Taxation in Tanzania

[4] This "low-rate, broad-base" strategy was considered to be more consistent in practice with both efficient resource allocation and equity than the "high-rate, narrow-base" pattern that had dominated the Tanzanian tax system in the past.

These are taxes levied directly on people's income from employment, business or ownership of property and an investment.

The current corporation tax rate is 30% and 10% for new assemblers of vehicles, tractors and fishing boats for the initial 5 years from commencement of operation.

Income of companies newly listed on the Dar es Salaam Stock Exchange (DSE) is taxed at 25%[6] or three consecutive years.

Income of new manufacturers of pharmaceutical or leather products having performance agreements with Tanzania’s government is taxed at 20% for the first five years.

Sole traders are also required by the law to file estimate of income within 3 months of the new accounting year.

Professional service providers such as accountants, lawyers, engineers, and related consultancies irrespective of their turnover registered under laws of the United Republic of Tanzania.

all the above are obliged to apply for registration to the Commissioner for Domestic Revenue within thirty (30) days of becoming liable to make such application.

They are expected to pay the tax they have self-assed by four equal instalments on or before 31st March, 30th June, 30th September and 31st December.

It includes information about various sources of income, allowable deductions, and credits that help calculate the final tax liability or potential refund.

Filing the return on time and accurately is crucial to avoid penalties and comply with Tanzania's tax regulations.