Withholding tax rates in the Income Tax Act, 2004
Section
Type of payment
From
To
Rate
81
81
82
82
82
Employment
Employment
Dividend
Dividend
Interest
Resident employer
Resident employer
Resident corporation listed on Dar es Salaam Stock Exchange
Resident corporation not listed on Dar es Salaam Stock Exchange
Financial institution
Regulations
15%
5%
10%
10%
82
Interest
Resident person (except individuals not conducting business)
10%
Non-final
82
82
82
82
Interest
Natural resource payment
Natural resource payment
Rent for land or building
Resident person (except individuals not conducting business)
Resident person (except individuals not conducting business)
Resident person (except individuals not conducting business)
Resident person (except individuals not conducting business)
10%
15%
15%
10%
Final 3
Non-final
Final 3
Final 3 4
82
Rent for land or building
Resident person (except individuals not conducting business)
10%
Non-final
82
82
82
83
83
Rent
Royalty
Royalty
Service fee
Mining technical service
fee
Insurance premium
Resident person (except individuals not conducting business)
Resident person (except individuals not conducting business)
Resident person (except individuals not conducting business)
Resident person (except individuals not conducting business)
Resident person (except individuals not conducting business)
Resident employee
Non resident employee
All
All
Resident individuals not
conducting business
Other resident persons
except resident financial
institutions
Non resident persons
Resident persons
Non resident persons
Resident individuals not
conducting business
Resident persons in
business
Non resident persons
Resident persons
Non resident persons
Non resident person
Resident person
Final / nonfinal
Non-final1
Final
Final 2
Final 2
Final
15%
15%
15%
15%
5%
Final 3
Non-final
Final 3
Final
Final
Resident person (except individuals not conducting business)
Non resident person
5%
Final
83
Note: "resident person" includes a permanent establishment of a non-resident person situated in Tanzania
If an individual’s income consists only of employment on which tax has been paid by withholding and capital gains on which tax has been paid by installment
and other payments on which final withholding tax has been paid, the tax already paid may be treated as final and there is no need for the individual to file a
return
2
Where the recipient is a resident corporation which holds 25% or more of the shares and voting power in the dividend paying corporation, there is
generally no withholding tax and the payment is exempt
3
Where these payments are made by individuals not conducting a business, the recipient is liable to pay the tax by way of assessment
4
When an individual landlord not conducting a business receives less than Tsh 500,000 per annum from other individuals for rent for their places of
residence, the landlord does not have to file a return or pay tax on this income
1