This Practice Note provides guidelines and clarification from TRA on the extent of the application of withholding tax on service fee payments to resident persons.

Find attached Practice Note No.1 of 2013 issued by the TRA – Domestic Revenue Department. The Practice Note provides guidance on the provisions of the Tanzanian Income Tax Act (“ITA”)relating to application of withholding tax on payments for service fees made to a resident person. This is based on the changes to the ITA contained in the Finance Act 2013, which introduced withholding tax on service fee payments made to resident persons. The Practice Note provides details of the applicable services, exempt services and administrative requirements.

Attachment: TRA_Practice_Note_-_WHT_on_service_fees_to_residents