The TRA Calculator is an online calculator system that is used to determine the value of old or used motor vehicles so that they can be sold to different customers.
In this article we’ve compiled full set article that provide information about TRA calculator and knowledge on Valuation and it’s associated terms such as depreciation.
When a property stays for a long period of time, it tends to experience depreciation. Depreciation means a decrease in the value of an asset over time due to wear and tear. Depreciation is caused by four factors.
Asset cost: This is the original cost of property less any trade discount, in addition to all costs that were essential to bring the asset to a useable condition.
Scrap Value: This is salvage value that is expected to be realized after the sale of an asset at the end of its useful life.
Useful Life: This means the economic life of an asset or property. It can be calculated in terms of year, hours, months, output unit, and kilometers (in the case of used vehicle valuation).
Obsolete: a state of being in which an object is no longer maintained, even if it is still in good working order.
What is Valuation?
“Valuation is the process of establishing an estimate of different things before they are sold or rented. There are different kinds of valuation, such as valuation of buildings, valuation of used motor vehicles, valuation of land, and many others. The main purpose of valuation is generally to track the value of certain properties at present.
Why is Valuation Important?
The valuation is done so as to facilitate the following:
- Buying, selling, or leasing of property
- When it is necessary to buy or sell a property, its valuation is required.
- To calculate the tax value
- To assess the tax on a property, its valuation is required. Taxes may be municipal tax, wealth tax, property tax, etc., and all the taxes are fixed on the valuation of the property.
- Rent Function
A valuation is required in order to determine the rent of a property. Rent is usually fixed at a certain percentage of the amount of valuation, which is usually 6% to 10% of the valuation.
- Security of loans or Mortgage
When loans are taken against the security of the property, its valuation is required.
- Compulsory acquisition
Whenever a property is acquired by law, compensation is paid to the owner. To determine the amount of compensation, a valuation of the property is required.
A property’s valuation is also required for insurance, betterment charges, speculations etc.
Valuation of Used Car:
The value of a car depends on the type of car, its structure and durability, on the situation, size, shape, etc. Valuation also depends on the material usage; doors, windows, tires, etc.
When a car is about to be purchased, a lease out valuation is necessary. Obtaining the original cost of a car and then estimating the current cost by looking at different factors such as life cycle, etc.
Six Methods of Valuation of Properties
- Rental Method of Valuation
- Direct Comparisons of the capital value
- Valuation based on the profit
- Valuation based on the cost
- Development method of Valuation
- Depreciation method of Valuation
TRA Calculator
The Tanzania revenue authority, TRA, has established an online portal website (TRA used car calculator) where people from different parts of the world can check the tax price for exporting used cars from countries like Japan, South Africa, and many other countries selling cheap and used cars.
How to use the gateway TRA calculator
The Tanzania revenue authority, TRA, has established an online portal website (TRA used car calculator) where people from different parts of the world can check the tax price for exporting used cars from countries like Japan, South Africa, and many other countries selling cheap and used cars.
Select the appropriate details in order to get the right tax to pay
Complete All Six Boxes by selecting the vehicles details and click: Calculate
- Make (used car type)
- Model and body
- Year of manufacture
- Fuel type and engine
- You need to be careful about the country of manufacture you will be required to select. I have just sorted out the ones above because many people confuse them, leading to the wrong tax being calculated. If you don’t know, ask your used car seller. The TRA used car calculator sometimes misses your car details.
The system will display the results of the search with CIF Value, Duties, Taxes and Fees to be paid .
Vehicle is not listed in gateway TRA calculator
Sometimes you may find that the used car you want to calculate its tax price is not listed in the gateway TRA calculator. Submit details CLICK HERE
TRA reference code
Do you have the TRA reference code? To save time, you can submit it through the gateway system; simply enter the reference code and the system will calculate the property tax for you.
Useful Links: TRA Calculator
