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Tanzania Withholding Tax Calculator

Withholding tax calculator for Tanzania — 5%, 10%, 15% rates on services, rent, dividends, interest. 2026 TRA rules.

How to apply withholding tax in Tanzania

1
Identify the payment type: services, dividends, interest, royalties, rent.
2
Confirm whether the payee is resident or non-resident.
3
Apply the matching rate (5–15%) — tool does this automatically.
4
Withhold and remit to TRA within 7 days of month-end.

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.

Frequently asked questions

What are the withholding tax rates in Tanzania?
5% on services to residents (most cases), 10% on management fees, 15% on dividends to non-residents, 10% on interest, 10% on royalties — confirm against your specific transaction.
Is WHT a final tax?
For non-residents and dividends from listed companies, yes; for residents on services, it is generally creditable against final tax.
Who is responsible for withholding?
The payer — typically a company or government body — must withhold and remit on behalf of the recipient.
When is WHT remitted?
Within 7 days of the end of the month in which the payment was made.
Do I need a TIN to claim WHT credit?
Yes — both payer and payee must be TIN-registered.

Want this automated for your business?

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