Tanzania Withholding Tax Calculator
Withholding tax is deducted at source by the payer and remitted to TRA. TRA's schedule sets a different rate for each kind of payment, and often a different rate again for a non-resident payee. Pick the payment type and residency to see the rate and the amount withheld.
Filed under Business & VAT
Key facts
- The payer withholds the tax and remits it to TRA.
- Commercial rent, interest and royalties are 10%.
- Service fees are 5% to residents and 15% to non-residents.
- VAT withholding is 3% on goods and 6% on services.
How Tanzania Withholding Tax is calculated
TRA publishes the rates by payment type: commercial rent 10%, interest 10%, royalties 10%, dividends 10% (5% where a resident corporation holds 25% or more of a DSE-listed payer), service fees 5% to a resident and 15% to a non-resident, and the VAT withholding obligations at 3% on goods and 6% on services. Some rows apply to residents only or non-residents only, and the tool says so rather than inventing a number.
Withheld = rate × gross paymentWithholding tax rates by payment type
| Payment type | Resident payee | Non-resident payee |
|---|---|---|
| Rental income (commercial purposes) | 10% | 10% |
| Dividends from other corporations | 10% | 10% |
| Interest | 10% | 10% |
| Royalties | 10% | 10% |
| Service fees | 5% | 15% |
| Technical service fees (mining) | 10% | 15% |
| Payment for hiring a motor vehicle | 10% | — |
| VAT withholding — supply of goods by a withholding agent | 3% | — |
| VAT withholding — supply of services by a withholding agent | 6% | — |
| Directors' fee (non-full-time directors) | 15% | 15% |
| Commission to agents on mobile-money transfers | 10% | — |
Tanzania Withholding Tax worked examples
A payment of 1,000,000 TZS
Salim lets a commercial property in Kariakoo and never handles the tax himself — his tenant withholds it.
A commercial landlord receiving 1,000,000 TZS has 100,000 TZS withheld at 10%, because the tenant remits it to TRA. A non-resident providing services is withheld at 15% (150,000 TZS on the same amount), where a resident service provider is withheld at 5%.
A larger payment of 5,000,000 TZS
The same landlord's larger rent roll, showing the rate holds as the amount rises.
A commercial landlord receiving 5,000,000 TZS has 500,000 TZS withheld at 10%, because the tenant remits it to TRA. A non-resident providing services is withheld at 15% (750,000 TZS on the same amount), where a resident service provider is withheld at 5%.
Tanzania Withholding Tax: assumptions and limits
What it assumes
- The rates come from TRA's published withholding table and depend on the type of payment and the recipient's residency.
- Withholding is a payment on account: the amount withheld is credited against the recipient's own tax liability, not an extra tax.
Where the result does not apply
- Does not decide whether a particular payment falls inside a withholding category, or whether a certificate or exemption applies.
- Some payments carry no withholding at all; the table marks those cases rather than guessing a rate.
- A non-resident's position can be affected by a double-taxation agreement, which this tool does not apply.
Tanzania Withholding Tax FAQs
Who pays withholding tax — the payer or the payee?
The payer withholds it from the payment and remits it to TRA. The payee receives the net amount.
What is the withholding tax on commercial rent in Tanzania?
10% of the rent, withheld by the tenant and remitted to TRA.
Are the rates different for non-residents?
Often. Service fees are withheld at 5% for a resident and 15% for a non-resident, for example, and technical service fees in mining differ in the same way.
Does withholding tax settle the payee's tax bill?
No. It is a payment on account — a resident payee still reports the income and claims the withheld tax as a credit.
Results are estimates provided for information only and do not constitute financial, legal or tax advice. Consult a qualified professional before making financial decisions.
Delta Tech Solutions prepared this page. No external tax, accounting or legal professional reviewed it — the figures were checked against the sources listed above, and you should confirm anything you rely on with the authority that sets it.
Maintained by David M at Delta Tech Solutions · Figures last checked 19 September 2026 · Next check due 19 March 2027
Content updated 24 October 2026
Read the guide:
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