Tanzania: Taxes and Costs
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Tanzania's rental income tax is moderate
Effective Tax Rate on Rental Income |
|||
| Monthly Income | US$1,500 | US$6,000 | US$12,000 |
| Tax Rate | 31.5% | 31.5% | 31.5% |
| Click here to see a worked example | |||
| Disclaimer | |||
INDIVIDUAL TAXATION
Non-residents are taxed only on income derived from Tanzania.
INCOME TAX
Non-resident foreigners are taxed at the corporate tax rate of 30%. Taxable income is computed by deducting costs incurred from the gross rental income.
The after-tax profits are further subject to 10% withholding tax.
CAPITAL GAINS TAX
Gains from the disposal of Tanzanian assets by nonresidents are taxed at 20% on the net gains realized. Acquisition costs are deducted from the gross selling price.
However, if the property was used as the individual’s private residence for three years prior to the sale, capital gains are exempt up to TZS15 million (US$11,338).
PROPERTY TAX
Property Tax
Property tax is levied at flat rates by the municipal or city councils based on the size, use and location of the property. Property tax can run from TZS15,000 (US$11) to TZS75,000 (US$57).
Land Rent Tax
Lands held for purposes other than agricultural and pastoral, are taxed at the 11.5% or 12.5% of the economic value. Owners of lands are liable to pay this tax. Land is not taxed as property because all lands belong to the Tanzanian government; hence, land rent tax is imposed.
Tanzania - more data and information
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