Expenses incurred for the purpose of business are deductible unless they are specifically disallowed or are incurred wholly and exclusively for earning business income.

The following general expense types are not deductible or have limited deductibility for tax purposes in Tanzania:

• Personal expenses;
• Capital expenditure that provides a benefit for more than 12 months;  
• Capital expenditure incurred on prospecting, exploration, and development of natural resources;
• Bribes and similar payments;
• Fines and penalties paid to the Government for breach of law;
• Expenditure incurred for earning exempt income;
• Realized foreign exchange loss on an interest-free debt exceeding 70% of the debt obligation (effective 1 July 2020);
• Donations made to organizations other than educational institutions and certain government authorities;
• Donations made to approved charitable institutions and social development project in excess of 2% of taxable income;
• Corporate income tax;
• Withholding tax paid by the withholder effective from 1 July 2017; and
• Payments to foreign affiliates, if not at arm's length basis.