Tanzania Revenue Authority : Corporation Tax Payment Procedure

Name of the Organization : Tanzania Revenue Authority
Type of Facility : Corporation Tax Payment Procedure
Country : Tanzania

Official Website : https://www.tra.go.tz/

Corporation Tax  Payment Procedure :

** Corporation Tax is a tax charged on the taxable incomes (Profits) of entities such as limited companies and other organizations including clubs, societies, associations and other unincorporated bodies.

Related : Tanzania Revenue Authority Withholding Tax Rates : www.statusin.org/4793.html

** This guide provides basic overview of Corporation Tax. It explains the meaning of “Corporation Tax”, who is liable and what you must do and when if you are subject to Corporation Tax requirements. It outlines how the tax is calculated, what are the applicable tax rates and when to pay.
** It also explains common income tax terms such as “Self Assessment”, “Accounting Period” and “Taxable Profits”.
** Corporation Tax is a tax charged on taxable income (Profits) of entities such as limited companies, institutions or organizations including clubs, societies, associations, co-operatives, charities and other unincorporated bodies.

Taxable incomes (profits) for charging Corporation Tax include :
** Profits from business undertakings
** Profits from conducting investments (except such dividends which are taxed differently as final taxes)
** Tax paid out of turnover of companies with perpetual unrelieved losses for three consecutive years.

Which Entities (Persons) are required to pay corporation tax :
a) Limited Companies
b) Trusts
c) Clubs
d) Non-Governmental Associations
e) Co-operative Societies
f) Charitable Organizations
g) Domestic Permanent Establishment (Branches of non-resident companies)
h) Political Parties
i) Government Agencies

Are Partnerships required to pay corporation tax :
Partnerships are not liable to pay income tax. However, the partners are charged income tax on the profits distributed from partnership basing on the agreed sharing ratio.

What is the year of income :
For income tax purposes year of income means a calendar year of twelve months period (meaning the period starting from 1st January to 31st December). However an entity may apply in writing to the Commissioner for approval to change the entity’s year of income from calendar year or twelve month period to another twelve month-period previously approved. Year of income is important for tax accounting purposes.

Statement of estimated tax payable :
Every registered company and individuals who are required to prepare the audited account shall file to TRA a statement which shows the estimated tax payable in each year of income.

Forms : https://www.tra.go.tz/

Due dates :
The statement of estimated tax payable shall be submitted to TRA office either of the following dates depending on your accounting period :
i. On or before 31st March
ii. On or before 30th June
iii. On or before 30th September
iv. On or before 31st December

The payment of first instalment tax is due when the statements of estimated tax payable (provisional returns) are submitted, and then other instalments shall be paid on due dates above.

Late payment of tax :
Shall be charged interest at the prevailing statutory rate at the time of imposition plus 5% per annum

Final return of income :
The final returns shall be submitted within six months from the end of the accounting period. The return must be prepared or certified by a Certified Public Accountant in Public Practice who is approved by the National Board of Accountants and Auditors (NBAA)