Tanzania - Taxation

Follow City-Data.com founder on our Forum or


The Income Tax Act of 1973 lays out the basic regime under which corporations and individuals are taxed.

The corporate income tax rate in 2002 was 30% (down from 35%) of taxable profits. Withholding taxes include 15% for dividends, 15% for interest; 20% on management and professional fees; 20% on royalties, 20% on rents, 10% on aircraft leases; 3% or 20% on technical services and management fees in the mining sector, and 20% on remittances of profits by resident branches of foreign companies. Capital gains tax is levied at rates of 0-30%, but only on gains derived from the sale of premises.

Income taxes are levied on wages and salaries, profits, and rental income; rates vary from 7.5-30%. There is a Housing Levy of 4% of payroll and a Vocational Education Training Levy of 2% of gross payroll. There is a value-added tax (VAT) introduced in July 1998 with a standard rate of 17.5%, but subsequently raised to 20%. Exemptions from VAT include computers, tour operations, hospital equipment, and investments in educational equipment. Other taxes include a stamp duty on sales of 1.2%, a transport withholding tax of 2%, local government development levies, an entertainment tax (for non-VAT-registered taxpayers) and airport and seaport departure charges.

Also read article about Tanzania from Wikipedia

User Contributions:

1
justine
Report this comment as inappropriate
Jul 21, 2011 @ 6:06 am
Please, i need to know if whether there is taxation of management fees in Tanzania.

Comment about this article, ask questions, or add new information about this topic:

CAPTCHA