Tanzania
Corporate - Withholding taxes
Last reviewed - 06 January 2023WHT rates
Payment | WHT (%) | |
Resident | Non-resident | |
Dividend: | ||
To a company controlling 25% or more of the voting power and holding 25% or more of the shares | 5 | 10 |
From a DSE-listed company | 5 | 5 |
Otherwise | 10 | 10 |
Interest | 10 | 10 |
Rent: | ||
Land and buildings | 10 | 10 |
Aircraft lease | 10 | 10 |
Other assets | 0 | 10 |
Royalty* | 15 | 15 |
Natural resource payment | 15 | 15 |
Service fees | 5 | 15 |
Director fees (other than full time service) | 15 | 15 |
Insurance premium | 0 | 5 |
Money transfer commission paid to money transfer agent | 10 | N/A |
Fees paid to commercial bank agents and digital payment agents | 10 | N/A |
Payments for goods by government institutions | 2 | N/A |
* If payment relates to use of cinematography film, video tape sound recording, or any other like medium, the applicable rate is 10%.
Double tax treaty (DTT) rates
Recipient | WHT (%) | |||
Dividend | Interest (7) | Royalties | Management / technical fees | |
Domestic rate (1) | 10 | 10 | 15 | 15 |
Treaty: | ||||
Canada | 20/25 (2) | 15 | 20 | 20 |
Denmark | 15 | 12.5 | 20 | 20 |
Finland | 20 | 15 | 20 | 20 |
India | 5/10 (3) | 10 | 10 | 0 |
Italy | 10 | 15 | 15 | 15 (6) |
Norway | 20 | 15 | 20 | 20 |
South Africa | 10/20 (2) | 10 | 10 | 0 |
Sweden | 15/25 (4) | 15 | 20 | 20 |
Zambia | 0 (5) | 0 (5) | 0 (5) | 0 |
Notes
- The domestic WHT rate applies unless the DTT rate is lower, in which case the lower DTT rate applies.
- 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.
- 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.
- 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.
- The domestic rate applies if income is exempt from tax in Zambia.
- The domestic rate applies in the absence of a rate specified in the DTT.
- 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.