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Tag Archives: TRA

Acacia Mining to pay $20m in corporate tax in 2016‏

ACACIA Mining PLC is to pre-pay 20 million US dollars in corporate taxes this year after signing a Memorandum of Understanding with the Tanzania Revenue Authority (TRA) last month in Dar es Salaam.

According to the Acacia’s CEO, Bradley Gordon, this proactive move was initiated by Acacia Mining PLC in recognition of the time the company has been operating in the country.

Acacia Mining, which entered the Tanzania mining sector as Barrick and later as African Barrick Gold 15 years ago has been making profit, according to Mr Gordon, in his internal communication to Acacia staff at the weekend.

However, much as the company has in most cases declared net profit across the mines it owns the fact of the matter is it has not yet recouped the USD 3.8bn it has invested into building and developing the three mines it owns.

Under Tanzanian mining law and the terms of the Mineral Development Agreements between Acacia Mining PLC and the government any profit made is used to offset the initial investment and therefore during that period the company is not required to pay any corporate tax.

Mr Gordon says in elaborating the issue of profit that “when running a business one needs to first exclude all costs from your income before you can declare a profit – the cost in this case is the initial capital cost that has been invested to develop the mines”.

“Whilst we make net profits, these are not taxable and our current projections are we aren’t due to pay corporate taxes until 2018”, he says.

According to Mr Gordon, the fact that the MOU between Acacia and TRA has been signed and has been recognised as a pre-payment by all parties makes it clear that in the TRA’s opinion, no corporate tax is currently owed by Acacia and therefore none has been evaded.

In its recent ruling, the Tax Revenues Appeals Tribunal (TRAR) accused the gold mining giant of running a sophisticated tax evasion scheme in the country.

Acacia has since appealed to the Court of Appeal against the ruling asserting that the company’s financial reports conformed to international best practices and were audited by global accounting firms and government organisations.

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New Skills and Development Levy (SDL) regulations

Minister of Finance TZ                                                          Tanzania Finance Minister : MS. Saada Mkuya Salum

Introduction:

Skills and Development Levy: is a levy collected by TRA under the Vocational Education Training Act and Income Tax Act.

SDL is charged based on the gross pay of all payments made by the employer to the employees employed by such employer in the particular time. It is important to understand that SDL is due and payable by an employer.

The gross emoluments is a sum of amount from salaries, wages, payments in lieu of leave, fees, commissions, bonuses, gratuity, any subsistence travelling , entertainment or other allowance received by employee in respect of employment or service rendered.

New SDL regulations
A new requirement has been introduced for employers to file a monthly tax return in respect of Skills and Development Levy. Failure to file such a return may result in late filing penalties.
Part XIII of the Tax Administration Act, 2015 (“Consequential Amendments”) includes amendments to various pieces of tax legislation, including Section 16(1) of the Vocational Education and Training Act, Cap 82), which now reads as follows: “Every employer shall file with the Commissioner on or before the seventh day of each month a return setting out the total gross monthly emoluments payable by the employer to employees in respect of the preceding month and the levy payable with respect thereto”.
Employers should make note of the new filing obligation, and immediately file a return for July 2015 (if not already filed). Use

ITX 219.01.E – SDL- Monthly Return

So is the   Employer’s obligation:

  • To calculate the amount of the levy and pay the amount to Commissioners account to the respective Tax Region in which such employer is registered.

 The SDL payments shall be made using form ITX 300.01.E – Employment Taxes Payment Credit Slip.

  • To prepare a MONTHLY RETURN and submit to the TRA office on or before the 7th day of the month following the month of payroll.
  • To prepare and remit half year certificate which tally with the monthly returns submitted during the period.

Who is liable for SDL?

Any employer who employs four or more employees shall pay SDL from gross emoluments.

The rate applicable for SDL is 5% of the total emoluments paid to all employees during the month.

The employee includes permanent employees, part time employees, secondary employees, casual laborers etc.

The SDL shall not be charged to:

(a) a Government department or a public institution which is wholly financed by the Government;

(b) Diplomatic Missions;

(c) the United Nations and its organizations;

(d) international and other foreign institutions dealing with aid or technical assistance;

(e) religious institutions whose employees are solely employed to-

(i) administer places of worship; or

(ii) give religious instructions or generally to administer religion;

(f) charitable organizations; or

(g) local government authority.”.

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MJ

 
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Posted by on August 14, 2015 in Uncategorized

 

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2.4bn/- lawsuit for Fastjet?

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Freckle-faced budget airline Fastjet could be sued for over 2.4bn/- (1.5 million US dollars) by Tanzania Revenue Authority (TRA) for failing to pay taxes for almost a year, UK daily The Telegraph reported Thursday.

The Tanzanian arm of the firm, which is listed at the London Stock Exchange, failed to pay payroll and property taxes, according to The Telegraph brief.

Sources told the UK paper that the company was found to owe the Tanzanian government billions in unpaid dues during a tax audit last month.

Local representatives of Fastjet say the burden is not theirs to pay off. They say the matter is a legacy issue inherited when the budget carrier took over local hauler Fly540 in June last year.

