# Tanzania cross-border tax v0.1

> **General reference only.** This skill is general tax/accounting reference material for AI-assisted workflows. It has not been reviewed for any specific person's facts, documents, elections, deadlines, residency, filing status, or local procedures. Do not rely on it to file, pay, amend, or take a tax position without review by a qualified professional in the relevant jurisdiction.

## Who this applies to

Non-residents with Tanzanian-source income, and Tanzanian payers and residents with foreign income. A non-resident is taxed only on income with a source in Tanzania (ITA s.6(1)(b)). A dividend from a resident corporation, interest from a resident or domestic permanent establishment, and rent and royalties listed there have a Tanzanian source (s.89). A permanent establishment is a place where a person carries on business, and includes a dependent agent who habitually concludes contracts or issues invoices (s.3).

Resident-to-resident withholding is in [Withholding tax](tanzania-withholding-tax.md). Note that file is on tax year 2025.

## Rates, bands and thresholds

| Payment to non-resident | Domestic rate | Tax year | Source |
|---|---|---|---|
| Dividend, DSE-listed corporation | 5% | 2026 | [First Sch para 4(b)(i)](https://www.tra.go.tz/images/uploads/acts/The_Income_Tax_Act.pdf); [TRA](https://www.tra.go.tz/page/withholding-tax) |
| Dividend, other | 10% | 2026 | [First Sch para 4(b)(i)](https://www.tra.go.tz/images/uploads/acts/The_Income_Tax_Act.pdf) |
| Interest | 10% | 2026 | [First Sch para 4(b)(ii)](https://www.tra.go.tz/images/uploads/acts/The_Income_Tax_Act.pdf) |
| Rent | 10% | 2026 | [First Sch para 4(b)(ii)](https://www.tra.go.tz/images/uploads/acts/The_Income_Tax_Act.pdf) |
| Royalty for film, tape, sound recording or like medium | 10% | 2026 | [First Sch para 4(b)(iii)](https://www.tra.go.tz/images/uploads/acts/The_Income_Tax_Act.pdf) |
| Other royalty and other investment returns | 15% under the Act. TRA's table shows royalties at 10%; the statute wins, and the Finance Act 2026 renumbered this paragraph, so confirm the consolidated text | 2026 | [First Sch para 4(b)(iv)](https://www.tra.go.tz/images/uploads/acts/The_Income_Tax_Act.pdf); [TRA](https://www.tra.go.tz/page/withholding-tax) |
| Service fee | 15% | 2026 | [First Sch para 4(c)](https://www.tra.go.tz/images/uploads/acts/The_Income_Tax_Act.pdf) |
| Insurance premium | 10% | 2026 | [FA 2025 s.60(e)(ii)](https://www.tra.go.tz/images/uploads/acts/THE_FINANCE_ACT%2C_2025.pdf) |
| Director's fee | 15% | 2026 | [First Sch para 4(a)(iii)](https://www.tra.go.tz/images/uploads/acts/The_Income_Tax_Act.pdf) |
| Transport operator or charterer without a permanent establishment | 5% | 2026 | [TRA](https://www.tra.go.tz/page/withholding-tax) |
| Natural resource payment | 15% | 2026 | [TRA](https://www.tra.go.tz/page/withholding-tax) |
| Branch profit | 30% | 2026 | [First Sch para 3(1)](https://www.tra.go.tz/images/uploads/acts/The_Income_Tax_Act.pdf) |
| Branch repatriated income | 10% | 2026 | [First Sch para 3(4)](https://www.tra.go.tz/images/uploads/acts/The_Income_Tax_Act.pdf) |
| Gain on land, buildings, mineral or petroleum rights, or resident shares or securities | 30% single instalment | 2026 | [s.115(1)(d)](https://www.tra.go.tz/images/uploads/acts/The_Income_Tax_Act.pdf); [FA 2025 s.57](https://www.tra.go.tz/images/uploads/acts/THE_FINANCE_ACT%2C_2025.pdf); [TRA](https://www.tra.go.tz/page/capital-gains-tax) |
| Non-resident electronic services to individuals | 3% of gross, from 1 July 2026 (2% before). VAT 18%, no input credit | 2026 | [FA 2026 s.24](https://www.tra.go.tz/images/uploads/acts/THE_FINANCE_ACT%2C_2026.pdf); [TRA](https://www.tra.go.tz/page/digital-service-tax) |

