For the withholding tax mechanism to apply in Tanzania, following boxes have to be ticked: there must be income derived from a source that is subject to income tax as provided for in the income tax legislation (i.e. income from royalty, rental, lease, service fees, interest, dividend etc); the income must be sourced from Tanzania; and, there must be payment being made to recipient of that income from a resident person who become an involuntary tax agent for the Commissioner under the withholding tax mechanism. The resident person is required to withholding the appropriate amount of the tax from the payment that he is making in relation to royalty, rental, lease, service fees, interest, dividend etc. and account for that tax to the Commissioner.

Please see full Publication below for more information.