“[Fly540 chief executive] Don Smith has accumulated significant debt from Fly540, Fastjet has no liability for these,” says a Fastjest press note sent to The Citizen on Sunday.

Firm spokesperson Meg Muigai insists all money issues were settled during the buyout. Fastjet owes the Fly540 executive no other favours, she says in the statement.

“Mr Smith certified in a document signed by him on 24 July 2012 that other than specific liabilities as set in the document, there is no other liability or indebtedness due to him or any entity controlled by him.”

The Telegraph reported that Fastjet was also on the hook for missed airport departure charges accrued by its newly-bought asset between January and November last year.

These claims are the latest in an array of other demands and legal issues the embattled budget carrier is grappling with in East Africa.

The firm is embroiled in bitter disputes in Kenya and Uganda, according to British media.

In an earlier response, the UK paper quoted a Fastjet spokesperson who said the company “works closely with the Tanzanian government to properly address all historic issues relating to tax.”

Tax officials in Dar es Salaam have told The Citizen on Sunday they are unaware of any revenue backlog issues pertaining to the newly-launched no-frills carrier.

Senior Tanzania Revenue Authority (TRA) officer Lupinje Hamis said he was unaware of any tax issues, and could not comment on the Fastjet matter.

The firm shook the Tanzanian airline industry to the core with the introduction of ultra-cheap air travel in November last year.

It is positioning itself as a major contender in Africa, with an aggressive growth strategy that has seen it pursue partnerships and acquisition in West, Central and Southern Africa.
Source: The Citizen, http://www.thecitizen.co.tz, the Citizen Reporter and Agencies

 
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Posted by on February 4, 2013 in Tanzania News

 

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Submission of VAT returns Electronically Starts this October

Tanzania Revenue Authority in modernizing its operations as envisaged in its Third Corporate Plan has developed a web-based application which is to be accessed and used in filing tax returns and statements. The web-based return e- filing System has been developed with the prime objective of easing documents filing by Taxpayers. The System offers the following benefits:

  • Taxpayers will      interact with TRA while at their houses or offices.

  • Elimination or      reduction of queues at TRA offices during return filing days.

  • E-filing will      result in fewer errors and creates simple and quicker processing of      documents.

  • Taxpayers can save their records in their e-mail boxes or print       hard copies for future reference

The requirements for filing VAT returns electronically will be effective October 2012 and all Registered Taxpayers are required to register for Electronic Filing in order to be able to use the e-filing system.

Visit http://www.tra.go.tz and click on the e-filing hyperlink to start the process.

 
 

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Tanzania: Sekta binafsi walia na TRA

Dodoma, Tanzania.

 
TAASISI ya Sekta binafsi nchini (TPSF) imesema, uwezo mdogo wa kukusanya kodi wa Mamlaka ya Mapato nchini (TRA) unasababisha bajeti kuegemea kuongeza kodi kwenye bidhaa za vinywaji ambavyo vinaaminika kuwa ni chanzo cha mapato yao.
 
Pia taasisi hiyo imeshauri Serikali ianzishe utaratibu wa kuajiri kwa mikataba ya miaka mitatu tu ili kuweza kuwa na nidhamu katika utendaji kazi na matumizi ya fedha za umma pia.
 
Hayo yamesemwa na Mkurugenzi Mkuu wa  TPSF, Godfyey Simbeye wakati akizungumza na waandishi wa habari mjini hapa juu ya kauli ya taasisi hiyo baada ya Waziri wa Fedha, Dk William Mgimwa kuwasilisha bajeti ya Serikali jana.
 
Alisema, hii inaonesha dhahiri kuwa TRA haina orodha kamili ya walipa kodi  ambao hali ambayo kwa kiasi kikubwa ndiko kiasi kikubwa cha mapato kinakopotea na hivyo kujikuta wakilazimika kukandamiza kodi kubwa katika vinywaji.
 
Alisema kuwa, uamuzi huu wa kuongeza bajeti katika vinywaji haujafanyika katika bajeti hii ya 2012/2013 bali inafanyika karibu bajeti zote katika kila mwaka.
 
“Wenzetu wa nchi ya Kenya, katika bajeti yao ya mwaka jana hawakugusa kabisa kupandisha kodi katika vinywaji, inaonesha wanakusanya kodi yao katika maeneo mengine,” alisema Mkurugenzi huyo.
 
Aidha aliongeza kuwa, ni jambo la kushangaza pale ambapo Wabunge walishangilia baada ya kusikia Waziri wa Fedha na Uchumi, alipotangaza kuongeza kodi katika sigara na bia kwa asilimia 25 ili kuweza kuwadhibiti walevi.
 
Alisema kuwa hivi sasa Tanzania ina watu milioni 45, lakini walipa kodi  ni watu 500 hali ambayo huchangia Serikali kushindwa kukusanya mapato stahiki na kuendelea kunyonya walipa kodi wadogo.
 
“Labda vitambulisho vya taifa vitasaidia nchi hii kuweza kukusanya kodi na kuacha kuangalia kwenye bia na soda,” alisema.
 
