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Tanzania
Corporate - Withholding taxes
Last reviewed - 26 September 2024WHT 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 |
| Construction equipment or machinery | 10 | 10 |
| Other assets | 0 | 10 |
| Royalty* | 15 | 15 |
| Natural resource payment | 15 | 15 |
| Service fees | 5 | 15 |
| Payments to digital content creator | 5 | N/A |
| Payments to owner of digital asset for exchange/transfer of digital assets** | 3 | N/A |
| 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 |
| Payments for precious metals, metallic minerals, industrial minerals other than salt, gemstones, and other precious stones to the holder of a primary mining licence or artisanal miner | 2 | N/A |
| Payments for verified carbon emission reduction | 10 | N/A |
* 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
| Recipient | WHT (%) | |||
| Dividend | Interest (8) | 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 | 15 (7) |
| 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.
- The DTA does not have a management, technical, or service fee article. WHT is still usually deducted.
- 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.
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