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Individuals are categorized in two groups, small individual traders who are not required to maintain audited accounts and the medium individual traders who are required to maintain audited accounts. Small traders are taxed by presumptive tax system, whereas medium are taxed based on the annual profit determined from the audited accounts.

1. a)Presumptive tax system

This is a tax system where individuals are taxed based on their annual turnover. The Taxpayers under this system are not obligated to prepare and submit audited accounts ...

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An employee who makes donation as per section 12 of the Education Fund Act, the donation is exempted from tax. However the exemption, is upon approval by the Commissioner.2. i. Income of a non-resident employee of a resident employer is subject to withholding tax of 15%. ii. The total income of non-resident individual is chargeable at the rate of 30%3. The monthly income include basic salary, overtime, bonus, commission, allowances e.g. house allowance or transport allowance and benefits in kind ...

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ICTD Research in Brief 23

This ICTD Research in Brief is a two-page summary of ICTD African Tax Administration Paper 1 by Giulia Mascagni and Fabrizio Santoro. This series is aimed at policy makers, tax administrators, fellow researchers and anyone else who is big on interest and short on time. Knowledge about tax can contribute to shaping attitudes towards compliance. Citizens with better tax education are able to navigate complex tax systems, and can avoid overpayment due to intricate reporting ...

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