In Tanzania the Income Tax Act, 2004 came into effect in July 2004. This act restructured the income tax system in line with modern requirements and repealed the previous Income Tax Act, 1973. Tax is levied on income from employment, income from business and income from investment. Taxable persons include entities and individuals. An entity can be a corporation or a trust, and a corporation is loosely defined to mean any incorporated or unincorporated body of persons or association. For partnerships the individuals within the partnership are taxed on their share of the income. Taxation is on worldwide income for residents (or for individuals, of residents of more than two years) while taxation of non-residents is on Tanzanian source income only. The corporate tax rate is 30%. The individual tax threshold is Tsh 1,200,000 per annum, and the rates are from 15% to a top rate of 30%. Various provisional and final withholding taxes are applied to ease the collection of tax.
Both the Income Tax Act, 2004 itself and a comprehensive interactive guide to income tax for Tanzanian residents is provided on the website of the Ministry of Finance and Economic Affairs of Tanzania (see guide).