The complex tax structure is divided into direct and indirect
taxation. The first relates to income tax and property while the
second refers to the consumption and international trade.
The entity that manages all transactions relating to 'taxation is the Tanzania Revenue Authority (TRA). Please note that the Agreement is in force between Italy and Tanzania to avoid double taxation.
The current rate is 35% and is levied on taxable profits accumulated
by any company which carries on business in the country. To this end,
all companies (including subsidiaries of foreign companies) are
required to compile an annual interim report, a kind of
self-assessment, based on estimated earnings, while the final report
must be filed within three months from the end of "accounting period
The tax, which is deducted with the comparison between the two investigations, must be paid when submitting the final.
Compete with each resident, meaning that for every person residing
permanently in Tanzania, or that has been present in the country for a
period of at least 183 days in the year under reference, or at least
122 days in 'as in the reference year in progress three previous
All components of salary, with the exception of housing assistance, are taxable. The income tax is divided into four groups of progressive rates ranging from 17.5% currently to 35%. All employees are required to pay their income tax based on the Pay as You Earn (PAYE) Scheme
Capital gains tax
The rate of tax imposed on capital gains is currently 10% calculated on the difference between the value of the financial interest or sold and the determined cost of that interest or financial assets.
Value added tax
This is a general tax levy of 20% consumption of most goods and
services produced in the country or imported. Any company that
produces or sells goods on which VAT is applicable, before starting
his business activities, must register with the offices of TRA.
The import of capital goods for investment in what are the priority sectors of development from' Investment Promotion Center, is not subject to VAT.
Consumption tax on locally manufactured goods
It is applied against certain local products such as drinks, beer, cigarettes and petroleum products. This is the ad valorem rate of which differs depending on the product.
This is an ad valorem duty calculated on the CIF value of imported
goods in the country.
The current tariff regime establishes four classes of rates: 5%, 10%, 20% and 25%.
Holders of "Certificate of incentives" are exempt from payment of import duties on capital goods related to sectors deemed strategic and priority development, such as fertilizers, pesticides, tractors and even equipment for the infrastructure sector.
In general, it is not required "certificate of incentives" to be exempt from payment of import duty on tractors, as well as on capital goods for mining.
Imports of raw materials, spare parts and capital goods are taxed at 5%, semi-finished products and parts to 10%, finished products and parts of motor vehicles to 20%. The increased rate of 25% refers to consumer goods.
Rate of 10% is levied on motor vehicles, while luxury goods are taxed
Specific rates are reserved for drinks and spirits import, as well as to petroleum products.