Tax computation on imported Motor Vehicle

Tax computation on imported Motor Vehicle

mojoki

mojoki

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Tax Computation on Imported Motor Vehicles

For non-utility vehicles of less than eight years old from the year of manufacture.
Illustration 1
Imported non-utility vehicles with engine capacity between 0-1000 cc. The computation of duties and taxes will be based on the applicable rates as follows:
Import duty 25%
Excise duty 0%
VAT 18%
Example
Imported non-utility vehicle with CIF value of USD 2500 on arrival in Tanzania (Assume the exchange rate is Tshs 1600 per USD). The Calculation will be as follows:
Duty/Tax TypeComputationDuty/Tax payable
a) Import dutyIn order to obtain import duty to be paid, take the certified customs value and multiply by the import duty rate (25%) USD 2500 x 25% =625 USD
USD 625 x Tshs 1600 = Tshs 1,000,000
Tshs 1,000,000
b) Excise dutyIn order to obtain excise duty value, take the certified customs value plus import duty calculated in (a). Then multiply by the excise duty rate (0%).
USD 2500 + USD 625 =USD 3125
USD 3125 X 0% = USD 0
USD 0 X Tshs 1600 = Tshs 0

Tshs 0
c) Value Added Tax (VAT)In order to get the value of VAT, take the certified customs value and add to it the import duty and the excise duty calculated in (b). Then multiply by the VAT rate (18%)
USD 2500 + USD 625 +USD 0 =USD 3125
USD 3125 X 18% = USD 562.5
USD 562.5 X Tshs 1600 = Tshs 900,000
Tshs 900,000
Total Duty & Tax PayableImport Duty + Excise Duty + VATTshs 1,900,000
Illustration 2
Imported non-utility vehicles with engine capacity between 1001- 2000cc. The computation of duties and taxes will be based on the applicable rates as follows:
Import duty 25%
Excise duty 5%
VAT 18%
Example
Imported non-utility vehicle with CIF value of USD 2500 on arrival in Tanzania (Assume the exchange rate is Tshs 1600 per USD). The Calculation will be as follows:

Duty/Tax TypeComputationDuty/Tax payable
a) Import dutyIn order to obtain import duty to be paid, take the certified customs value and multiply by the import duty rate (25%) USD 2500 x 25% =625 USD
USD 625 x Tshs 1600 = Tshs 1,000,000
Tshs 1,000,000
b) Excise dutyIn order to obtain excise duty value, take the certified customs value plus import duty calculated in (a). Then multiply by the excise duty rate (5%).
USD 2500 + USD 625 =USD 3125
USD 3125 X 5% = USD 156.25
USD 156.25 X Tshs 1600 = Tshs 250,000

Tshs 250,000
c) Value Added Tax (VAT)In order to get the value of VAT, take the certified customs value and add to it the import duty and the excise duty calculated in (b). Then multiply by the VAT rate (18%)
USD 2500 + USD 625 +USD 156.25 =USD 3281.25
USD 3281.25 X 18% = USD 590.63
USD 590.63 X Tshs 1600 = Tshs 945,008
Tshs 945,008
Total Duty & Tax PayableImport Duty + Excise Duty + VATTshs 2,195,008

Illustration 3
Imported non-utility vehicles with engine capacity over 2000 cc. The computation of duties and taxes will be based on the applicable rates as follows:
Import duty 25%
Excise duty 10%
VAT 18%
Example
Imported non-utility vehicle with CIF value of USD 2500 on arrival in Tanzania (Assume the exchange rate is Tshs 1600 per USD). The Calculation will be as follows:

Duty/Tax TypeComputationDuty/Tax payable
a) Import dutyIn order to obtain import duty to be paid, take the certified customs value and multiply by the import duty rate (25%) USD 2500 x 25% =625 USD
USD 625 x Tshs 1600 = Tshs 1,000,000
Tshs 1,000,000
b) Excise dutyIn order to obtain excise duty value, take the certified customs value plus import duty calculated in (a). Then multiply by the excise duty rate (10%).
USD 2500 + USD 625 =USD 3125
USD 3125 X 10% = USD 312.5
USD 312.5 X Tshs 1600 = Tshs 500,000

