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Tanzania: Worked Example of Tax on Rent

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Last Updated: Mar 12, 2007

Tax Example: Rent

Non-resident couple's joint monthly rental income1 US$1,500 US$6,000 US$12,000
Annual Rental Income 18,000 72,000 144,000
Less Costs (30%)2 (2,700) (10,800) (21,600)
= Taxable Income 15,300 61,200 122,400
Income Tax Rates3
Corporate tax rate 30% 4,590 18,360 36,720
= Annual Income Tax Due   US$4,590 US$18,360 US$36,720
Additional Taxes
Withholding tax on after-tax profits4 10% 1,071 4,284 8,568
Annual Income Tax Due US$5,661 US$22,644 US$45,288
Tax Due as % of Gross Income 31.45% 31.45% 31.45%
Thanks to:
Grant Thornton Tanzania

DISCLAIMER: The information contained above is marketing material only and is not written tax advice directed at the particular facts and circumstances of any person and should not be relied upon. We encourage you to discuss your particular situation with us or an independent tax advisor. This information was last updated on March 12, 2007.


Notes

Grant Thornton Tanzania is a member firm of Grant Thornton International. Grant Thornton International is not a worldwide partnership. Member firms of the international organization are independently owned and operated.

1 The property is jointly owned by husband and wife.

2 Estimated values.

3 Non-resident foreigners' income are taxed at the corporate tax rates.

4 After-tax profits of non-resident foreigners are subject to 10% withholding tax.

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