Tanzania

WHT rates

* If payment relates to use of cinematography film, video tape sound recording, or any other like medium, the applicable rate is 10%; if payment is made to a resident sports entity or the Tanzania Football Federation, the applicable rate is 5%.

** Including payments by non-residents.

Note: Relief may apply to SEZ/EPZ investors, strategic investors, certain loans in respect of government projects, corporate bonds, municipal bonds, DSE bonds of at least three years and listed with effect from 1 July 2021, and certain loans to resident financial institutions from non-resident financial institutions or funds.

Double tax treaty (DTT) rates

Notes

1. The domestic WHT rate applies unless the DTT rate is lower, in which case the lower DTT rate applies.
2. The lower rate applies if the beneficial owner is a company that controls, directly or indirectly, at least 15% of the voting power in the company paying the dividends; otherwise, the higher rate applies.
3. The lower rate applies if the recipient is a company that owns at least 25% of the shares of the company paying the dividends; otherwise, the higher rate applies.
4. The lower rate applies if the recipient is a company that owns at least 25% of the shares of the company paying the dividends during the six-month period immediately preceding the date of payment of the dividends; otherwise, the higher rate applies.
5. The domestic rate applies if income is exempt from tax in Zambia.
6. The domestic rate applies in the absence of a rate specified in the DTT.
7. The DTA does not have a management, technical, or service fee article. WHT is still usually deducted.
8. Government borrowing: There is an introduction of WHT exemption on payments of interest, fees, and other payments in respect of loans to the government from non-resident banks, financial institutions, and other governments, which have a retrospective effect from 1 June 2017.