Treaty ceilings, from the treaties TRA publishes ([list](https://www.tra.go.tz/resource-center/9)). Apply the lower of treaty and domestic rate, and check beneficial ownership.

| Partner | Dividends | Interest | Royalties | Management or technical fees | Source |
|---|---|---|---|---|---|
| Canada | 20% (15% voting) / 25% | 15% | 20% | 20% | [Treaty](https://www.tra.go.tz/images/uploads/agreements/canada.pdf) |
| Denmark | 15% | 12.5% | 20% | 20% | [Treaty](https://www.tra.go.tz/images/uploads/agreements/Denmark.pdf) |
| Finland | 20% | 15% | 20% | 20% | [Treaty](https://www.tra.go.tz/images/uploads/agreements/Finland.pdf) |
| India | 10% (10% holding) / 15% | 12.5% | 20% | 20% | [Treaty](https://www.tra.go.tz/images/uploads/agreements/India.pdf) |
| Italy | 10% | 15% | 15% | Taxable in both, no cap | [Treaty](https://www.tra.go.tz/images/uploads/agreements/Italy.pdf) |
| Norway | 20% | 15% | 20% | 20% | [Treaty](https://www.tra.go.tz/images/uploads/agreements/Norway_1.pdf) |
| South Africa | 10% (15% capital) / 20% | 10% | 10% | No article found | [Treaty](https://www.tra.go.tz/images/uploads/agreements/Southafrica.pdf) |
| Sweden | 15% (25% voting) / 25% | 15% | 20% | 20% | [Treaty](https://www.tra.go.tz/images/uploads/agreements/Sweden.pdf) |
| Zambia | No rate ceiling | No rate ceiling | No rate ceiling | Unverified | [Treaty](https://www.tra.go.tz/images/uploads/agreements/Zambia.pdf) |

Treaty terms prevail to the extent the Act provides in s.154. We read TRA's list, not an entry-into-force record, so confirm a treaty is in force for the year before relying on it. No treaty raises a domestic rate, so a 20% ceiling on a 15% service fee leaves 15%.

## The base

1. Find the source (s.89) and whether a permanent establishment exists. If so, the branch computes income under s.92 and repatriated income under s.93.
2. If not, the resident payer withholds on the gross payment (ss.105, 106). Payments by individuals outside a business are outside these sections.
3. Final or creditable status follows s.111 for the payment concerned.
4. A change of more than 50% in underlying ownership within three years treats the entity's assets as realised (s.56(1)).
5. Resident with foreign tax: credit up to the Tanzanian average rate on that income, or elect a deduction (s.98).

## Deadlines and filing

1. **Withholding:** pay and file the statement within seven days after month end (s.109(1), (2); [TRA](https://www.tra.go.tz/page/withholding-tax)). Certificates come from the taxpayer portal ([TRA](https://www.tra.go.tz/page/withholding-tax)).
2. **Gains:** single instalment before transfer. The Registrar will not register a land transfer without TRA's certificate ([TRA](https://www.tra.go.tz/page/capital-gains-tax)).
3. **Digital services:** register on TRA's simplified online portal, no threshold; file and pay by the 20th of the following month ([TRA](https://www.tra.go.tz/page/digital-service-tax)). Portal: https://taxpayerportal.tra.go.tz/, Return Filing per the [TRA manual](https://www.tra.go.tz/images/uploads/pages/Return_Filing_and_Payment_User_Manual_%281%29_New.pdf).
4. **Branch:** instalments and final return as in [Corporate income tax](tz-corporate-income-tax.md).
5. **TIN:** within 15 days of starting ([FA 2026 s.72](https://www.tra.go.tz/images/uploads/acts/THE_FINANCE_ACT%2C_2026.pdf)).

