TANZANIA REVENUE AUTHORITY

TAXES AND DUTIES

AT A GLANCE
2016/2017

August, 2016
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A. DIRECT TAXES
No.

TAX SOURCE

1.0

Corporation Tax:

(a)
(b)

(c )

(d)

(e)

RATES
RESIDENT

NON
RESIDENT

Tax rate on total income

of the corporation

30%

30%

Corporations with
perpetual
unrelieved losses for 3
consecutive years (excluding
corporation conducting
agricultural business, provision
of health or education)

0.3% of
annual
turnover

NA

Newly listed corporation to

the Dar es Salaam Stock
Exchange, with at least 30%
shares issued to the public for
three consecutive years from
the date of listing.

Total income of a Domestic

Permanent Establishment

Repatriated income of a branch

owned by a non- resident person
(Branch remittance)

25%

NA

NA

25%

30%

10%

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2.0

Withholding tax on:

(a)

(i) Dividends from the Dar es

salaam Stock Exchange
listed corporations

RESIDENT NON RESIDENT

5%

5%

5%

NA

Dividends from other

corporations

10%

10%

(c)

Commission on money transfer

through mobile phones

10%

N/A

(d)

Interest

10%

10%

(e)

Royalties

15%

15%

Management and Technical

services fees (mining, oil and
gas)

5%

15%

(f)

Transport (Non-resident
operator/ charterer without
permanent establishment).

NA

5%

(g)

(ii) Dividend from resident

corporation to another
resident corporation where
the corporation receiving
the dividend holds 25% or
more of the shares in the
corporation
(b)

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Rental Income:
Land and building

10%

20%

Aircraft lease

10%

15%

Others assets

0%

15%

Transport across borders.

N/A

5%

Insurance Premium

0%

5%

(k)

Natural Resources Payment

15%

15%

(l)

Service Fees (Taxpayers

with or without TIN)

5%

15%

(m)

Directors Fees (Non-full time

Directors)

15%

15%

(n)

Payments for goods

supplied to Government
and its institutions by any
person

2% of
gross
payment

N/A

(o)

Other withholding payments

15%

15%

(h)

(i)

(j)

3.0

Capital Gains on Disposal of Investment Asset

Persons asset (Entity and
Individual)

10%

20%

Exemption on disposal of Investment assets:

a)
b)
c)
4.0

Private residence - Gains of Tshs. 15 million or

less
Agricultural land - Market value of less than 10
million
Shares - DSE shares held by a person with share
holding less than 25%

Single Installment Tax on

Transport across borders.
(Non - resident transport
operator/charter without
permanent establishment)

N/A

5%

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Note:
(i) P
 ayment of withholding taxes should be within 7
days after the month of deduction
(ii) The submission of statement is within 30 days
after each 6- month period.
5.0

Resident Individual Income Tax (Tanzania

Mainland)
Monthly Income

Tax Rate

Where total income does

not exceed Tshs 170,000/=

NIL

(ii)

Where total income exceeds

Tshs 170,000/= but does not
exceed Tshs 360,000/=

9% of the amount in
excess of Tshs 170,000/

(iii)

Where total income exceeds

Tshs. 360,000/= but does not
exceed Tshs 540,000/=

Tshs 17,100/= plus 20%

of the amount in excess
of Tshs 360,000/=

Where total income exceeds

Tshs 540,000/= but does not
exceed Tshs 720,000/=

Tshs 53,100/= plus 25%

of the amount in excess
of Tshs 540,000/=

Where total income

exceeds Tshs 720,000/=

Tshs 98,100/= plus 30%

of the amount in excess
of Tshs 720,000/=

(i)

(iv)

(v)

Note
Threshold per annum: Annual Income of Tshs 2,040,000 /=
is not taxable

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5.1 Resident Individual Income Tax (Tanzania

Zanzibar)
Monthly Income

Tax Rate

Where total income does not

exceed Tshs 150,000/=

NIL

Where total income exceeds

13% of the amount in

excess of Tshs 150,000/=

Tshs 150,000/= but does not

exceed 360,000/

Where total income exceeds

Tshs 27,300/= plus 20%

of the amount in excess
of Tshs 360,000/=

Tshs 360,000/= but does not

exceed Tshs 540,000/=
Where total income exceeds Tshs
540,000/= but does not exceed
Tshs 720,000/=
Where total income exceeds
Tshs 720,000/=

Tshs 63,300/= plus 25%

of the amount in excess
of Tshs 540,000/=
Tshs 108,300/=
plus 30% of the
amount in excess of
Tshs720,000/=

Note
Threshold per annum: Annual Income Tshs 1,800,000 /=
is not taxable

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Remarks
1. An employee who makes donation as per section 12 of
the Education Fund Act, the donation is exempted from
tax. However the exemption is upon approval by the
Commissioner.
2. i. Income of a non-resident employee of a resident
employer is subject to withholding tax of 15%.
ii. The total income of non-resident individual is
chargeable at the rate of 20%
3. The monthly income include basic salary, overtime,
bonus, commission, allowances e.g. house allowance or
transport allowance and benefits in kind received in lieu
of employment but after deducting the contribution to the
approved retirement Fund.

