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% | |
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
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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