## Penalties and interest

Late payment or filing: per month, 2.5% of the unpaid tax or 15 currency points for a body corporate (TZS 225,000), whichever is higher ([TAA s.89](https://www.tra.go.tz/images/uploads/acts/Tax_Administration_Act.pdf)). Interest at the statutory rate compounded monthly; a withholding agent cannot pass it to the payee ([TAA s.87(3)](https://www.tra.go.tz/images/uploads/acts/Tax_Administration_Act.pdf)).

## Cross-border points

Pricing between associates: [Transfer pricing](tz-transfer-pricing.md). Exports, imports and non-resident VAT: [VAT](tanzania-vat.md). The Finance Act 2026 also makes an online marketplace the deemed supplier of electronic services to unregistered Mainland customers ([FA 2026 s.94](https://www.tra.go.tz/images/uploads/acts/THE_FINANCE_ACT%2C_2026.pdf)).

## Two worked examples that recompute

**Example 1: service fee to Sweden.** A Tanzanian company pays a Swedish consultant, no permanent establishment, TZS 100,000,000. Domestic 15%, treaty ceiling 20%: withhold 15%.

```oa-check
name: Service fee, lower of domestic and treaty
inputs:
  fee: 100000000
  domestic: 0.15
  treaty: 0.20
steps:
  - rate: min(domestic, treaty)
  - wht: fee * rate
  - net: fee - wht
expected:
  wht: 15000000
  net: 85000000
```

**Example 2: dividend through a South African parent, or a branch?** Profit before tax is TZS 1,000,000,000 and all of it goes to a South African owner holding 15% or more. As a subsidiary: 30% tax, then 10% on the TZS 700,000,000 dividend (domestic and treaty agree), TZS 370,000,000 in total. As a branch that repatriates the same TZS 700,000,000: 30%, then 10%, the same figure; the South Africa treaty caps the branch levy at 10%. If the repatriated amount differs, the s.93 formula decides, so model it before choosing.

```oa-check
name: Subsidiary against branch, full payout
inputs:
  profit: 1000000000
steps:
  - cit: profit * 0.30
  - after: profit - cit
  - sub_total: cit + after * 0.10
  - branch_total: cit + after * 0.10
expected:
  sub_total: 370000000
  branch_total: 370000000
```

## Ask the client first

1. Is the recipient resident, and is it the beneficial owner?
2. Is there a place of business or dependent agent in Tanzania?
3. What is the payment, and is the payer in business?
4. Which treaty country, and is a residence certificate available?
5. Are the payer and recipient associates?
6. Does the sale involve land, rights or shares in a resident entity?

## Sources

All read on 2026-11-01. Unverified: Zambia fees, the entry-into-force status of each treaty, and the 2026 consolidated numbering of First Schedule para 4(b).

| Source | Link | Read |
|---|---|---|
| Income Tax Act Cap. 332 R.E. 2023 | https://www.tra.go.tz/images/uploads/acts/The_Income_Tax_Act.pdf | 2026-11-01, ss.3, 6, 11, 12, 19, 33, 56, 86, 89, 92, 93, 98, 105 to 117, First Sch |
| Finance Act 2026 | https://www.tra.go.tz/images/uploads/acts/THE_FINANCE_ACT%2C_2026.pdf | 2026-11-01, section on income tax part |
| Finance Act 2025 | https://www.tra.go.tz/images/uploads/acts/THE_FINANCE_ACT%2C_2025.pdf | 2026-11-01, section on income tax part |
| Tax Administration Act Cap. 438 R.E. 2023 | https://www.tra.go.tz/images/uploads/acts/Tax_Administration_Act.pdf | 2026-11-01, ss.86 to 90, First Sch |
| TRA Withholding tax | https://www.tra.go.tz/page/withholding-tax | 2026-11-01, sections on rates and filing |
| TRA Capital Gains tax | https://www.tra.go.tz/page/capital-gains-tax | 2026-11-01, sections on rates and filing |
| TRA Digital Service Tax | https://www.tra.go.tz/page/digital-service-tax | 2026-11-01, sections on rates and filing |
| TRA Double taxation agreements | https://www.tra.go.tz/resource-center/9 | 2026-11-01, sections on rates and filing |

Not yet confirmed: entry-into-force status of each treaty; Zambia fees; consolidated numbering of First Schedule para 4(b) after the Finance Act 2026.