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 TZA 100 million per annum, specific presumptive income tax rates apply, as set out in the table under Business income in the Income determination section.
Where the income from investment represents a ‘final withholding payment’, the tax rate applicable is the relevant 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%.
|Taxable income (TZS)||Tax on column 1 (TZS)||Tax on excess (%)|
|Over (column 1)||Not over|