Tshs 500,000
c) Value Added Tax (VAT)
In order to get the value of VAT, take the certified customs value and add to it the import duty and the excise duty calculated in (b). Then multiply by the VAT rate (18%)
USD 2500 + USD 625 +USD 312.5 =USD 3437.5
USD 3437.5 X 18% = USD 618.75
USD 618.75 X Tshs 1600 = Tshs 990,000
Tshs 990,000
Total Duty & Tax PayableImport Duty + Excise Duty + VATTshs 2,490,000

B. For vehicles of more than eight years from the year of manufacture.
Illustration 1
Imported non-utility vehicles with engine capacity between 0-1000 cc. The computation of duties and taxes will be based on the applicable rates as follows:
Import duty 25%
Excise duty on cubic capacity 0%
Excise duty on age 20%
VAT 18%
Example
Imported non-utility vehicle with CIF value of USD 2500 on arrival in Tanzania (Assume the exchange rate is Tshs 1600 per USD). The Calculation will be as follows:

Duty/Tax TypeComputationDuty/Tax payable
a) Import dutyIn order to obtain import duty to be paid, take the certified customs value and multiply by the import duty rate (25%) USD 2500 x 25% =625 USD
USD 625 x Tshs 1600 = Tshs 1,000,000Tshs 1,000,000
b) Excise dutyIn order to obtain excise duty value, take the certified customs value plus import duty calculated in (a). Then multiply by the excise duty rate (0% on cubic capacity and 20% on age).
Excise duty on cubic capacity:
USD 2500 + USD 625 =USD 3125
USD 3125 X 0% = USD 0
USD 0 X Tshs 1600 = Tshs 0
Excise duty on age:
USD 2500 + USD 625 =USD 3125
USD 3125 X 20% = USD 625
USD 625 X Tshs 1600 = Tshs 1,000,000
Tshs 1,000,000
c) Value Added Tax (VAT)
In order to get the value of VAT, take the certified customs value and add to it the import duty and the excise duty calculated in (b). Then multiply by the VAT rate (18%)
USD 2500 + USD 625 +USD 0 + USD 625 =USD 3750
USD 3750 X 18% = USD 675
USD 675 X Tshs 1600 = Tshs 1,080,000
Tshs 1,080,000
Total Duty & Tax PayableImport Duty + Excise Duty + VATTshs 3,080,000
Illustration 2
Imported non-utility vehicles with engine capacity between 1001-2000 cc. The computation of duties and taxes will be based on the applicable rates as follows:
Import duty 25%
Excise duty on cubic capacity 5%
Excise duty on age 20%
VAT 18%

Example
Imported non-utility vehicle with CIF value of USD 2500 on arrival in Tanzania (Assume the exchange rate is Tshs 1600 per USD). The Calculation will be as follows:


Duty/Tax TypeComputationDuty/Tax payable
a) Import dutyIn order to obtain import duty to be paid, take the certified customs value and multiply by the import duty rate (25%) USD 2500 x 25% =625 USD
USD 625 x Tshs 1600 = Tshs 1,000,000
Tshs 1,000,000
b) Excise dutyIn order to obtain excise duty value, take the certified customs value plus import duty calculated in (a). Then multiply by the excise duty rate (5% on cubic capacity and 20% on age).
Excise duty on cubic capacity:
USD 2500 + USD 625 =USD 3125
USD 3125 X 5% = USD 156.25
USD 156.25 X Tshs 1600 = Tshs 250,000
Excise duty on age:
USD 2500 + USD 625 =USD 3125
USD 3125 X 20% = USD 625
USD 625 X Tshs 1600 = Tshs 1,000,000
Total Excise Duty = Tshs 250,000 + Tshs 1,000,000
Tshs 1,250,000
c) Value Added Tax (VAT)
In order to get the value of VAT, take the certified customs value and add to it the import duty and the excise duty calculated in (b). Then multiply by the VAT rate (18%)
USD 2500 + USD 625 +USD 156.25 + USD 625 =USD 3906.25
USD 3906.25 X 18% = USD 703.13
USD 703.13 X Tshs 1600 = Tshs 1,125,008
Tshs 1,125,008
Total Duty & Tax PayableImport Duty + Excise Duty + VATTshs 3,375,008
Illustration 3
Imported non-utility vehicles with engine capacity over 2000 cc . The computation of duties and taxes will be based on the applicable rates as follows:
Import duty 25%
Excise duty on cubic capacity 10%
Excise duty on age 20%
VAT 18%
Example
Imported non-utility vehicle with CIF value of USD 2500 on arrival in Tanzania (Assume the exchange rate is Tshs 1600 per USD). The Calculation will be as follows:

