EAC Tax Comparison — TZ vs KE vs UG vs RW
Cross-reference key taxes across the East African Community — Tanzania, Kenya, Uganda, Rwanda. VAT, corporate, withholding.
| Tax | Tanzania | Kenya | Uganda | Rwanda |
|---|---|---|---|---|
| VAT (standard rate) | 18% | 16% | 18% | 18% |
| Corporate income tax — resident | 30% | 30% | 30% | 30% |
| Corporate tax — newly listed | 25% (3 yr) | 25% (5 yr) | 25% (3 yr) | — |
| Turnover tax (SMB) | 3% | 1% | 0.5% | 3% |
| Personal income tax (top band) | 30% | 35% | 40% | 30% |
| Withholding — services (resident) | 5% | 5% | 6% | 15% |
| Withholding — dividends (non-res) | 15% | 15% | 15% | 15% |
| Withholding — interest (non-res) | 10% | 15% | 15% | 15% |
| Capital gains (resident) | 10% | 15% | 5–18% | 5% |
| Capital gains (non-resident) | 20% | 15% | 5–18% | 5% |
| Stamp duty (typical) | 1% | 1–4% | 1.5% | 0.5–1.5% |
| Skills/training levy | 3.5% SDL | — | 1% NSSF | 3% RSSB |
| Pension — combined employer+ee | 20% NSSF | 12% NSSF | 15% NSSF | 8% RSSB |
| EAC Common External Tariff | 0/10/25/35 | 0/10/25/35 | 0/10/25/35 | 0/10/25/35 |
EAC tax cross-reference — at a glance
The five major East African Community (EAC) economies — Tanzania, Kenya, Uganda, Rwanda, and Burundi — share an EAC Common External Tariff but apply different domestic taxes. For cross-border traders, regional employers, and investors deciding where to establish, here are the headline numbers.
Key takeaways
- VAT — Tanzania, Uganda, Rwanda all at 18%. Kenya is 16%.
- Corporate tax — uniform 30% for residents across all four major EAC states. Newly-listed company reliefs vary.
- Withholding tax on services — Tanzania and Kenya 5%; Uganda 6%; Rwanda the highest at 15%.
- Pension — Tanzania has the highest mandatory pension load (20% combined NSSF). Rwanda lowest (8% RSSB).
- SMB turnover tax — Uganda's 0.5% is by far the lowest; Tanzania and Rwanda both at 3%.
Where to base your business
- Tanzania — biggest single market in EAC by population (62M), strong tourism, strategic ports (Dar, Tanga, Mtwara) for landlocked neighbours.
- Kenya — most developed financial sector, easiest for tech/SaaS due to talent pool, lowest VAT.
- Uganda — easiest for SMB turnover regime; growing oil sector; landlocked.
- Rwanda — fastest digital infrastructure, lowest pension load, but smallest market (~13M).
EAC Common External Tariff
All EAC partner states apply the same external customs tariff bands (0% raw materials, 10% intermediate, 25% finished, 35% sensitive). Goods originating in any EAC state move duty-free within the region under EAC Customs Union rules.
Pair with Customs Duty, Corporate Tax, Withholding Tax, Full Payroll Calculator.
Take this further
Trading across EAC borders means more than one tax regime in one set of books. Tawala Accounting supports multi-entity, multi-currency consolidation, and Tawala Finance keeps each jurisdiction reportable on its own terms.
Not sure which module fits? Compare every option under Tawala solutions, or find the setup for your sector under Tawala by industry.
Frequently asked questions
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