visit us at www.ark.co.tz