Tanzania

Income tax is payable by individuals resident in Tanzania (other than short-term residents) on their worldwide income. ‘Short-term residents’ and non-residents are taxable on income from a Tanzanian source.

Personal services have a Tanzanian source if (i) performed in Tanzania or (ii) performed outside Tanzania but where the payer is the government of Tanzania.

Personal income tax rates

The top marginal rate of tax for resident individuals is 30% (see tax table below).

Non-resident individuals are subject to tax at a flat rate of 15% on employment income, which is final tax in Tanzania.

For individuals with business turnover not exceeding 200 million Tanzanian shillings (TZS) per annum, specific presumptive income tax rates apply, as set out in the table under Business income in the Income determination section.

Taxpayers with a business turnover of less than TZS 200 million are not required to prepare financial statements. However, they may elect to prepare audited financial statements and be assessed under the self-assessment.

Newly registered businesses are eligible for a 12-month tax holiday subject to approval from the TRA following an application of the exemption after obtaining anTax Identification Number (TIN).

Where the income from investment represents a ‘final withholding payment’, the tax rate applicable is the relevant withholding tax (WHT) rate. The disposal of an investment with a Tanzanian source is subject to tax at a rate of 10% if disposed by a resident and 30% if disposed by a non-resident. The disposal by a resident of an investment with an overseas source is subject to tax at a rate of 30%.

Resident rates