How & When to file and revise your Estimate of Tax in Tanzania

A taxpayer in Tanzania is required to file a return of an estimate of tax payable for the year of income.

AUG 6, 2020 UPDATE: INCOME & CORPORATE TAX RETURNS & REVISIONS ARE NOW TO BE SUBMITTED VIA TRA’S NEW EFILING SYSTEM. CLICK TO READ MORE ABOUT HOW TO REGISTER

Due date of furnishing the return shall be:

  • In the case of a person whose year of income is twelve month period beginning at the start of a calendar month on or before the last day of the third month of the year of income; or
  • In the case of a person whose year of income is other than calendar year, at the end of each three month period commencing the beginning of the year of income; or
  • For persons conducting agricultural business involving seasonal crops in the United Republic, by the end of September of the year of income.

A revised estimate of tax may be made under Section 89(1) of the Income Tax Act, 2004. The revised estimate will automatically cancel the original estimate or will be deemed to be an amendment to an estimate made by the Commissioner under the same Section 89(8) of the Income Tax Act, 2004.

Where a taxpayer’s estimate or revised estimate of income tax payable for a year of income under section 88 of the Income Tax Act is less than eighty percent of the correct amount, the the taxpayer shall be liable for interest for each month or part of a month from the date the first instalment for the year of income is payable until the due date by which the person shall file a return of income for the year of income under section 91(1) of the Income Tax Act.


We advice our clients to review their estimate of income before the 4th installment. If the expected income has changed since the estimate was filed, we recommend that the estimate of income be amended in order to avoid imposition of interest and penalties.


DISCLAIMER

As always, anything on this site should not be relied upon in place of appropriate professional advice. Laws do change from time to time.