Duty/Tax TypeComputationDuty/Tax payable
a) Import dutyIn order to obtain import duty to be paid, take the certified customs value and multiply by the import duty rate (25%) USD 2500 x 25% =625 USD
USD 625 x Tshs 1600 = Tshs 1,000,000
Tshs 1,000,000
b) Excise dutyIn order to obtain excise duty value, take the certified customs value plus import duty calculated in (a). Then multiply by the excise duty rate (10% on cubic capacity and 20% on age).
Excise duty on cubic capacity:
USD 2500 + USD 625 =USD 3125
USD 3125 X 10% = USD 312.5
USD 312.5 X Tshs 1600 = Tshs 500,000
Excise duty on age:
USD 2500 + USD 625 =USD 3125
USD 3125 X 20% = USD 625
USD 625 X Tshs 1600 = Tshs 1,000,000
Total Excise Duty = Tshs 500,000 + Tshs 1,000,000
Tshs 1,500,000
c) Value Added Tax (VAT)
In order to get the value of VAT, take the certified customs value and add to it the import duty and the excise duty calculated in (b). Then multiply by the VAT rate (18%)
USD 2500 + USD 625 +USD 312.5 + USD 625 =USD 4062.5
USD 4062.5 X 18% = USD 731.25
USD 731.25 X Tshs 1600 = Tshs 1,170,000
Tshs 1,170,000
Total Duty & Tax PayableImport Duty + Excise Duty + VATTshs 3,670,000
Note:
1) Non - Utility vehicles means luxurious vehicles imported solely for private use that is not for public or commercial use.
2) Customs value is the value approved by Customs as taxable value of the imported goods.

By : Kessy Juma


In this world nothing is certain than Tax and Death.
 
Umenisaidia sana..nmeongeza hii kama part ya notes za course yangu ya semester hii!
 
mojoki said:
Tax Computation on Imported Motor Vehicles

For non-utility vehicles of less than eight years old from the year of manufacture.
Illustration 1
Imported non-utility vehicles with engine capacity between 0-1000 cc. The computation of duties and taxes will be based on the applicable rates as follows:
Import duty 25%
Excise duty 0%
VAT 18%
Example
Imported non-utility vehicle with CIF value of USD 2500 on arrival in Tanzania (Assume the exchange rate is Tshs 1600 per USD). The Calculation will be as follows:
Duty/Tax TypeComputationDuty/Tax payable
a) Import dutyIn order to obtain import duty to be paid, take the certified customs value and multiply by the import duty rate (25%) USD 2500 x 25% =625 USD
USD 625 x Tshs 1600 = Tshs 1,000,000
Tshs 1,000,000
b) Excise dutyIn order to obtain excise duty value, take the certified customs value plus import duty calculated in (a). Then multiply by the excise duty rate (0%).
USD 2500 + USD 625 =USD 3125
USD 3125 X 0% = USD 0
USD 0 X Tshs 1600 = Tshs 0

Tshs 0
c) Value Added Tax (VAT)In order to get the value of VAT, take the certified customs value and add to it the import duty and the excise duty calculated in (b). Then multiply by the VAT rate (18%)
USD 2500 + USD 625 +USD 0 =USD 3125
USD 3125 X 18% = USD 562.5
USD 562.5 X Tshs 1600 = Tshs 900,000
Tshs 900,000
Total Duty & Tax PayableImport Duty + Excise Duty + VATTshs 1,900,000
Illustration 2
Imported non-utility vehicles with engine capacity between 1001- 2000cc. The computation of duties and taxes will be based on the applicable rates as follows:
Import duty 25%
Excise duty 5%
VAT 18%
Example
Imported non-utility vehicle with CIF value of USD 2500 on arrival in Tanzania (Assume the exchange rate is Tshs 1600 per USD). The Calculation will be as follows:

