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Taxation in Tanzania
 
 
 

In Tanzania the Income Tax Act, 2004 came into effect in July 2004. This act restructured the income tax system in line with modern requirements and repealed the previous Income Tax Act, 1973. Tax is levied on income from employment, income from business and income from investment. Taxable persons include entities and individuals. An entity can be a corporation or a trust, and a corporation is loosely defined to mean any incorporated or unincorporated body of persons or association. For partnerships the individuals within the partnership are taxed on their share of the income. Taxation is on worldwide income for residents (or for individuals, of residents of more than two years) while taxation of non-residents is on Tanzanian source income only. The corporate tax rate is 30%. The individual tax threshold is Tsh 960,000 per annum, and the rates are from 18.5% to a top rate of 30%. Various provisional and final withholding taxes are applied to easy the collection of tax.

The Capital Gains Tax has been abolished. The Specified Building Tax, Training Levy and Estate Duty have also been repealed. Double taxation treaties have been signed with Canada, Denmark, Finland, India, Italy, United Kingdom, Norway, Sweden, and Zambia. Tanzania is also in the process of negotiating treaties with several countries including Belgium, Burundi, Iran, Lebanon, Malaysia, Mauritius, Pakistan, Rwanda.

Both the Income Tax Act, 2004 itself and a comprehensive interactive guide to income tax for Tanzanian residents is provided on the website of the Ministry of Finance of Tanzania. Further information is also available from the Tanzania Revenue Authority (www.tra.go.tz).

 

 
 

 



 


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