Tanzania

{"ftc_utility":"medium","fbar_trigger_notes":"US expats working in Tanzania often hold local Tanzanian Shilling (TZS) bank accounts. Any account or combination of accounts exceeding USD 10,000 at any point in the calendar year triggers FBAR filing (FinCEN 114). Tanzania does not impose restrictions on foreign nationals holding local bank accounts.","ftc_utility_reason":"Tanzania taxes residents on worldwide income at rates up to 30%. US expats paying Tanzanian income tax can claim the Foreign Tax Credit against their US tax liability on the same income. The FTC is useful where Tanzanian tax rates approach or exceed US effective rates, but the absence of a tax treaty means there is no reduced withholding or treaty-based sheltering available.","presence_day_count_notes":"Tanzania does not impose strict entry or stay limits for most nationalities under tourist or business entry. Long-stay residents typically hold a residence permit. The 330-day physical presence test is practically achievable, though maintaining valid residence documentation is advisable. Days spent in Tanzania count toward the 330-day requirement.","typical_qualifying_method":"either","housing_exclusion_available":true,"physical_presence_test_applies":true,"estimated_housing_exclusion_usd":16000,"local_tax_rate_on_earned_income":0.3,"bona_fide_residence_test_applies":true}

{"pension_income":{"notes":"Pension income received by Tanzania tax residents is subject to income tax at progressive rates up to 30%. Qualifying contributions to approved Tanzanian pension funds may receive deductions. Foreign pension income has no special exemption.","tax_rate":0.3,"locally_taxed":true},"social_security":{"notes":"No US-Tanzania totalization agreement or income tax treaty exists. US Social Security benefits received by Tanzania tax residents are not protected from Tanzanian income tax. In practice, enforcement is limited but the legal position is that such income is taxable.","locally_taxed":true,"treaty_protection":false},"roth_distributions":{"notes":"No US-Tanzania tax treaty exists. Roth distributions could be treated as foreign income receipts by Tanzanian tax authorities. The tax-free nature under US law is not recognized in Tanzania. In practice, many US expats rely on FEIE or FTC rather than treaty protections.","locally_taxed":true},"us_401k_ira_distributions":{"notes":"Tanzania and the US do not have an income tax treaty. US 401k and IRA distributions received by a Tanzania tax resident would be treated as foreign-source pension or employment income and potentially subject to Tanzanian income tax at progressive rates up to 30%. No treaty protection exists to exempt or reduce this.","tax_rate":0.3,"locally_taxed":true,"treaty_protection":false}}

{"rate":0.3,"notes":"Tanzania does not have a standalone capital gains tax. Gains on disposal of assets are generally included in income and taxed at applicable rates, with specific withholding rates applying to land and buildings transactions.","details":{"tax_type":"Capital Gains Tax","country_name":"Tanzania","country_iso_code":"TZA","source_references":["PwC Worldwide Tax Summaries - Tanzania","Tanzania Income Tax Act (Cap. 332)"],"last_verified_date":"2026-06-03","general_description":"Capital gains are not separately categorized under a distinct CGT regime. Gains from disposal of assets are folded into taxable income. Land and buildings disposals attract a 10% withholding tax on the gain for residents; gains from mining and petroleum interests are taxed at 30%. Non-residents pay 20% withholding on gains from disposal of Tanzanian assets.","corporate_capital_gains":{"rate":0.3,"tax_treatment":"Gains included in corporate taxable income and taxed at the standard corporate rate of 30%."},"individual_capital_gains":{"rate":0.1,"tax_treatment":"Gains from land and buildings subject to 10% withholding for residents. Non-resident gains from Tanzanian asset disposals taxed at 20% withholding. Other gains folded into ordinary income taxed at progressive rates up to 30%.","non_resident_rate":0.2,"land_and_buildings_resident_rate":0.1}}}

{"notes":"Dividends paid to residents are subject to 5% withholding tax where the recipient holds at least 25% of shares in the paying company listed on the Dar es Salaam Stock Exchange, and 10% otherwise. Non-residents are subject to 10% withholding tax on dividends. The withholding is generally a final tax.","rates":[{"rate":0.05,"type":"withholding","notes":"Resident shareholders holding 25%+ in DSE-listed company"},{"rate":0.1,"type":"withholding","notes":"Resident shareholders in other cases"},{"rate":0.1,"type":"withholding","notes":"Non-resident shareholders - standard rate; treaty rates may reduce this"}]}