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5.2 Benefits 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)

Motor vehicle: Benefits are based on engine size and

vehicle age of the following annual values.
Engine size

Engine size
up to 5 years
old Tshs

Greater
than 5
years old
Tshs

(i)

Not exceeding 1000cc

250,000/=

125,000/=

(ii)

Above 1000cc
not exceeding 2000cc

500,000/=

250,000/=

(iii)

Above 2000cc
not exceeding 3000cc

1,000,000/=

500,000/=

(iv)

Above 3000cc

1,500,000/=

750,000/=

Note
s The Motor vehicle benefit is not applicable where the
employer does not claim deduction in respect of the
ownership, maintenance or operation of the vehicle
s The market value will apply in determining other benefits in
kind

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6.0

Skills Development Levy (SDL)

Rate is 4.5% of the monthly gross emolument for
Tanzania Mainland and Zanzibar.
Exempted employers from SDL
a) A government department or a public institution which
is wholly financed by the Government
b) Diplomatic Missions
c) The United Nations and its organizations
d) International and other foreign institutions dealing with
aid or technical assistance
e) R
 eligious institutions whose Employees are solely
employed to administer places of worship, to give
religious instructions or generally to minister religion
f) Charitable organizations
g) Local Government Authority
h) Farm employers whose employees are directly and
solely engaged in farming

Note
The gross emoluments include wages, salary,
leave pay, sick pay, payment in lieu of leave, fees
commission, gratuity, bonuses, any subsistence,
travelling or entertainment allowances

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7.0 The Individual Presumptive Tax Assessment

Annual Turnover

Where turnover does not

exceed Tshs 4,000,000/=

Compliance with section 80 of

Income Tax Act, 2004- Record
keeping
Not complied

Complied

NIL

NIL

Where turnover is
between Tshs. 4,000,000/=
and Tshs 7,500,000/=

Tshs 150,000/=

3% of the turnover
in excess of Tshs
4,000,000/=

Where turnover is
between Tshs 7,500,000/=
and Tshs 11,500,0000/=

Tshs 318,000/=

Tshs 135,000/=
plus 3.8% of the
turnover in excess
of Tshs 7,500,000/=

Where turnover is between

Tshs 11,500,000/= and
Tshs 16,000,000/=

Tshs 546,000/=

Tshs 285,000/=
plus 4.5% of
the turnover in
excess of Tshs
11,500,000/=

Tshs 862,000/=

Tshs 487,000/=
plus 5.3 % of
the turnover in
excess of Tshs
16,000,000/=

Where turnover is between

Tshs 16,000,000/= and
Tshs 20,000,000/=
Note:

1. Where turnover exceeds Tshs 20,000,000/= p.a the

taxpayer is obliged to prepare audited financial statements
in respect of his/her business.
2. Any taxpayer whose turnover exceed Tshs
14,000,000 p.a is obliged to acquire and use the
Electronic Fiscal Device (EFD).

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7.1
(a)

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
Note: P
 ayments for other accounting dates are made
at the end of every quarter, depending on ones
accounting period.

(b)

Final returns and payment of tax:

Within six months from the end of the accounting period.

(c)

Late payment of tax: Shall be charged interest at the

prevailing statutory rate at the time of imposition

(d)

Penalties for misuse of EFDs

i.

Any person who fails to acquire or use electronic fiscal

device, fails to issue fiscal receipt or fiscal invoice, issue
fiscal receipt/invoice that is false or incorrect, use of
EFD device that mislead the system or commissioner,
tempers with or causes EFD to work improperly or in
a manner that does not give correct or true picture
commits an offence and shall be liable, on conviction to
a fine of not less than 200 currency points and not more
than 300 currency points or to imprisonment for a term
not exceeding 3 years or both.

ii.

A person involved in above offences upon conviction

shall be liable to fine of twice the amount of tax evaded
or imprisonment for term not exceeding 3 years.

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iii.

