8/3/2019 2008 Budget Highlights

http://slidepdf.com/reader/full/2008-budget-highlights 1/3

©2008 KPMG, the Tanzania member firm of KPMG International, a Swiss cooperative. All rights reserved. Printed in Tanzania. The KPMG name andlogo are trademarks of KPMG international

Budget Highlights - 2008/09

I I nn d d i i v v i i d d u u a a l l s s

MMoo rree mm oo nn ee yy iinn tt hh ee pp oo cckkee tt ffoo rr ee mm pp lloo yy ee ee ss

aa nn dd iinn dd iivv iidd uu aa ll iinn ccoo mm ee --ee aa rrnn ee rr ss ……

GGee tt tt hh aa tt ccaa rr bb aa cckk oo nn tt hh ee rroo aa dd ……

MM oo tt oo rr vv ee hh iicc llee lliiccee nn ccee ffee ee ss hh aa vv ee rree dd uu ccee dd !! !!

.. ..aa nn dd ee xx cc iiss ee dd uu tt yy oo nn vvee hh iicc llee ss iiss nn oo ww tt hh rree ee --

tt iiee rr ::

Engine size (cc)

Proposed (TShs)

Current (TShs)

Below 1000 0%

1000 - 2000 5%

Above 2000 10%

10% onvehicles

morethan

2000cc

Broad bands for income

Current band (TShs)

Revised band (TShs)

Rate (%)

0 –80,0000

0 –100,0000 0

80,001 –180,000

100,001 –360,000 15

180,001 –

360,000

360,001 –

540,00020

360,001 –540,000

540,001 –720,000 25

Above540,000

Above720,000 30

Reduction of motor vehiclelicence fees

Engine size (cc)

Proposed (TShs)

Current (TShs)

Below 500 30,000 50,000

500 - 1500 50,000 80,000

1500 - 2500 120,000 150,000

2500 - 5000 140,000 330,000

Over 5000 150000 175,000

BBuu tt …… hh oo lldd oo nn …… tt hh ee oo nn ee --oo ffff ffee ee ss hh aa vvee

iinn ccrree aa ss ee dd ???? MMoo tt oo rr vvee hh iiccllee ss –– FFrroo mm TTSS hh ss

9900,,000000 tt oo TTSS hh ss 112200,,000000

MMoo tt oo rrccyycc llee ss –– FFrroo mm TTSS hh ss 2277,,000000 tt oo TTSS hh ss 3355,,000000

YYoo uu aa rree ee nn ccoo uu rraa gg ee dd tt oo iinn vvee ss tt iinn AApp pp rroo vvee dd

CCoo llllee cc tt iivvee IInn vvee ss tt mm ee nn tt SS cchh ee mm ee ss ....

……CCaa pp iitt aa ll gg aa iinn ss tt aa xx ww iillll nn oo tt bb ee aa pp pp lliiccaa bb llee ww hh ee rree

yyoo uu ss ee llll uu nn iitt ss ffrroo mm aa nn AApp pp rroo vvee dd CCoo llllee cc tt iivvee IInn vvee ss tt mm ee nn tt SS cchh ee mm ee ..

RRee dd uu cc tt iioo nn oo ff mm oo bb iillee pp hh oo nn ee aa iirr --tt iimm ee tt aa rr iiffffss

mm aa yy nn oo tt pp aa yy oo ffff nn oo ww tt hh aa tt ee xxcc iiss ee dd uu tt yy oo nn aa iirr--tt iimm ee

hh aa ss gg oo nn ee uu pp ....

FFrroo mm 77%% tt oo 1100%%

All changes take effectfrom 1 July 2008 otherthan widened scope of“exported services” forVAT purposes, whichtakes effect 1 Jan 2009

8/3/2019 2008 Budget Highlights

http://slidepdf.com/reader/full/2008-budget-highlights 2/3

©2008 KPMG, the Tanzania member firm of KPMG International, a Swiss cooperative. All rights reserved. Printed in Tanzania. The KPMG name and

logo are trademarks of KPMG international

C C o o mm p p a a nn i i e e s s

IIff yyoo uu aa rree iinn bb uu ss iinn ee ss ss ,, yyoo uu aa rree ee xxpp ee cc tt ee dd tt oo

bb ee iinn iitt ffoo rr aa pp rroo ffiitt .. .. aa tt llee aa ss tt oo nn ccee ee vv ee rryy

tt hh rree ee yyee aa rr ss ……

IIff nn oo tt ????

HHaa vvee yyoo uu ww oo nn aa tt ee nn dd ee rr tt oo mm aa kk ee aa nn yy

ss uu pp pp lliiee ss tt oo aa

GG oo vvee rrnn mm ee nn tt bb oo dd yy????

NNoo nn --GG oo vvee rrnn mm ee nn tt aa ll aa nn dd nn oo nn --pp rroo ffiitt --

mm aa kk iinn gg oo rrgg aa nn iiss aa tt iioo nn ss aa pp pp llyy iinn gg ffoo rr VVAATT

ss pp ee cc iiaa ll--rree lliiee ff……

…… tt hh ee rree iiss mm oo rree tt oo bb ee dd oo nn ee !! !!

0.3% Alternative Minimum Tax(AMT) on gross turnover has

been introduced forcompanies that report tax

losses for three consecutiveyears..

… yes, even where your taxlosses arise due to claiming

capital and investmentallowances.

2% final withholding tax onpayments made by

Government to suppliers whodo not possess Taxpayer

Identification Numbers

(1) … submit annual work-plans to TRA, indicating how

charitable activities willbenefit the society.

