Tanzania: Tax provisions in 2017 budget

Tanzania: Tax provisions in 2017 budget

The second budget of the current government, presented in June 2017, reflects priorities for accelerating economic growth to attain middle income status, curbing revenue leakage and resource wastage, improving infrastructure, and reforming government bureaucracy to enhance service delivery.

1000

Related content

Tax proposals included in the 2017 budget for Tanzania include:

  • Changes to the alternative minimum tax, for persons in a loss position for three consecutive years
  • An increase to the value of non-commercial vehicles qualifying for capital allowances
  • A reduction in the rate of the corporate income tax, from 30% to 10%, for the first five years of commencing operations for taxpayers involved in the new assembly of vehicles, tractors, and fishing boats
  • A value added tax (VAT) exemption on the procurement and import of capital goods used in the production of edible oil, textiles, leather, and pharmaceuticals 
  • A VAT rate of 0% on ancillary transport services
  • An exemption from VAT for locally produced compounded animal feeds and on fertilised poultry eggs used for incubation
  • Various changes to the rates of import customs duties

 

Read a June 2017 report [PDF 5.35 MB] prepared by the KPMG member firm in Tanzania

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us

 

Request for proposal

 

Submit

KPMG's new digital platform

KPMG International has created a state of the art digital platform that enhances your experience, optimized to discover new and related content.