You are on page 1of 3

Withholding tax rates in the Income Tax Act, 2004

Section

Type of payment Employment Employment Dividend Dividend Interest Interest Interest Natural resource payment Natural resource payment Rent for land or building Rent for land or building Rent Royalty Royalty Service fee Mining technical service fee Insurance premium

From 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 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 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 person (except individuals not conducting business) Resident person (except individuals not conducting business)

To 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 Non resident person

Rate Regulations 15% 5% 10% 10% 10% 10% 15% 15% 10% 10% 15% 15% 15% 15% 5% 5%

81 81 82 82 82 82 82 82 82 82 82 82 82 82 83 83 83

Final / nonfinal Non-final1 Final Final 2 Final 2 Final Non-final Final 3 Non-final Final 3 Final 3 4 Non-final Final 3 Non-final Final 3 Final Final Final

Note: "resident person" includes a permanent establishment of a non-resident person situated in Tanzania

If an individuals 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 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 Where these payments are made by individuals not conducting a business, the recipient is liable to pay the tax by way of assessment 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

You might also like