Pia alibainisha kuwa, kama sekta binafsi  haikupendekezwa na Serikali kutenga asilimia 70 kwenda kwenye matumizi ya kawaida huku asilimia 30 kwenda kwenye shughuli za maendeleo hali ambayo inaonesha kuwa hakutakuwa na ushindani kwenye biashara.
 
“Sekta binafsi inapendekeza angalau asilimia 65 ingetengwa kwa ajili ya matumizi ya kawaida na kwenye shughuli za maendeleo iwe asilimia 35 ili kwenda sambamba na soko la pamoja la Afrika Mashariki,” alisema.
 
 Alisema kuwa, bajeti haikueleza kama Mkaguzi na Mdhibiti Mkuu wa Hesabu za Serikali (CAG) atawezaje kuzuia matumizi mabaya ya fedha za umma.
 
Simbeye alisema kuwa, suala la kuvutia uwekezaji linasuasua kutokana na kutokuwa na benki ya ardhi kwani hakuna ardhi inayotengwa kwa ajili ya uwekezaji katika kilimo.
 
“Serikali ifikirie kuwa na benki ya ardhi na wangeanza na mikoa mitano kama majaribio, suala la ardhi lingetengewa bajeti hilo pia lingerahisisha hata ukusanyaji wa kodi,” alisema.
 
Pia alitaka leseni isiwe chanzo cha kukusanya mapato kwenye Halmashauri na kuangaliwa kwa mikakati ya kukuza viwanda ambayo bado haijawekwa vizuri.
 
Aidha alisema kuwa bajeti ya mwaka huu haiwezi kubadilisha maisha ya Mtanzania kwa kiwango kilichotarajiwa kwani haikuongelea suala la bei ya mafuta.

Posted by MJ

 
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Posted by on June 19, 2012 in Tanzania News

 

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Taxation of Benefit In kind – Tanzania Income Tax Law

Kuna Mtu aliniuliza swali, amepewa nyumba ya kuishi pamoja na gari vya kampuni. Kila mwezi wanamkata kodi inajumuishwa kwenye PAYE haelewi kwa nini;

Benefit In kind inatokea pale muajiri anapofanya malipo kwa mahitaji binafsi ya muajiriwa kwa kumpatia bidhaa au huduma. (sio kwa kumpa pesa). Mfano ni Muajiri kumpatia muajiriwa Nyumba, kulipia ada za watoto wa muajiriwa,gari au kumpatia bidhaa au huduma bure au kwa bei ya chini.

Kuthaminisha kodi ya benefit in kind.

kwa ujumla kiwango cha benefit in kind kinapatikana kwa kulinganisha ile huduma uliyopatiwa na thamani yake kwenye soko. Kwa maana nyingine kama muajiri asingempa nyumba angeilipia kiasi gani?

Sheria ya Kodi tanzania inatoa maelekezo ya jumla ya kiasi cha pesa inayotakiwa kukatwa kodi kwa kupewa gari, Nyumba na Mikopo nafuu inayotokewa na kampuni kwa wafanyakazi wake.

Mfano wa Kuthaminisha Gari:  hii inategemea na saizi ya injini na umri wa gari. kiasi cha malipo kwa mwaka unagawa kwa miezi 12 na kukiongeza kwenye Taxable income of employment ya mwezi. ANGALIA CHATI CHINI.

Natumaini rafiki  umepata mwanga kwa ile kodi unayokatwa ya gari! kwa mifano zaidi ya jinsi ya kupata thamani ya riba kwa mikopo na nyumba tembelea tovuti ya TRA.

SAIZI YA INJINI YA GARI

KIASI   CHA MALIPO KWA MWAKA

XXXXXXXXXXXXXXXXXXXXXXXXX GARI CHINI YA MIAKA MITANO GARI ZAIDI YA MIAKA MITANO
ISIYOZIDI 1000CC SHS. 250,000 SHS. 125,000
ZAIDI YA 1000CC LAKINI ISIYOZIDI 2000CC SHS. 500,000 SHS. 250,000
ZAIDI YA 2000CC LAKINI ISIYOZIDI 3000CC SHS. 1,000,000 SHS. 500,000 
JUU YA 3000CC SHS. 1,500,000 SHS. 750,000
 

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TRA Introduces new Cargo Tracking System.

The Tanzania Revenue Authority has introduced a new system to track down shipments. The new Electronic Cargo Tracking System (ECTS) started yesterday 12th March,2012 with the intention to monitor the movement of goods under Customs control.

ECTS enables the tracking of a vehicle with goods from one point to another within Tanzania, though the coverage may be expanded in future if need arises. The following are some of the benefits of ECTS:-

1. To identify illegal diversion of goods which are under Customs control

2. Improved government revenue

3. Improved transit times

4. Real-time consignment tracking as opposed to manual tracking

5. Transparency

6. Uninterrupted movement of goods

7. Quick security bond cancellation

8. Increases truck turnaround time

For more Information on how this is going to work  visit TRA Site http://www.tra.go.tz/index.php?option=com_content&task=view&id=519&Itemid=59

Monica.

 

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