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Tanzania Income Tax Rates 2015

Individuals

Taxable Income (TZS)

Tax Rate

Up to 2,040,000.00

NIL

2,040,000.00 - 4,320,000.00

11% on excess of 2,040,000.00

4,320,000.00 - 6,480,000.00

250,800.00 plus 20% on excess of 4,320,000.00

6,480,000.00 - 8,640,000.00

682,800.00 plus 25% on excess of 6,480,000.00

Over 8,640,000.00

1,222,800.00 plus 30% on excess of 8,640,000.00

 

Corporations    

Type

%

Resident

30

Non-resident

30

Listed companies at Dar Es Salaam Stock Exchange (DSE)

  25*

Repatriated income of a non-resident with DPE  

10

*Applicable in 3 consecutive years from the date of listing of companies with at least 30% of its equity ownership issued to the public.

CAPITAL GAINS TAX (CGT)

Interest in land or building (investment income)                                                                                                                                                 

Individuals:

  • Resident 10*                                                                                                     
  • Non-resident 20*                                                                           

*Single installment at time of realization of gains from investment

Exemptions:

  • Gains on sale of private residence of TZS 15 million or less (About USD 7,500)
  • Agriculture land with a market value of less than 10 million (About USD 5,000)

Shares or securities

Individuals

  1. Residents  10
  2. Non-residents  20 

Companies

  1. Residents  30
  2. Non-residents  30

Exemptions:

Dar es Salaam Stock Exchange (DSE) shares held by a person with shareholding of less than 25%.

LOSSES

  • Carried forward indefinitely and can be used to offset profits from the same source. 
  • Alternative Minimum Tax (ATM) at the rate of 0.3% of the turnover for corporations with unrelieved losses for three consecutive years.   

VALUE ADDED TAX (VAT)

The standard rate is 18%.

Registration threshold is TZS 100 million (about USD 50,000), however, professionals are registered irrespective of the threshold.

Zero- rating: mainly exports and selected international services to non-residents.

Exemptions: Unprocessed foods for human consumption, basic social services (water, health and educational services), agricultural inputs, financial services (except general insurance), land and lease of residential premises.

TREATY NETWORK: 9 Countries.

WITHHOLDING TAX

Residents

Non-residents %)

Dividends:

 

 

From resident company to another resident company controlling 25% of shares or more 

5%

N/A

From non-resident to resident person 

N/A

30%

From DSE-listed company 

5%*

5%*

From other companies 

10%

10%

Interest:  

10%

10%

Royalties:

15%

15%

Exception
*Dividends received by a person who either alone or with other associate controls less than 25% of the controlling shares of the issuer company is exempted.


Doing Business Abroad - Tax Rates 2015 /2016

 
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Contact Us
Christopher E. Msuya
Horwath Tanzania
13 Zanaki Street
Dar Es Salaam, Tanzania
+255 22 2115251 - 3