8.0
Class
1*

2*

3*

5**

12

Any person who fails to demand or report a denial of

issuance of fiscal receipt or fiscal invoice upon payment
for goods or services commits and offence and shall be
liable upon conviction to a fine not less than 2 currency
points and not more than 100 currency points.

Depreciable assets, allowances and the

applicable rates
Depreciable Assets

Rates

Computers and data handling equipment together

with peripheral devices, automobiles, buses and
minibuses with a sitting capacity of less than 30
passengers, goods vehicles with a capacity
less than 7 tones, construction and earth
moving equipment.
Buses
with a
seating capacity of 30
or more passengers, heavy general purpose
or
specialized trucks, trailers, and trailer mounted
containers, rail road
cars,
locomotives, and
equipment, vessels, barges, tags and similar, water
transportation equipment, air craft, other self
propelling vehicles, plant
and
machinery
used in agriculture or manufacturing
Office furniture, fixtures and equipment, any asset
not included in another class.

Buildings, structures ,dams, water

reservoirs, fences, and similar works of a
permanent nature used in agriculture,
livestock farming or fish farming

37.5%

25%

12.5%

20%

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6**

7**
8**

Buildings, structures, and

similar works of permanent
nature other than those
mentioned in class 5.
Intangible assets
other than those in class 4.
Part and machinery (Including
windmills electric generators
and distribution equipment)
used in agriculture and
Electronic Fiscal Devices
(EFD) purchased by non
VAT registered traders,
equipment used for
prospecting and exploration of
minerals or petroleum.

5%

Over useful life

of the asset
100%

Note 1 * Pools of depreciable assets calculated basing on

Diminishing Value Balance Method.
Note 2 ** Pools of depreciable assets calculated basing
on Straight Line Method.
Class 4 has been repealed by the Finance Act 2016.
Depreciation allowances for mineral or petroleum
Operations
Year of Income
Depreciation Allowance
First Year
20% of expenditure
Second Year
20% of expenditure
Third Year
20% of expenditure
Fourth Year
20% of expenditure
Fifth Year
20% of expenditure
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B: INDIRECT TAXES
9.0

Value Added Tax (VAT)

VAT registration threshold:
 Taxable turnover exceeding Tshs 100 million
per annum.

A registered professional is required to register
regardless of taxable turnover
VAT Rates
Description of goods/ supplies and
services

VAT
rates

Supply of taxable goods and services

in Mainland Tanzania

18%

Importation of taxable goods and services

into Mainland Tanzania

18%

Export of goods and certain services from

the United Republic of Tanzania

0%

Exemptions
Exempt supplies and imports are provided in the
Schedule to the Act.
VAT Returns and Payments:
Local Supplies: The 20th day of the month
following month of business.
Imports: At the time import duty is due and
payable in accordance with East African
Community Customs Management Act, 2004.

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VAT Refund:
The Commissioner will make decision whether to
refund or not in 90 days from date of application
The Commissioner will effect a refund within 14
days from the date of making decision
Regular Repayment: Business in a constant
refund position may apply for authorization to
lodge claims on a monthly basis.
Note: Every VAT registered person is required to
use the Electronic Fiscal Device (EFD)

10.

Stamp Duty
Items

Rate

(i) Conveyance

1% of consideration

(ii) Conveyance for

agricultural land

Tshs 500/=

( iii) Legal and commercial instruments are charged

at a specific rates as specified in the law.
Exemptions
(i) Receipts on sales of goods or services for
business.
(ii) Transfer of ownership of assets to the special
purpose vehicles (SPV) for purpose of issuing
asset-backed securities.
Note: Due dates is within 30 days from the date
an instrument is executed.
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11.

Import Duty
Items

Duty Rates

(i)   Raw materials,

Pharmaceuticals and capital
goods, Hand hoes, agricultural
implements.

0%

(ii) Semi-finished goods

10%

(iii) F
inal consumer goods or
finished commercial goods

25%

Some sensitive items are charged at a higher rate

than 25% with the intention of protecting local
industries. (E.g. Yoghurt 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).
12.

Excise Duty

A: (i) Specific Rates on: Wine, spirits, beer, soft drinks,

fruit juices, Recorded DVD, VCD, CD and audio
tapes, cigarettes, tobacco, and petroleum products
and Natural gas
(ii) Ad-valorem rates are: 10%, 15%, 17%, 20%,
25%, and 50%. (20% is imposed on imported
furniture and on imported seats other than those of
heading 94.02.)

