In the recent Budget Speech held by the Minister of Finance, a few tax changes were proposed. To refer to a previous post on Sage City regarding these proposed changes, please click here.
Click here to view The Finance Act 2020, confirming the tax changes for Tanzania.
The following changes will affect your payroll effective from 1 July 2020:
- Amended tax tables
- The Training Levy Rate (SDL) decreased
1, AMENDMENT OF THE INCOME TAX ACT, (CAP. 332)
The below tax tables, which is effective 01 July 2020, have been released:
Before installing the software, take note of the following:
Your payroll software must be on Release 5.4a/b/c which is available on the Customer zone.
If you have an Annual Tax calculation, please click here before proceeding with the next step.
Click here to visit the software downloads page and follow the instructions below:
- Select the Africa tab
- Click on the Download button next to Tanzania Tax Changes or Premier/Sage200c: R54a/b/c (July 2020 – File Version 202007)
- Download the file, extract the contents of the zip file to your payroll folder, and overwrite any/all existing files.
For more details regarding these changes, refer to the document included in the download file.
2. AMENDMENT OF THE VOCATIONAL EDUCATION AND TRAINING ACT, (CAP. 82)
The Training Levy Rate (SDL) decreased from 4.5% to 4%, effective 1 July 2020.
To make the necessary adjustments to the methods of calculation in your system, please click here for a step by step guide.