Income tax on rent, worked example, in Tanzania

August 09, 2016

Non-resident coupleĀ“s rental income1
Monthly Rental Income2 1,500 6,000 12,000
Annual Rental Income 18,000 72,000 144,000
Less Expenses (25%)3 4,500 18,000 36,000
= Taxable Income 15,300 61,200 122,400
Income Tax Rates4
Flat rate 20% 2,700 10,800 21,600
Annual Income Tax Due $2,700 $10,800 $21,600
Tax Due as % of Gross Income 15% 15% 15%


Notes


1 The property is jointly owned by husband and wife.

2 Exchange rate used: 1.00 US$ = 2,115.00 TZS

3 Estimated values. Income-generating expenses are deductible when calculating taxable income.

4 Rental income earned by nonresident individuals is taxed at a flat rate of 20%.

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