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.
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