Do you know?
Income derived by independent professionals and providers of, technical, management,
construction and training services is excluded from presumptive tax regime???
Through Finance Act of 2022, among the changes of tax policy introduced under Income
Tax Act (ITA) included exclusion of income derived by independent professionals and
providers of, technical, management, construction and training services from
presumptive income tax, paragraph 2 of First Schedule of ITA.
Before the changes all individuals who derive their income exclusively from a business
for a year of income having a source in the United Republic and meet all requirements
below, were assessed income tax payable under presumptive income tax as required
under paragraph 2(3) of First Schedule of ITA.
1. The individual should be a resident for the year of income,
2. The individual's income for a year of income consists exclusively of income from
a business having a source in the United Republic;
3. The turnover of the business does not exceed Tshs. 100 million: and
4. The individual does not elect to dis-apply the presumptive rules
Following the changes made, these individual will be required to
1) File statement of estimate tax payable as per section 89 of ITA;
2) Pay estimated income tax as per section 88 of ITA;
3) File final return of income tax, audited financial statements including tax
computation as per section 91 of ITA;
4) Pay the final tax liability as per final return of income filed not later than six
months after the end of each year of income