Presumptive Tax in Tanzania: How Small Traders Are Taxed
Individual traders in Tanzania with turnover up to 200 million TZS a year are taxed under the presumptive regime, which is based on turnover rather than on profit and accounts. This guide sets out the bands, the flat rates transport operators pay instead, and the relief a new business gets.
Reviewed by the Calculator editorial team · Last updated 19 September 2026
Who the regime covers
It covers individual traders — sole proprietors — whose annual turnover does not exceed 200 million TZS. A company is outside it. The appeal for a small trader is that no audited accounts are required unless the trader elects to keep them, because the tax is assessed from turnover.
The turnover bands
TRA publishes two columns: the tax when the trader keeps complete records, and a flat amount when records are incomplete. Keeping records is therefore not only good practice, it is usually cheaper: at 5 million TZS of turnover a trader with records pays 3% of the amount above 4 million, while one without records pays a flat 100,000 TZS.
| Annual turnover | With complete records | Without complete records |
|---|---|---|
| Up to 4,000,000 | Nil | Nil |
| 4,000,000 – 7,000,000 | 3% of the amount above 4,000,000 | 100,000 flat |
| 7,000,000 – 11,000,000 | 90,000 plus 3% above 7,000,000 | 250,000 flat |
| 11,000,000 – 200,000,000 | 4% of turnover | 4% of turnover |
Transport operators pay a flat rate instead
If you carry passengers or goods, the tax is a fixed annual amount that depends on the vehicle rather than on what it earns. A taxi pays 180,000 TZS a year, a ride-hailing car 350,000, ride-sharing 450,000 and a special hire vehicle 750,000. Passenger service vehicles are banded by seat count, tour vehicles by the number of tourists, and goods vehicles by carrying capacity in tonnes.
The relief for a new business
A new taxpayer whose turnover falls between 4 million and 200 million TZS pays no tax for the first 12 months of business, provided the conditions the Commissioner sets are met. It is a genuine relief rather than a deferral, but it applies once — the year after, the normal bands apply.
A worked example
An individual trader with 30,000,000 TZS of annual turnover and complete records pays 1,200,000 TZS under the presumptive regime. A taxi operator on the flat schedule pays 180,000 TZS a year and a ride-hailing driver 350,000 TZS, whatever the vehicle earns. Above 200 million TZS the regime stops applying altogether and the trader files a full income tax return instead, so there is no band to look up at that point.
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Frequently asked questions
What is the turnover limit for presumptive tax in Tanzania?
200 million TZS a year. Above that the trader moves to the ordinary income tax regime and files a return.
Does keeping records reduce the tax?
Usually. With complete records the tax is calculated on turnover at 3% or 4%; without them TRA's table prescribes a flat 100,000 or 250,000 TZS in the lower bands.
Do taxi and ride-hailing drivers pay turnover tax?
No. They pay a flat annual amount by vehicle class — 180,000 TZS for a taxi, 350,000 for ride hailing, 450,000 for ride sharing and 750,000 for special hire.
Is there relief for a new business?
Yes. A new taxpayer with turnover between 4 million and 200 million TZS pays nothing for the first 12 months of business.