Africa: Tax Changes

Law No. 28/20 of 22 July has been approved, indicating that the tax table for the tax on Employment Income will change.

 

The tax authority (AGT) has confirmed that the effective date is 1 September 2020.

 

The table changes as follows:

 

 

Monthly Income Bracket

Tax Rate

Fixed Amount (KZ)

From (KZ)

To (KZ)

0,00

70 000,00

0%

0

70 000,01

100 000,00

10%

3 000

100 000,01

150 000,00

13%

6 000

150 000,01

200 000,00

16%

12 500

200 000,01

300 000,00

18%

31 250

300 000,01

500 000,00

19%

49 250

500 000,01

1 000 000,00

20%

87 250

1 000 000,01

1 500 000,00

21%

187 250

1 500 000,01

2 000 000,00

22%

292 250

2 000 000,01

2 500 000,00

23%

402 250

2 500 000,01

5 000 000,00

24%

517 250

5 000 000,01

10 000 000,00

24.5%

1 117 250

10 000 000,01

and above

25%

2 342 250

 

The Option 2 Tax Tables have been deleted:

 

  • ANN002

  • BIWK010

  • BIWK020

  • MONTH002

  • WEEK010

  • WEEK020

 

You will need to relink the tax table if you were using Option 2.

 

The following tax tables have been amended accordingly:

 

  • ANN001 – Annual Tax Table

  • MONTH001 – Monthly Tax Table

  • WEEK001 – Weekly Tax Table 52

  • WEEK002 - Weekly Tax Table 53

  • BIWK001 - Bi-Weekly Tax Table 26

  • BIWK002 - Bi-Weekly Tax Table 27

 

 

The tax changes were released on 14 July.

 

The Finance Act of 2020 was published with tax changes for Tanzania.

 

This is a Supplement to the Gazette of the United Republic of Tanzania No.8. Vol. 101 dated 19th June 2020.

 

The new Monthly Tax Table is effective from 1 July 2020:

 

Monthly Taxable Income

Tax Rate on Income Bracket

From TZS

To TZS

0.00

270 000.00

0%

270 000.01

520 000.00

9%

520 000.01

760 000.00

20%

760 000.01

1 000 000.00

25%

 

Important Notice:  Ensure that you are making use of monthly tax tables to avoid tax recalculations based on previous period’s income .

 

 

The tax changes affect tax on Employment Income and were released on 28 July.

 

The Finance Act, No 8 of 2020 was published with changes affecting tax on employment income.

 

Enacted provision: The Act has removed the exemption from tax of bonuses, overtime and retirement benefits paid to employees whose taxable employment income before bonus and overtime allowances does not exceed the lowest tax band.

 

Previously, employees whose taxable employment income before bonus and overtime allowances did not exceed the lowest tax band (below KES 12,298 per month) were not subject to PAYE on receipt of bonuses and overtime allowances over and above their basic pay.

 

Effective date is 30 June 2020.

 

Important Notice: 

After updating to this tax file, you have to re-link the affected bonus, overtime and retirement benefit earning definitions to either the Periodic or the Normal Taxable Earning Rule to ensure these values are now included in Taxable Income. 

Linking should be done on the Africa Rule Linking Screen. (Payroll > Definitions > Africa Rule Linking)

 

 

After re-linking the Earning Definitions, it is advisable to do a General Recalculation in the company: 

 

Access your Kenya Company. 

 

From the Main Menu, click on Payroll and then select General Recalc. 

 

When you get the message “Do you want to Recalculate the Earnings and Deductions for ALL Employees?” click on Yes.

 

 

These tax changes were released on 21 August.

 

The Zimbabwe Revenue Authority (ZIMRA) has issued the new RTGS (Zimbabwe Dollar) tax tables which should apply from 01 August 2020.

 

The current 2020 tax year is therefore split into two:

 

  • January 2020 to July 2020

  • August 2020 to December 2020

 

The new annual tax table for 12 months:

 

Annual Income Brackets

Rate

Fixed Amount

From (ZWL)

To (ZWL)

%

0.00

60 000.00

0%

0.00

60 000.01

180 000.00

20%

12 000.00

180 000.01

360 000.00

25%

21 000.00

360 000.01

720 000.00

30%

39 000.00

720 000.00

1 200 000.00

35%

75 000.00

1 200 000.00

and above

40%

135 000.00

 

The ZIMRA annual tax tables published are pro-rated for 5 months.

 

Finance Act No 3 of 2019 included the following Tax Credit Changes

 

The following tax credit limits were increased from ZWL7 200 to ZWL9 000:

 

  • Blind person’s credit

  • Mentally or physically disabled person credit

  • Credit for taxpayers over 55 years of age

 

Effective 1 January 2020.