Taxation in Tanzania

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Tax administration and collection in Tanzania is undertaken by the Tanzania Revenue Authority (TRA), which operates under the Ministry of Finance. Municipal or City Councils also administer and collect a levy known as city service levy.

The laws that are applicable include; - Income Tax Act, The Value Added Tax Act of 2014, Local Government Finance Act, Local Government Finance Bylaws, Social Security Regulatory Authority Act, National Social Security Fund Act, Workers Compensation Fund Act, Vocational Education Training Act, Stamp Duty Act, The East Africa Community Custom Management Act.

In summary, the following are the main types of taxes and levies in Tanzania:

a)    Corporation tax;

b)    Withholding tax;

c)  Payroll taxes which include Pay As You Earn (PAYE), Skills and Development Levy (SDL), social security (pension) contributions and Workers Compensation Fund (WCF) levy;

d)    Value Added Tax (VAT);

e)    Customs and excise duties;

f)      Stamp duty; and

g)    City service levy

Brief discussion on each of these tax type or levy here...

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