Duty/Tax TypeComputationDuty/Tax payable
a) Import dutyIn order to obtain import duty to be paid, take the certified customs value and multiply by the import duty rate (25%) USD 2500 x 25% =625 USD
USD 625 x Tshs 1600 = Tshs 1,000,000
Tshs 1,000,000
b) Excise dutyIn order to obtain excise duty value, take the certified customs value plus import duty calculated in (a). Then multiply by the excise duty rate (5%).
USD 2500 + USD 625 =USD 3125
USD 3125 X 5% = USD 156.25
USD 156.25 X Tshs 1600 = Tshs 250,000

Tshs 250,000
c) Value Added Tax (VAT)In order to get the value of VAT, take the certified customs value and add to it the import duty and the excise duty calculated in (b). Then multiply by the VAT rate (18%)
USD 2500 + USD 625 +USD 156.25 =USD 3281.25
USD 3281.25 X 18% = USD 590.63
USD 590.63 X Tshs 1600 = Tshs 945,008
Tshs 945,008
Total Duty & Tax PayableImport Duty + Excise Duty + VATTshs 2,195,008

Illustration 3
Imported non-utility vehicles with engine capacity over 2000 cc. The computation of duties and taxes will be based on the applicable rates as follows:
Import duty 25%
Excise duty 10%
VAT 18%
Example
Imported non-utility vehicle with CIF value of USD 2500 on arrival in Tanzania (Assume the exchange rate is Tshs 1600 per USD). The Calculation will be as follows:

Duty/Tax TypeComputationDuty/Tax payable
a) Import dutyIn order to obtain import duty to be paid, take the certified customs value and multiply by the import duty rate (25%) USD 2500 x 25% =625 USD
USD 625 x Tshs 1600 = Tshs 1,000,000
Tshs 1,000,000
b) Excise dutyIn order to obtain excise duty value, take the certified customs value plus import duty calculated in (a). Then multiply by the excise duty rate (10%).
USD 2500 + USD 625 =USD 3125
USD 3125 X 10% = USD 312.5
USD 312.5 X Tshs 1600 = Tshs 500,000

Tshs 500,000
c) Value Added Tax (VAT)
In order to get the value of VAT, take the certified customs value and add to it the import duty and the excise duty calculated in (b). Then multiply by the VAT rate (18%)
USD 2500 + USD 625 +USD 312.5 =USD 3437.5
USD 3437.5 X 18% = USD 618.75
USD 618.75 X Tshs 1600 = Tshs 990,000
Tshs 990,000
Total Duty & Tax PayableImport Duty + Excise Duty + VATTshs 2,490,000

B. For vehicles of more than eight years from the year of manufacture.
Illustration 1
Imported non-utility vehicles with engine capacity between 0-1000 cc. The computation of duties and taxes will be based on the applicable rates as follows:
Import duty 25%
Excise duty on cubic capacity 0%
Excise duty on age 20%
VAT 18%
Example
Imported non-utility vehicle with CIF value of USD 2500 on arrival in Tanzania (Assume the exchange rate is Tshs 1600 per USD). The Calculation will be as follows:

Duty/Tax TypeComputationDuty/Tax payable
a) Import dutyIn order to obtain import duty to be paid, take the certified customs value and multiply by the import duty rate (25%) USD 2500 x 25% =625 USD
USD 625 x Tshs 1600 = Tshs 1,000,000Tshs 1,000,000
b) Excise dutyIn order to obtain excise duty value, take the certified customs value plus import duty calculated in (a). Then multiply by the excise duty rate (0% on cubic capacity and 20% on age).
Excise duty on cubic capacity:
USD 2500 + USD 625 =USD 3125
USD 3125 X 0% = USD 0
USD 0 X Tshs 1600 = Tshs 0
Excise duty on age:
USD 2500 + USD 625 =USD 3125
USD 3125 X 20% = USD 625
USD 625 X Tshs 1600 = Tshs 1,000,000
Tshs 1,000,000
c) Value Added Tax (VAT)
In order to get the value of VAT, take the certified customs value and add to it the import duty and the excise duty calculated in (b). Then multiply by the VAT rate (18%)
USD 2500 + USD 625 +USD 0 + USD 625 =USD 3750
USD 3750 X 18% = USD 675
USD 675 X Tshs 1600 = Tshs 1,080,000
Tshs 1,080,000
Total Duty & Tax PayableImport Duty + Excise Duty + VATTshs 3,080,000
Illustration 2
Imported non-utility vehicles with engine capacity between 1001-2000 cc. The computation of duties and taxes will be based on the applicable rates as follows:
Import duty 25%
Excise duty on cubic capacity 5%
Excise duty on age 20%
VAT 18%

