What Tanzanian Businesses Must Know
As part of Tanzania’s 2025 fiscal policy, the Tanzania Revenue Authority (TRA) has introduced a range of new tax rates and incentives aimed at promoting investment, boosting job creation, and supporting priority sectors such as agriculture, manufacturing, technology, and renewable energy.
At Basil & Alred, we help businesses like yours navigate these changes effectively, ensuring compliance while maximizing savings and strategic advantage.
Key Updates to Tax Rates
Corporate Income Tax
The standard corporate tax rate remains at 30%.
A reduced rate of 25% is applicable for newly listed companies on the Dar es Salaam Stock Exchange (DSE) for the first three years.
Companies investing in agro-processing and manufacturing may benefit from sector-specific reduced rates under investment promotion policies.
Small Business Presumptive Tax (SMEs)
Revised presumptive tax brackets now apply to small businesses with annual turnover below TZS 100 million, Businesses that maintain proper records benefit from lower tax rates and simplified compliance.
Personal Income Tax (PIT)
The PAYE (Pay As You Earn) brackets have been slightly adjusted to relieve lower and middle-income earners. Pensioners receiving monthly pensions below the new threshold continue to enjoy tax exemptions.
Withholding Taxes
Withholding tax on interest and dividends for non-residents has been revised to align with regional agreements. Expanded application of withholding on professional fees and rental income to improve tax compliance.
TRA-Approved Incentives for 2025.
Investment Tax Credits
Investors in renewable energy, ICT, special economic zones, and agro-processing are eligible for investment allowances and accelerated depreciation on qualifying assets.
Export Incentives
ax holidays and VAT exemptions available for firms engaged in non-traditional exports, particularly agricultural products and light manufacturing.
Start-Up & Innovation Relief
Registered start-ups and businesses in technology and innovation hubs may qualify for corporate tax exemptions for up to three years, subject to regulatory approval.
VAT Incentives
VAT exemptions expanded to include:
- Selected agricultural inputs (fertilizers, seeds, equipment)
- Educational and medical supplies
- Solar energy products and components
So, What Should Businesses do to take advantage of TRA tax structure?
- Review your tax strategy for alignment with current incentives.
- Ensure your financial records and accounting practices meet TRA’s compliance standards.
- Apply for incentives proactively through proper documentation and advisory support.
- Stay updated on TRA circulars and public rulings to remain fully informed.
How We Support You?
Basil & Alred we can help you to do
- Tax planning and impact analysis
- Assistance with incentive applications to TIC/TRA
- Small business tax support and presumptive tax filing
- Compliance checks and audit readiness
The 2025 TRA tax changes reflect Tanzania’s push to build a competitive, inclusive, and investment-friendly economy. With the right approach, businesses can unlock new value while staying fully compliant with tax regulations.