Withholding tax rates in the Income Tax Act, 2004

Section / Type of payment / From / To / Rate / Final / non-final
81 / Employment / Resident employer / Resident employee / Regulations / Non-final[1]
81 / Employment / Resident employer / Non resident employee / 15% / Final
82 / Dividend / Resident corporation listed on Dar es Salaam Stock Exchange / All / 5% / Final [2]
82 / Dividend / Resident corporation not listed on Dar es Salaam Stock Exchange / All / 10% / Final 2
82 / Interest / Financial institution / Resident individuals not conducting business / 10% / Final
82 / Interest / Resident person (except individuals not conducting business) / Other resident persons except resident financial institutions / 10% / Non-final
82 / Interest / Resident person (except individuals not conducting business) / Non resident persons / 10% / Final [3]
82 / Natural resource payment / Resident person (except individuals not conducting business) / Resident persons / 15% / Non-final
82 / Natural resource payment / Resident person (except individuals not conducting business) / Non resident persons / 15% / Final 3
82 / Rent for land or building / Resident person (except individuals not conducting business) / Resident individuals not conducting business / 10% / Final 3 [4]
82 / Rent for land or building / Resident person (except individuals not conducting business) / Resident persons in business / 10% / Non-final
82 / Rent / Resident person (except individuals not conducting business) / Non resident persons / 15% / Final 3
82 / Royalty / Resident person (except individuals not conducting business) / Resident persons / 15% / Non-final
82 / Royalty / Resident person (except individuals not conducting business) / Non resident persons / 15% / Final 3
83 / Service fee / Resident person (except individuals not conducting business) / Non resident person / 15% / Final
83 / Mining technical service fee / Resident person (except individuals not conducting business) / Resident person / 5% / Final
83 / Insurance premium / Resident person (except individuals not conducting business) / Non resident person / 5% / Final

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

[1] 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