Example
Imported non-utility vehicle with CIF value of USD 2500 on arrival in Tanzania (Assume the exchange rate is Tshs 1600 per USD). The Calculation will be as follows:


Duty/Tax TypeComputationDuty/Tax payable
a) Import dutyIn order to obtain import duty to be paid, take the certified customs value and multiply by the import duty rate (25%) USD 2500 x 25% =625 USD
USD 625 x Tshs 1600 = Tshs 1,000,000
Tshs 1,000,000
b) Excise dutyIn order to obtain excise duty value, take the certified customs value plus import duty calculated in (a). Then multiply by the excise duty rate (5% on cubic capacity and 20% on age).
Excise duty on cubic capacity:
USD 2500 + USD 625 =USD 3125
USD 3125 X 5% = USD 156.25
USD 156.25 X Tshs 1600 = Tshs 250,000
Excise duty on age:
USD 2500 + USD 625 =USD 3125
USD 3125 X 20% = USD 625
USD 625 X Tshs 1600 = Tshs 1,000,000
Total Excise Duty = Tshs 250,000 + Tshs 1,000,000
Tshs 1,250,000
c) Value Added Tax (VAT)
In order to get the value of VAT, take the certified customs value and add to it the import duty and the excise duty calculated in (b). Then multiply by the VAT rate (18%)
USD 2500 + USD 625 +USD 156.25 + USD 625 =USD 3906.25
USD 3906.25 X 18% = USD 703.13
USD 703.13 X Tshs 1600 = Tshs 1,125,008
Tshs 1,125,008
Total Duty & Tax PayableImport Duty + Excise Duty + VATTshs 3,375,008
Illustration 3
Imported non-utility vehicles with engine capacity over 2000 cc . The computation of duties and taxes will be based on the applicable rates as follows:
Import duty 25%
Excise duty on cubic capacity 10%
Excise duty on age 20%
VAT 18%
Example
Imported non-utility vehicle with CIF value of USD 2500 on arrival in Tanzania (Assume the exchange rate is Tshs 1600 per USD). The Calculation will be as follows:

Duty/Tax TypeComputationDuty/Tax payable
a) Import dutyIn order to obtain import duty to be paid, take the certified customs value and multiply by the import duty rate (25%) USD 2500 x 25% =625 USD
USD 625 x Tshs 1600 = Tshs 1,000,000
Tshs 1,000,000
b) Excise dutyIn order to obtain excise duty value, take the certified customs value plus import duty calculated in (a). Then multiply by the excise duty rate (10% on cubic capacity and 20% on age).
Excise duty on cubic capacity:
USD 2500 + USD 625 =USD 3125
USD 3125 X 10% = USD 312.5
USD 312.5 X Tshs 1600 = Tshs 500,000
Excise duty on age:
USD 2500 + USD 625 =USD 3125
USD 3125 X 20% = USD 625
USD 625 X Tshs 1600 = Tshs 1,000,000
Total Excise Duty = Tshs 500,000 + Tshs 1,000,000
Tshs 1,500,000
c) Value Added Tax (VAT)
In order to get the value of VAT, take the certified customs value and add to it the import duty and the excise duty calculated in (b). Then multiply by the VAT rate (18%)
USD 2500 + USD 625 +USD 312.5 + USD 625 =USD 4062.5
USD 4062.5 X 18% = USD 731.25
USD 731.25 X Tshs 1600 = Tshs 1,170,000
Tshs 1,170,000
Total Duty & Tax PayableImport Duty + Excise Duty + VATTshs 3,670,000
Note:
1) Non - Utility vehicles means luxurious vehicles imported solely for private use that is not for public or commercial use.
2) Customs value is the value approved by Customs as taxable value of the imported goods.

By : Kessy Juma


In this world nothing is certain than Tax and Death.
Click to expand...
Wonderful knowledge, thanks
 
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