Tanzania Corporate Tax Guide 2026

Overview — Corporate Tax Rates

Tanzania's corporate income tax is governed by the Income Tax Act, Cap. 332. A company is resident in Tanzania if it is incorporated under Tanzanian law, has its place of effective management in Tanzania, or has its registered office in Tanzania. Resident companies are taxed on worldwide income, while non-resident companies are taxed only on Tanzanian-source income. The standard CIT rate is 30%, with the following special rates for specific sectors:

• 30% — standard rate for all other resident companies
• 25% — agriculture and agro-processing companies
• 20% — mining companies (mineral extraction and related activities)
• 10% — Export Processing Zones (EPZ) and Special Economic Zones (SEZ) operators
• 0% — strategic investors with approved certificates (subject to minimum investment thresholds)

Branch Profits Tax

Non-resident companies operating in Tanzania through a permanent establishment (branch) are subject to CIT at 30% on profits attributable to the Tanzanian branch. In addition, branch profits remitted to the head office are subject to branch profits tax at 10%, which is withheld at source. This effectively brings the total tax burden on branch profits to approximately 37% (30% CIT + 10% on post-CIT profits).

Capital Allowances and Depreciation

Tanzania allows capital deductions (depreciation) on qualifying assets as follows:

• Industrial buildings — 5% per annum (straight-line)
• Plant and machinery — 37.5% per annum (declining balance)
• Motor vehicles — 25% per annum (declining balance)
• Computers and IT equipment — 50% per annum (declining balance)
• Farm works — 100% in the first year

Capital allowances are computed on a reducing balance basis for most assets, except industrial buildings which use straight-line. The deduction is available only for assets used in the production of business income.

Tax Incentives

Tanzania offers a range of tax incentives to encourage investment:

• EPZ/SEZ — 10-year corporate tax holiday, followed by 10% for 10 years, duty-free import of capital goods
• Strategic investors — 0% CIT for 5–15 years depending on sector and investment size (minimum USD 50M in most cases)
• Agriculture — 25% CIT rate, duty-free import of agricultural machinery and inputs
• Mining — 20% CIT rate, VAT exemptions on qualifying supplies, import duty exemptions
• Tourism — VAT exemptions on tourism-related services, reduced import duties on hotel equipment

Filing and Payment

Corporate tax returns must be filed annually by 30 June following the end of the tax year (calendar year). Companies must pay provisional tax in two instalments: the first by 31 March and the second by 31 December of the tax year. Each instalment is 50% of the estimated annual tax liability. Final tax payable (or refund due) is determined upon filing the annual return. Late filing attracts a penalty of TZS 100,000 plus 1% per month of the tax due.

FAQs

What is the difference between a resident and non-resident company?

A resident company is incorporated in Tanzania or has its place of effective management in Tanzania. Resident companies are taxed on worldwide income, while non-resident companies are taxed only on Tanzanian-source income.

Can losses be carried forward?

Yes, tax losses can be carried forward for up to 5 years. Losses from mining operations can be carried forward for up to 10 years. Loss carry-back is not permitted.

Are dividends taxable?

Dividends paid by a Tanzanian company to a resident shareholder are subject to withholding tax at 5%. Dividends paid to non-resident shareholders are subject to WHT at 10%, subject to double tax treaty relief.

Is there a minimum tax?

Yes, Tanzania imposes a minimum tax of 0.3% of gross turnover for companies that have been in operation for more than 3 years and have no taxable profit. This applies only to companies with annual turnover exceeding TZS 50 million.

Disclaimer

This guide provides general information about Tanzanian corporate tax for the 2026 tax year. Tax laws, rates, and regulations may change. Always consult with a qualified Tanzanian tax advisor or the Tanzania Revenue Authority for advice specific to your situation. InvestmentKit does not provide tax advice.