Individual - Foreign tax relief and tax treaties

Last reviewed - 02 January 2024

Foreign tax relief

A tax credit is available to a resident individual for any income tax paid in another country in respect of income sourced from that other country. Such credit cannot exceed the Tanzanian tax rate applicable to that income. Any unrelieved amount of foreign tax credit can be carried forward. An election can also be made to claim relief as an expense instead of as a credit.

Where the income arises in a country with which a double tax treaty (DTT) is in force, the treaty governs relief.

Tax treaties

DTTs are in force with Canada, Denmark, Finland, India, Italy, Norway, South Africa, Sweden, and Zambia. An East African DTT has been signed but not yet ratified.