This article provides a comprehensive overview of the corporate tax regime in Tanzania for 2025. Key features, including the main tax rate, alternative regimes for specific industries, and relevant surcharges, are clearly presented along with practical considerations for corporate entities in the country.
Summary of Corporate Tax Rates in Tanzania (2025)
Tanzania operates a primarily flat corporate income tax system that applies to resident companies, with several significant reduced rates for qualifying industries or business circumstances. The tax assessment is based on the taxable profits of corporate entities, and all figures below are presented in Tanzanian shillings (TZS).
| Tax/Regime | Rate (Percentage %) | Condition/Industry |
|---|---|---|
| Standard Corporate Income Tax | 30% | All companies (default rate) |
| Reduced CIT Rate – Newly Listed Companies | 25% | Applies for three consecutive years to companies newly listed on the Dar es Salaam Stock Exchange (DSE) with ≥30% of shares publicly listed |
| Reduced CIT Rate – New Vehicle/Tractor/Boat Assemblers | 10% | Applies for the first five years from start of operations |
| Reduced CIT Rate – New Manufacturers (Pharmaceutical/Leather) | 20% | Applies for the first five years if a performance agreement exists with the Tanzanian government |
| Alternative Minimum Tax (AMT) | 0.5% | Applies if a company has unrelieved tax losses for the current and preceding two income years (exceptions for agricultural, tea processing (1 July 2024–30 June 2027), health, and education providers) |
| Tax on Repatriated Income of Permanent Establishments | 5% | Applies to repatriated profits of PEs in Tanzania |
| Turnover Tax (Mining/Oil/Gas Service Providers) | 5% | Applied on turnover instead of the standard 30% net income tax, for technical and management service providers to mining, oil, and gas entities |
Standard Corporate Income Tax Rate
The flat corporate income tax rate in Tanzania is 30% of taxable profits. This rate applies to most resident companies, barring qualification for specific reduced rates or surtaxes described below.
Reduced Tax Rates and Special Regimes
Several industries and corporate circumstances in Tanzania benefit from reduced rates or alternative tax computations for a limited time. Major reductions available in 2025 include:
- Newly listed companies on the Dar es Salaam Stock Exchange (DSE), provided at least 30% of their shares are publicly listed, pay 25% CIT for three consecutive years.
- New assemblers of vehicles, tractors, or fishing boats enjoy a significantly reduced 10% CIT rate for the first five years after launching operations.
- New manufacturers of pharmaceutical or leather products with a formal performance agreement with the Tanzanian government benefit from a 20% CIT rate for the first five years post-commencement of business activities.
- The Alternative Minimum Tax (AMT) of 0.5% applies to companies with perpetual unrelieved tax losses over the present and prior two years, with specific exemptions as noted above.
Taxation of Permanent Establishments and Turnover Tax
For permanent establishments (PEs), a 5% tax applies to repatriated profits. In addition, technical and management service providers to mining, oil, and gas entities are subject to a 5% turnover tax as opposed to the standard 30% tax on net income.
Detailed Conditions for Reduced and Alternative Rates
The following table provides a comparison of the key reduced and alternative tax rates, including the core eligibility criteria:
| Rate (%) | Industry/Sector | Main Condition/Note |
|---|---|---|
| 25% | Newly Public Companies (DSE) | 3 years; ≥30% shares listed |
| 10% | Vehicle/Tractor/Boat Assemblers | First 5 years of operations |
| 20% | Pharmaceutical/Leather Manufacturing | First 5 years with government agreement |
| 0.5% | Any corporate (with caveats) | AMT if unrelieved losses: current & previous 2 years; exceptions apply |
| 5% | PE Repatriated Income | All PEs in Tanzania |
| 5% | Mining/Oil/Gas Service Providers | Applied on turnover, not profits |
Assessment Basis and Applicability
The assessment of corporate tax in Tanzania is based on company profits. There are no progressive brackets for the main CIT; it is a flat tax regime per the current corporate regulations. Official information regarding possible minimum or maximum holding periods for eligibility to preferred rates is not currently disclosed by Tanzanian sources.
Pro Tips for Managing Corporate Tax in Tanzania
- Review your business structure annually to check if you qualify for any reduced rates—especially if your company is new, newly listed, or engaged in eligible manufacturing or assembly.
- Keep detailed loss records, as the AMT may apply if your corporate losses extend over several years; seek exemption if you operate in agriculture, education, or healthcare.
- Service providers to mining, oil, and gas should factor the 5% turnover tax into their pricing and service contracts from day one.
- Permanent establishments should plan for the additional 5% tax on any profits to be repatriated abroad, impacting overall remittance strategies.
- Stay updated with the Tanzania Revenue Authority for any regulatory changes, as the government periodically revises qualifying sectors and rates.
Key Considerations for Businesses
Tanzania’s corporate tax system in 2025 maintains a 30% flat rate but provides strategic concessions for certain sectors and newly established businesses. Special rates for public listings, manufacturing, and assembly emphasize the government’s focus on encouraging domestic growth in select industries. Careful attention is warranted for companies experiencing losses and those repatriating income or providing services to resource-focused industries. For authoritative updates and compliance guidance, always consult the Tanzania Revenue Authority main site.