(2) … certify that the VATrelief will only be used for theintended purposes, and not

otherwise.

(3) …TRA will issue TaxClearance Certificates to VAT

special-relieved NGOs forthem to continue enjoying

special relief status.

(4) …household consumableswill no longer enjoy VAT

special relief.

V V e e r r y y w w e e l l c c o o mm e e .. ..

EExx cc iiss ee dd uu tt yy oo nn HHee aa vv yy FFuu rrnn aa ccee OO iill ((HHFFOO)) iiss dd oo ww nn ffrroo mm TTSS hh ss 111177

pp ee rr lliitt rree tt oo TTSS hh ss 99 77 pp ee rr lliitt rree ..

IImm pp oo rr tt dd uu tt yy oo nn ss oo dd iiuu mm ss uu llpp hh aa tt ee iiss dd oo ww nn ffrroo mm 22 55%% tt oo

1100%%

8/3/2019 2008 Budget Highlights

http://slidepdf.com/reader/full/2008-budget-highlights 3/3

©2008 KPMG, the Tanzania member firm of KPMG International, a Swiss cooperative. All rights reserved. Printed in Tanzania. The KPMG name and

logo are trademarks of KPMG international

O O t t hh e e r r s s e e c c t t o o r r a a l l c c hh a a n n g g e e s s ……

FFrroo mm 11 JJ aa nn 2200 00 99 ,, ss ee rrvv iiccee pp rroo vv iidd ee rr ss ccaa nn nn oo ww ee nn j joo yy VVAATT zzee rroo --

rraa tt ee dd ss tt aa tt uu ss ww hh ee nn ee xxpp oo rr tt iinn gg tt hh ee iirr

ss ee rrvv iiccee ss

BBaa gg ss mm aa nn uu ffaa cc tt uu rree dd

lloo

cc

aa

llllyy

ffoo

rr

pp

aa

cc

kk

iinn

gg

iimm pp oo rr tt ee dd bb uu llkk aa gg rr iiccuu lltt uu rraa ll pp rroo dd uu cctt ss

aa rree zzee rroo --rraa tt ee dd !!

NN oo ww VVAATT--ee xxee mm pp tt ::

-- BBiitt uu mm ee nn ,, -- CCoo mm pp rree ss ss ee dd NNaa tt uu rraa ll GGaa ss ((CCNN GG)),, aa nn dd -- CCNN GG ccyylliinn dd ee rr ss

As from 2009, servicesqualifying for VAT zero-rated

status when exported willinclude:

• Accounting, consultancy,legal, engineering;

• Radio and televisionbroadcasting;

• Telecommunication;•• Auxiliary services in the

transport industry.

BBuu rrnn iinn gg gg ee ll ffoo rr dd oo mm ee ss tt iicc uu ss ee ww iillll bb ee VVAATT--ee xxee mm pp tt ww hh ee nn

ss oo lldd tt oo ccoo nn ss uu mm ee rrss ....

WW hh ee nn MM oo tt oo PPoo aa LLtt dd pp uu rrcchh aa ss ee ss iinn pp uu tt ss ffoo rr pp rroo dd uu cciinn gg MM oo tt oo PPoo aa

bb uu rrnn iinn gg gg ee ll,, ss uu cchh iinn pp uu tt ss ccaa nn ee nn j joo yy VVAATT

ss pp ee cc iiaa ll--rree lliiee ff

PPrr iiccee ss oo ff ccaa rrbb oo nn aa tt ee dd ss oo fftt dd rr iinn kkss ,, bb ee ee rr ,, ww iinn ee ss aa nn dd cciigg aa rree tt tt ee ss

mm aa yy iinn ccrree aa ss ee nn oo ww tt hh aa tt ee xxcc iiss ee dd uu tt yy

tt hh ee rree oo nn hh aa ss iinn cc rree aa ss ee dd bb yy 1122%%

AAg g r r i i c c u u l l t t u u r r e e ……

HHaa nn dd hh oo ee ss aa nn dd oo tt hh ee rr iinn pp uu tt ss aa rree nn oo tt ss uu bb j jee cc tt

tt oo iimm pp oo rr tt dd uu tt yy

NN oo mm oo rree pp aa yy iinn gg oo ff aa nn nn uu aa ll lliiccee nn ccee ffee ee ss

oo nn tt rraa cc tt oo rr ss !!

OO tt hh ee rr iimm pp oo rr tt dd uu tt yy

ee lliimm iinn aa tt ee dd •• DDaa tt aa pp rroo ccee ss ss iinn gg

mm

aa

cc

hh

iinn

ee

ss

•• CCrruu dd ee pp aa llmm oo iill •• BBaa rr llee yy uu pp tt oo 2200 ,,000000

MM ee tt rr iicc TToo nn nn ee ss iimm pp oo rr tt ee dd bb yy lloo ccaa ll bb rree ww ee rryy ccoo mm pp aa nn iiee ss bb ee ffoo rree 3311 DDee ccee mm bb ee rr 2200 00 99

•• GG aa rrbb aa gg ee --ccoo llllee cc tt iioo nn vv ee hh iicc llee ss pp uu rrcchh aa ss ee dd

bb yy lloo ccaa ll aa uu tt hh oo rr iitt iiee ss oo rr tt hh ee iirr aa pp pp rroo vvee dd aa gg ee nn tt ss

•• IInn pp uu tt ss iimm pp oo rr tt ee dd bb yy TTaa nn ee llee cc LLtt dd ffoo rr mm aa nn uu ffaa cc tt uu rr iinn gg tt rraa nn ss ffoo rrmm ee rrss aa nn dd ss ww iitt cchh gg ee aa rr ss