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Foreign investors face difficulties in interpreting tax laws

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Partners and Directors of RSM Eastern Africa, representing Kenya, Uganda and Tanzania, gather to celebrate 20 years of excellence in the region and their commitment to nurturing the next generation of accounting and finance professionals across Eastern Africa. The team was led by Group Chief Executive, Lina Ratansi (4th right) and Executive Chairman, Ashif Kassam (4th left). Photo | Courtesy 

By  Hellen Nachilongo

What you need to know:

  • RSM Eastern Africa Tax Consulting Supervisor, Goodluck Mboya, said many investors come to the country unaware of the local tax laws and investment regulations

Dar es Salaam. Foreign investors in Tanzania face difficulties due to varying interpretations of tax laws, which have led to penalties and financial losses.

RSM Eastern Africa Tax Consulting Supervisor, Goodluck Mboya, said many investors come to the country unaware of the local tax laws and investment regulations.

As a result, they often encounter serious issues, including penalties for tax evasion and violations of investment rules.

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“Many investors are not familiar with the country’s tax system, leading to significant financial losses and penalties,” Mr Mboya said during RSM Eastern Africa’s 20th anniversary celebrations, which brought together industry leaders, clients, and RSM representatives from Uganda, Kenya, and Tanzania.

RSM Eastern Africa Tax Consulting Manager Jovin Boke noted that Tanzania has improved tax compliance over the past five years.

“Previously, tax compliance was weak due to a lack of education and prioritisation of tax regulations. However, we are now seeing positive changes in taxpayer awareness,” he said.

Mr Boke pointed out that the Tanzanian government introduced a tax amnesty program, allowing people with overdue tax returns to file them without penalties. This initiative has encouraged the business community to comply with tax regulations.

RSM Eastern Africa executive chairman, Ashif Kassam, highlighted the company’s commitment to developing young professionals in the region. “In addition to serving our clients, we focus on developing talent through internship programs, mentorship, and continued learning opportunities in areas like taxation, law, and financial analysis,” he said.

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