Tanzania is one of the countries in Africa with high corporate tax rates.
And since the African continent also features the highest corporate tax rates in the world, Tanzania should be hitting the roof in global taxation.
In the report ‘How Small Businesses Are Taxed in Tanzania,’ the Tanzania Investment and Consultant Group (TICG) Limited, finds that Tanzania has a high corporate tax rate of 30 Percent.
According to the data from the TICGL Economic Research Center, Tanzania is placed among the top 10 African countries with the highest corporate tax rates.
Other countries such as Kenya, Nigeria, Ethiopia and South Africa, also have a corporate tax rate of 30 percent.
Business owners have more breathing room in Ghana, Angola, and Côte d’Ivoire, countries that have been found to feature a slightly lower corporate tax rate of 25 percent.
When it comes to global comparison in the Corporate Tax Rates, the African Continent seems to charge more taxes and at highest rates.
Corporate taxes are the taxes charged on the profits of any business establishment.
The taxes are paid on a company’s taxable income, which includes revenue minus cost of goods sold, general and administrative expenses, selling and marketing, research and development, depreciation, and other operating costs
Now, as it happens, corporate tax rates seem to be at their lowest in the Middle East, charged at 17.9 percent and Europe where they are fixed at 16.2 percent.
Corporate taxes are at their highest in Africa where they average at 27.6 percent, according to the report Co-Author, Amran Bhuzohera.
South America comes second in extracting highest tax rates at 26.1 percent.
The highest effective tax rate globally is in Suriname, where it gets charged at 36.0 percent.
Some small nations like Bahamas, Bahrain, Monaco, Nauru, United Arab Emirates, Vanuatu, and Vatican City have established themselves as tax havens with effectively zero corporate tax rates.
In Africa it is Somalia which has the lowest effective tax rate at 12.3 percent.
On the other hand, Zambia, Guinea, Comoros, Chad, Equatorial Guinea, and Sudan have the highest effective corporate tax rate in Africa at 35.0 percent.