Emerging Markets Rates and Currencies Handbook

Tax Summary – Tanzania Tanzania W/H Tax • 10% WHT • Under certain tax treaties can be reduced to 10% • 10% WHT • Under certain tax treaties can be reduced to 10% • Loans financing government projects are exempt from WHT • 10% WHT • Loans financing government projects are exempt from WHT • N/A • 10% WHT for dividends with the following exceptions: • Onshore: From any DSE listed company or to company which has >25% equity: 5% • Offshore: To company which has >25% equity: 10% Deductibility of interests • Interest is deductible on accrual basis • Subject to thin capitalisation rule: for 'exempt-controlled resident entities' where D/E > 7:3 • There are specific definitions of ‘Debt' and ‘Equity' • Transfer pricing rules apply (i.e. arms length rule) • N/A • N/A Deductibility of (FX) Losses • Unrealized losses are not tax deductible until such a time when they are realized • Unrealized losses are not tax deductible until such a time when they are realized • Gains on derivatives are included in investment income and subject to total income taxed at 30% • Unrealized losses are not tax deductible until such a time when they are realized Other Taxes/Duties • N/A • N/A • N/A • N/A • N/A Note: Citigroup Inc. and any of its affiliates do not provide accounting, tax, or legal advice. Please seek advice from a relevant licensed advisor. Source: Relevant legislation, publicly available sources Country Deductibility and Considerations Inter-Co Debt Offshore Bank Loans Offshore Local Borrowing Derivatives Equities