MANAGING TAX RISKS: Taxes applicable to oil, gas Sector in Tanzania

Tanzania has made significant natural gas discoveries of over about 55 trillion cubic feet. Production activities of some of these discoveries has already started. Oil exploration activities are also ongoing and there is a potential for more discoveries.

In our last article we noted that the taxes applicable to the oil and gas sector include the income tax which includes corporate income tax, withholding taxes and employment taxes.

In our last article we noted that although some countries have a special fiscal regime for taxing the extractive sector including oil and gas, Tanzania does not have a special tax regime for the sector.

In our series of articles on taxes applicable to the Oil and Gas sector we have noted that the taxes applicable to the Oil and Gas industry include income tax which includes corporate income tax, withholding taxes, employment taxes; capital gain tax; Value Added Tax (VAT); Customs Duty; Excise Duty; Fuel Levy and Stamp Duty etc.

In our previous articles on taxes applicable to the Oil and Gas sector we have already noted that the taxes applicable to the Oil and Gas industry include income tax which includes corporate income tax, withholding taxes, employment taxes; capital gain tax; Value Added Tax (VAT); Customs Duty; Excise Duty; Fuel Levy and Stamp Duty etc.

In our last article we noted that tax planning is an arrangement of one’s financial affairs in such a way that, without violating in any way the legal provisions, full advantage is taken of all tax exemptions, deductions, concessions, rebates, allowances and other reliefs or benefits permitted under the tax laws so that the burden of taxation on the taxpayer is reduced or minimised.

As discussed in the previous article investment tax incentives in Tanzania are offered to lead and priority sectors including agriculture, Air Aviation, Commercial buildings, Banks, Export oriented projects, Manufacturing, Natural Resources e.g. Timber, Beekeeping, Fisheries, Tourism and Tour Operations, Radio and Television Broadcasting, Transportation etc. In this article we look at tax incentives offered in the agriculture and manufacturing sectors.

MANAGING TAX RISKS: Impact of virus crisis on tax collections  The Citizen Daily

In our last article on tax planning we looked at ways of reducing the taxable income when exposed to withholding taxes. In this article we focus on payroll taxes and custom duties.