INCOME TAX RATES

No. Tax source Rate Rate (Non-

(Resident) resident)
1 Corporate Tax (Entity) 30% 30%
2 Total income of a Domestic permanent establishment N/A 30%
3 Repatriated income of branch N/A 10%
4 Withholding tax on:-
(i) Dividends to company controlling 25% of shares or
0% 10%
more
(ii) Dividends from DSE listed Companies 5% 5%
(iii) Dividends from other Companies 10% 10%
(iv) Other withholding payments 15% 15%
(v) Interest 10% 10%
(vi) Royalties 15% 15%
(vii) Technical services (Mining) 5% 15%
(viii) Transport (Non-resident operator/Charterer without
N/A 5%
permanent establishment)
(ix) Rental income (Residential houses) if it exceeds shs.
500,000/= per annum
10% 15%
Other (any amount) 10% 15%
(x) Insurance premium 0% 5%
(xi) Natural resource payment 15% 15%
(xii) Service fees N/A 15%
5 Disposal of Investment Assets:
(i) Individual 10% 20%
(ii) Company (entity) 30% 30%
Exemption:
™ Private residence gains of sh. 15,000,000/= or
less
™ Agricultural land – market value of less than
sh.10,000,000/=
™ Shares:
- DSE Shares held by residents or non
residents which are less than 25% of
total shares
- Shares held by a resident company with
shareholding of 25% or more.
6 Single installment tax
(i) sale of land and property 10% 20%
(ii) Transport across borders N/A 5%
• Due date of remittance of withholding tax – Within 7 days after the end of the
month of deduction
• File of statement with the Commissioner – 30 days after each 6 month period.
7. Individual Income Tax (w.e.f. 1st July 2005)

Monthly Income Tax rate

Where income does not exceed sh. NIL
80,000/=
Where total income exceeds sh.80,000/= 18.5% of the amount in excess of sh.
but does not exceed sh.180,000/= 80,000/=
Where total income exceeds sh.180,000/= 18,500/= plus 20% of the amount in excess
but does not exceed sh. 360,000/= of 180,000/=
Where total income exceeds sh. 360,000/= 54,500/= plus 25% of the amount in excess
but does not exceed sh. 540,000/= of sh.360,000/=
Where total income exceeds sh. 540,000/= 99,500/= plus 30% of the amount in excess
of 540,000/=
Threshold per annum: Income -
Sh.960,000/-
Note:For non resident employees' of the resident employer (e.g.temporary employees
from outside Tanzania) the income is subject to withholding tax at the rate of 15%.
However the total income of a non resident individual is charged at the rate of 20%

9. Presumptive taxes on resident individual’s business whose annual turnover is not

more than sh. 20,000,000/=

Turnover Tax payable where Tax payable where

incomplete records are complete records are
kept kept.
Sh.1/= to 3,000,000/= Sh.35,000/= 1,1% of annual turnover
3,000,001/= to 7,000,000/= Sh. 95,000/= Sh. 35,000/= plus 1.3% of
the turnover in excess of
sh. 3,000,000/=
7,000,001/= to Sh. 291,000/= Sh. 85,000 plus 2.5% of the
14,000,000/= turnover in excess of
sh.7,000,000/=
14,000,001/= to Sh. 520,000/= Sh. 260,000/= plus 3.3% of
20,000,000/= the turnover in excess of
sh. 14,000,000/=