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8.1.2. Other Taxes

The following table provides an overview of other taxes that may be imposed on a company doing business in the country.

Tax Type Rate(s) Notes
Capital Duty Nil There is no capital duty in Tanzania.
Payroll Tax / Salary Tax Varies depending on the gross salaries of employees Employers are required to withhold tax from the gross salaries of the employees at applicable rates under the PAYE system. Additionally, the following contributions are made by the employer: • Skills and development levy 4% (previously 4.5% until 30 June 2020) of cash emoluments of employees • Workers compensation fund - 1% (private sector employers) and 0.5% (public sector employers) of cash emoluments of employees on a monthly basis.
Social Security Employer Contribution 10% Employers are required to contribute to the social security fund at the rate of 10% of the basic salary of employees.
Social Security Employee Contribution 10% Employees are required to contribute to the social security funds at the rate of 10% of the basic salary, which is withheld by the employer.
Stamp Duty Varies depending on the documents, transactions Stamp duty is generally levied on the transfer of property, leases, share transfers, and issue and transfer of debentures. The rates vary according to the type of transactions and documents. For most of the instruments, the applicable stamp duty rate is 1% of the consideration.
Transfer Tax Nil There is no transfer tax in Tanzania.
Property Tax (Real property) Varies depending on the size, use and location of the property Property tax is levied on the value of the property. The rates vary depending on the size, value, and location of the property. For the Dar es Salaam region, property tax is 0.15% on residential property and 0.20% on commercial property. However, for unvalued properties, TZS 12,000 is payable for a normal building and TZS 60,000 for a storeyed building.
Customs Duty 0%, 10%, 25% Custom duties are levied on products imported into Tanzania. The rates are imposed according to the Common External Tariff plan of East African Community Customs Management Act. Following custom duties are levied on the goods imported in Tanzania: Raw materials, agricultural inputs, pure-bred animals, medicines, and capital goods – 0%; Semi-finished goods – 10%; Finished consumer goods – 25%. A ‘railways development levy’ (previously known as ‘infrastructure levy’ up to 30 June 2015) is also applicable at the rate of 1.5% of the value of imported goods (cost, insurance, and freight) entered for home consumption, subject to certain exceptions.
Excise duty Varies depending on the type of product Excise duty is levied on certain products imported or manufactured in Tanzania.