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Tanzania: Living There - Tax Issues

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Last Updated: Mar 12, 2007

Living There

Resident individuals are taxed on their worldwide source of income. An individual is considered as a resident of Tanzania if he has established a permanent home in Tanzania and was present in Tanzania for the particular tax year; in case where no permanent home was established, he was present in Tanzania in that taxable year, or was present in Tanzania in that year and in each year before that year, with an average stay of 122 days for each of the preceding 2 years; and finally, if he is an employee or an official of the government of the United Republic posted abroad.

Income Tax

Rental income earned by residents from leasing out real properties is taxed at a final withholding tax at a rate of 10%.

INDIVIDUAL INCOME TAX
TAXABLE INCOME, TZS (US$) MARGINAL TAX RATE
Up to 500,000 (US$384) nil
Over 500,000 (US$384) 10% on all income over US$384
Source: Global Property Guide

Capital Gains Tax

Capital gains tax is levied on disposal of real properties. For residents, the CGT rate is 10% and is levied on the net gains realized. Expenses incurred in the selling of property are deducted from the gross selling price.

However, if the property was used as the resident’s own private residence for three years prior to the sale, capital gains are exempt up to TZS15,000,000 (US$11,511).

 

Tanzania - more data and information

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