VAT Act implications to businesses

The Parliamentary Public Accounts Committee (PAC) has directed the Treasury and Tanzania Revenue Authority (TRA) to start implementing the 2014 Value Added Tax (VAT) Act to maximize the revenue collection database in the country.

Some of my clients especially in the health care industry have been asking me , why are they getting 1099s at the end of each year, which result to a tax debt or a very small refund?

The fact is; if you are getting a 1099 it means that you are a contract and not an employee, therefore you receive your paycheck at a gross amount, no Federal , state, unemployment taxes(100%) nor Medicare or social security.

Therefore when you file your taxes you are paying for the following :

1. Federal taxes

2....

Habari ya mijini hiyo

CHAMA Cha Mapinduzi (CCM) kimetaka wabunge wake, kuhakikisha wanafanya tathmini na kupitia upya Sheria ya Kodi ya Ongezeko la Thamani (VAT) na kuweka viwango vya tozo hiyo, kulingana na huduma inayotolewa kupunguza malalamiko ya wananchi.

Serikali itawasilisha bungeni rasimu ya maboresho ya Kodi ya Ongezeko la Thamani (VAT) ambayo itafuta misamaha ya kodi hiyo.

The news that the government plans to introduce Value Added Tax (VAT) on insurance services has raised some concern.The authorities may want to proceed cautiously on this agenda.

>Hatima ya Muswada wa Sheria ya Kodi ya Ongezeko la Thamani (VAT), kujadiliwa katika Mkutano wa 15 wa Bunge iko mikononi mwa Serikali, baada ya Kamati za Kudumu za Bunge kuupinga na kupendekeza urejeshwe katika kamati za kisekta ili ujadiliwe upya.

A new VAT law is about to be introduced by the government which shall repeal the current VAT Act 1997.