Tanzania Withholding Tax Calculator

Withholding tax (WHT) in Tanzania

Withholding tax is a tax that the payer deducts from a payment at source and remits directly to the TRA on behalf of the recipient. It applies to a wide range of cross-border and domestic payments — services, dividends, interest, royalties, rent, and insurance premiums — at rates from 0% to 15% depending on the nature of the payment and the residency status of the payee.

Common WHT rates in 2026

• Service fees — resident: 5%
• Service fees — non-resident: 15%
• Management & technical fees: 10%
• Interest: 10% (banks have specific exemptions)
• Royalties: 10% resident / 15% non-resident
• Dividends: 5% listed / 10% unlisted resident / 15% non-resident
• Rent on commercial property: 10%

How to remit WHT

1. Withhold at the time of payment.
2. Issue the payee a WHT certificate (Form ITX-264).
3. File and remit to TRA within 7 days of month-end.
4. The payee uses the certificate to claim credit on their return.

WHT is a major compliance pitfall for SMBs paying foreign suppliers — a missed 15% withholding can become a 15% straight cost. Tawala's accounting module flags every payment that triggers WHT and prepares the certificate automatically. See related: Corporate Tax Calculator, VAT Calculator.

Take this further

WHT is deducted by the payer, so the risk sits with you, not your supplier. Tawala Finance applies the right rate per supplier and per payment type, produces the withholding certificates, and Tawala Accounting tracks the remittance.

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