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Tanzania: Worked Example of Tax on Rent

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Tax Pages

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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