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B: Excise Duty on Motor vehicles based

on engine capacity

Applicable
Rate

Description of vehicle
(i) Of cylinder capacity less than 1000 cc

0%

(ii) Of cylinder capacity exceeding 1000 cc

but not exceeding 2000 cc

5%

(iii) Of cylinder capacity exceeding 2000cc

10%

C: Additional Excise Duty on Imported used vehicles

(i) I
mported vehicles aged from eight (8)
years but not more than 10 years, counted
from the year of its manufacture.

15%

(ii) Imported vehicles aged ten (10) years

or more, counted from the year of its
manufacture.

30%

Note for (i &ii ) Excluding passenger

vehicles under HS Code 8702.10.22,
8702.10.29, 8702.10.99, 8702.90.29 and
8702.90.99

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D: Imports of used vehicles

spare parts:
Imported used spare parts for
motor vehicles and motor cycles.

25%

E: Excise Duty on other

Goods/Services
Fees or charges payable to Financial
Institution or Telecommunication
companies for money transfer
services

10%

Submission of Monthly Returns

Any manufacturer of excisable scheduled article
or provider of excisable service shall submit a
monthly return not later than the last working day of
the month following the month to which the return
relates.
13.

Fuel levy:
Charged per litre of petrol or diesel

14.

15.

18

Tshs 313 /=

Petroleum Levy :
Chargeable based on per litre
of Kerosene, Gas Oil and Motor
Spirit

Tshs 50/=

Tourism Development Levy:

Chargeable based on a bed
night charge.

USD 1.5
per night

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Railway Development Levy:

Charged based on Customs
Value on goods entered for
home consumption in Mainland
Tanzania.

1.5% of CIF

Note: Railway Development Levy shall not be

charged to exemptions provided under the East
African Community Customs Act, 2004 with
exception to exemptions provided for under the Fifth
Schedule EACCMA, 2004; Pharmaceutical goods
and equipment of chapter 30 and 90 of EAC Common
External Tariff and fertilizer as defined under EAC
External Tariff
17

Airport Service charges

Local Travel (Resident)
International Travel

18

USD 40

Port Charges
Resident traveler
Non - Resident

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Tshs. 10,000/=

Motor Vehicle

Sh.500/=
USD 5
Fee

Registration
Motor vehicle registration fee

Tshs 250,000/=

Motor cycle Registration fee

Tshs 95,000/=

Personalized Registration
Number

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Tshs 10,000,000/=
for 3 years

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20

Motor Vehicle Annual fees

Motor Vehicle Engine size

Fees

Up to 500 cc

Tshs. 50,000/=

501 1,500 cc

Tshs. 150,000/=

1,500 2,500 cc

Tshs. 200,000/=

Above 2,500 cc

Tshs. 250,000/=

Tractors used for agricultural

purposes, motor cycles and
motorized tricycles (Bajaj)

Exempted

Note
MV licence fee is paid through mobile phones, Max
Malipo and Banks
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20

Motor Vehicle Transfer Tax

Motor Vehicle transfer fees

50,000/=

Motor cycle transfer fees

27,000/=

Fees for a new registration

card

10,000/=

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Motor Vehicle Driving License

License fees renewable
every 3 years

Tshs 40,000/=

Driving test fees

Tshs. 3,000/=

Provisional license fees

renewable every 3 months

Tshs. 10,000/=

Export Tax
i ) Raw hides and skins are 80% FOB or USD
charged based on FOB 0.52 / Kg
Value or per kg whichever is
greater

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ii) R
 aw cashew nuts is levied
based on FOB Value or per
metric tones whichever is
greater

10% FOB or USD

160/MT

iii) Wet blue leather

10% of FOB Value

Prohibited goods
Narcotic drugs, tear gas substances, seditious,
obscene materials or literature. Used tyres for light
commercial vehicles and passengers car and other
goods as provided in the law.

25

Restricted goods: Live animals, plants, fire arms,

ammunitions, ivory powder waste etc. These
require permit from relevant authorities.
Customs Processing Fee:

26

Is fee charged for processing

customs document for goods
entered for home consumption.

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0.6% of FOB
Value

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27

Imports from East African Community (EAC)

Member States and SADC:
Goods produced within member states are chargeable
at the rate of zero provided that the criteria of Rules
of Origin are adhered to. With exception of goods
manufactured under Export Processing Zones and
Industries with concession. EAC Member states are
Burundi, Kenya, Rwanda, Uganda, and Tanzania.
Note
EAC is implementing Single Custom Territory which
centres around the removal of trade restrictions
including minimization of internal border controls on
goods moving within the Partner States.

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Non Tax Revenue

i). Property tax. TRA has been mandated to
determine and collect property tax. Effective from
1st July 2016
ii). Wharfage fees. TRA has been mandated to
collect. Effective from 1st August 2016.

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