mwambojoke
JF-Expert Member
- Oct 12, 2011
- 1,060
- 630
The concept of PAYE is based on 6 levels as following:
Level 1
Pension amount equal to 10% of the gross salary is not taxable
Hence
Taxable salary = Gross Salary – Pension amount
Level 2
Taxable salary that is equal or less than TZS. 170,000/= is not chargeable
Level 3
Taxable salary Between TZS. 170,000/= and TZS. 360,000/= is charged 14%
Level 4
Taxable salary Between TZS. 360,000/= and TZS. 540,000/= is charged 20% Plus tax from Level 3
Level 5
Taxable salary Between TZS. 540,000/= and TZS. 720,000/= is charged 25% Plus tax from Level 4
Level 6
Taxable salary above TZS. 720,000/= is charged 30% Plus tax from Level 5
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Based on this concept
A staff whose gross salary is TZS 1,000,000/= (One million Tanzanian Shillings) as an example is taxed as follows:
Level 1
Pension amount equal to 10% of the gross salary is not taxable
Hence
Taxable salary = Gross Salary – Pension amount
Level 2
Taxable salary that is equal or less than TZS. 170,000/= is not chargeable
Level 3
Taxable salary Between TZS. 170,000/= and TZS. 360,000/= is charged 14%
Level 4
Taxable salary Between TZS. 360,000/= and TZS. 540,000/= is charged 20% Plus tax from Level 3
Level 5
Taxable salary Between TZS. 540,000/= and TZS. 720,000/= is charged 25% Plus tax from Level 4
Level 6
Taxable salary above TZS. 720,000/= is charged 30% Plus tax from Level 5
Download hii excel calculator hapa
http://www.kivuyo.com/?file_id=24
Based on this concept
A staff whose gross salary is TZS 1,000,000/= (One million Tanzanian Shillings) as an example is taxed as follows: