TAXES AND DUTIES AT A GLANCE
Taxpayer Services and Education Department
August 2008 Eighth Edition
(A) DIRECT TAXES RATES
TAX SOURCE RESIDENT NON-
1. Corporate Tax: 30% 30%
Companies with perpetual tax loss for 3 consecutive years as a result of 0.3% of annual turnover 0.3% of annual
tax of tax incentives on investment. turnover
For newly listed company to the Dar es Salaam stock exchange, with at 25% 25%
least 35% of its shares issued to the public for three consecutive years
from date of listing.
Total income of a domestic N/A 30%
Repatriated income of branch - 10%
2. Withholding tax on:
(i) Dividends to company controlling 0% 10%
25% of shares or more.
(ii) Dividends from DSE listed company 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 fees (Mining) 5% 15%
(viii) Transport (Non resident operator/chatterer without permanent N/A 5%
(ix) Rental Income (residential house if exceeds sh. 500,000/- p.a) 10% 15%
Other (any amount) 10% 15%
(x ) Insurance Premium 0% 5%
(xi) Natural Resource Payment 15% 15%
(xii) Service fees N/A 15%
(xiii) Services to Gvt by persons other than holders of TIN registration 2% of gross 2% of gross
3. Disposal of Investment Assets:
Individuals asset 10% 20%
Company % 30% % 30%
Exemption on disposal of investments:
a. Private residence gains of sh. 15 million or less.
b. Agricultural land – Market value of less than 10 million
1. DSE shares held by non resident if shareholding of 25% or less
2. Shares held by a resident company running another company with share holding
of 25% or more.
4. Single instalment tax on:-
1. Sale of land and property (lump sum)
2. Transport across borders 5%
Due date remittance of withholding tax: (i) Payment – within 7days
after month of Deduction.
(ii) Return – 30 days after each
5. Individual Income Tax
Monthly Income Tax Rate
Where total income does not exceed sh. 100,000/- NIL
Where total income exceeds sh. 100,000/= but does not exceed sh. 360,000/- 15% of the amount in excess of
Where total income exceeds sh. 360,000/- but does not exceed sh. 540,000./- 39,000/- plus 20% of the amount in
excess of sh. 360,000/-
Where total income exceeds sh. 540,000/- but does not exceed sh. 720,000/- Sh 75,000/- plus 25% of the amount in
excess of sh. 540,000/-
Where total income exceeds sh. 720,000/- Sh120,000/- plus 30% of the amount in
excess of sh. 720,000/-
Threshold per annum: Income Shs. 1,200,000/-
1.For non-resident employees of a resident employer 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%.
2. An employee who makes donation as per section 12 of Education Fund Act, such donation is exempted from
tax. But such exemption is upon approval by the Commissioner.
6. Benefit in kind:
a. Housing: Lower of the:- Market value rental of the premises and the higher of the following:-
i. 15% of the employees total annual income and
ii. The expenditure claimed as deduction by the employer in respect of the premises
b. Car: Motor vehicles taxable benefits are based on engine size and vehicle age on the following annual values:-
Engine size Engine size Up to 5 Greater than 5
years old Tsh. years old
Not exceeding 1000cc 250,000/- 125,000/-
1000 – 2000 cc 500,000/- 250,000/-
2000 – 3000 cc 1,000,000/- 500,000/-
Above 3000 cc 1,500,000/- 750,000/-
Note: Not chargeable where the employer does not claim deduction in respect
of the ownership, maintenance, or operation of the vehicle.
7. The Individual Presumptive Tax Assessment
Turnover Tax Payable where Tax payable
Incomplete records where records
are kept are kept.
(i) Where turnover does not exceed sh. 3,000,000/- Sh. 35,000/- 1.1% of the
(ii) Where turnover is between 3,000,000/- and 7,000,000/- Sh. 95,000/- Sh. 33,000/-
plus 1.3% of the
(iii) Where turnover is between 7,000,000/- and Sh. 14,000,000/- Sh. 291,000/- Shs. 85,000/-
pus 2.5% of the
excess of sh.
(iv) Where turnover is between shs. 14,000,000/- and shs 20,000,000/- Sh. 520,000/- Sh. 260,000/-
plus 3.3% of the
excess of sh.
Note: Where turnover exceeds Tshs 20,000,000/- the taxpayer is obliged to prepare audited financial statements in respect
of his/her business.
8. Submission of returns and payment of tax for accounts based on calendar year*
i. On or before 31st March
ii. On or before 30th June
iii. On or before 30th September
iv. On or before 31st December
* Payments for the other accounting dates are made at the end of every
quarter, depending on one’s accounting period.
b. Final returns and payment of tax
Within six months from the end of the accounting period.
c. Due dates for payment of tax under P.A. Y. E. Scheme.
Within 7 days of the month following the month to which payment relates.
9 Skills and Development Levy:
(i) Tanzania Mainland:
Rate is 6% of the monthly gross emoluments.
(ii) Tanzania Zanzibar
Rate is 5% of the monthly gross emoluments.
Note: The gross emoluments include wages, salary, leave pay, sick pay, payment in lieu of leave, fees, commission,
gratuity, bonuses any subsistence, travelling entertainment or any other allowance in respect of employment or services
rendered, except allowances which are solely for performance of the employer’s job.
10. Depreciable assets, allowances and the applicable rates
Class Depreciable assets Rates
1* Computers and data handling equipment together with peripheral devices, automobiles, 37.5%
buses and minibuses with a sitting capacity of less than 30 passengers, good vehicles with a
seating capacity of less than 7 tones, Construction and earth moving equipment.
2* Buses with a seating capacity of 30 or more passengers, heavy general purpose or 25%
specialized trucks, trailers and trailer mounted containers, railroad cars, locomotives, and
equipment, vessels, barges, tags, and similar water transportation equipment, aircraft other
self propelling vehicles, plant and machinery (including wind mills, electric generators, and
distribution equipment) used in manufacturing or mining operations, specialized public utility
plant and equipment, and machinery or other irrigation installations and equipment.
3* Office furniture, fixtures and equipment, any asset not included in another class. 12.5%
4** Natural resource exploration and production rights and assets in respect of natural resource 20%
prospecting, exploration and development expenditure.
5** Buildings, structures, dams, water reservoirs, fences, and similar works of a permanent 20%
nature used in agriculture, livestock farming or fishing farming.
6** Buildings, structures, and similar works of permanent nature other than those mentioned in 5%
7** Intangible assets other than those in class 4. Over
8** Plant and machinery (including windmills, electric generators and distribution equipment) 100%
used in agriculture
Note 1 * Pools of depreciable assets calculated basing on diminishing value method.
Note 2 **Pools of assets calculated basing on straight line method.
(B) INDIRECT TAXES:
11. Value Added Tax (VAT)
VAT registration threshold:
Taxable turnover exceeding sh. 40 million per annum, or Taxable turnover exceeding 10 million attained during
three consecutive months.
Description of goods/supplies and services
Supply of taxable goods and services in Mainland Tanzania 20%
Importation of taxable goods and services into Mainland Tanzania 20%
Export of goods and certain services from the United Rep. of Tanzania 0%
Supply of taxable goods and services to relieved persons – Not subjected to VAT
The Government and its Institutions are not relieved from VAT
Goods and services under a technical aid or donor funded projects, voluntary and charitable organization under
existing laws, and special agreements are relieved from VAT
VAT on capital goods to any person is relieved
VAT Returns and payments
Local Supplies : Last working day of the month following month of business
Imports: At the time customs duty is due and payable in accordance with the customs laws.
i. VAT refund on genuine claim: Within 30 days after submission of an authorized auditors Certificate of genuine
at the end of the last six months period.
ii. Regular Repayment: Business in a constant refund position may apply for Authorization to lodge claims on a
12. Stamp duty
1% of consideration
Conveyance for agricultural land Tshs 500/=
ii. Receipts on sales of goods or services for business Exempted
iii. Legal and commercial instruments The duty is chargeable at Specific rates
e.g. Mortgage deed under article 39 rate
is 1% of the amount of instrument with a
maximum of 10,000/= of stamp duty
Due dates is within 30 days.
13. Import duty
Items Duty rates
(i). Raw materials, pharmaceuticals and capital goods Exempt
Hand hoes, agricultural implements
(iii). Finished goods and finished inputs. 10%
(v). Final consumer goods or finished commercial goods. 25%
(vi) Some items are charged at a higher rate than 25% with the intention of protecting local industries,
e.g. Milk and Cream containing sweetening matter.
Cane or beet sugar and chemically pure sucrose in solid form
Sacks and bags of a kind used for the packing of goods.
Worn clothing and other worn articles (mitumba).
14. Excise Duty
A. (i) Specific Rates on: Wine, spirits, beer, soft drinks, cigarettes, tobacco and petroleum products.
(ii) Ad-valorem rates are: 7%, 10%, 20% , 30%and 120% ( 120% imposed on shopping plastic bags.)
B. Imports of non-utility vehicles:
Imported non-utility vehicles of ten years of age or more , counted from the date of manufacture, are
chargeable excise duty at the rate of 20%
C. Excise duty on Motor vehicles
Description of vehicle Applicable rate
i) Of cylinder capacity exceeding 1000 cc but not exceeding 5%
ii) Of cylinder capacity exceeding 2000 cc 10%
15. Fuel levy Sh. 200 per litre of petrol or diesel
16. Airport Service Charges
International Travel USD 30
Local travel (resident) Sh. 5,000/-
17. Port Charges
Resident Traveler Sh. 500/-
Non resident traveler USD 5
18. Motor Vehicle Registration
Motor vehicle registration fees Sh. 120,000.00
Motor cycle registration fees Sh. 35,000.00
Costs for number plates (M/vehicle) Sh. 36,000.00
Costs for a number plate (M/cycle) Sh. 19,000.00
19. Annual fee are as follows:
Engine capacity Annual fee
Up to 500 cc 30,000/= per annum
501-1500 cc 50,000/= per annum
1,500- 2,500 cc 100,000/= per annum
2,500 – 5,000 cc 150,000/= per annum
Above 5,000 cc 150,000/= per annum
Tractors used for agricultural purposes Exempt
20. Motor Vehicle transfer tax
Motor vehicle transfer fees Sh. 50,000.00
Motor cycle transfer fee Sh. 15,000.00
Fee for a new registration card Sh. 10,000.00
21. Motor Vehicle Driving License
License fees Tsh. 10,000/- renewable every 3 years
Driving test fee Tsh. 3,000/-
Provisional license fees Tsh. 5,000/- renewable every 3 months
22. Export Tax:
20% of the value of hides and skins
A levy of 10% chargeable on raw cashew nuts, computed on FOB value
23. Duty Drawback: Import duty is refunded on imported inputs used for producing goods for export and goods sold
to foreign institutions operating in Tanzania.
24. Prohibited goods Narcotic drugs, tear gas substances, seditious, obsceneness materials or literature.
25. Restricted goods* Live animals, plants, firearms, ammunitions, etc * These require permit from relevant authorities
26. Destination Inspection
All imported goods regardless of their value are required to be inspected in the country. A
fee of 1.2% on FOB value is chargeable. Exempted goods are enshrined in the law
27. ASYCUDA++: Under the system Documents’ processing fee is USD 10
28. Temporary importation:
Temporary importations are restricted for 3 months; in case of extension a person have a chance to apply for two
periods of 3 months. Thereafter import duty must be paid and been registered in the case of motor vehicle.
29 Imports from East African Community member states:
Goods within member states are chargeable at the rate of 0% except some of the goods from the Republic of Kenya
imported into Tanzania whose rates will reduce progressively to 0% over a period of 5 years.
30. Property rates: Dar es Salaam region.
A. Segmentation of properties and applicable rates are as follows:
Specifications Applicable rate
(i) Residential properties 0.15% of rateable value as per valuation roll
(ii) Commercial properties 0.2% of rateable value as per valuation roll
Provided that the amount chargeable shall not be less than 10,000/=
B. For properties not included in Valuation roll, rates are provided in the first schedule to the By laws of the
respective Local Authority (Temeke, Ilala and Kinondoni Municipalities)
C. The property rates for other regions will continue to be collected by the respective local Authorities.
Note: This booklet is not a substitute for the respective tax laws.
The tax laws prevail in case of any inadvertent conflict.
‘Together we build our Nation’
For more information please contact:
Taxpayer Education Department,
Tanzania Revenue Authority
Dar- es –Salaam.
Telephone 022-2119343, 2119591-4, Fax: 022-2128593
Tollfree 0713 800 333
TRA does not condone corruption
Both involved parties will be procecuted.