Looking for information about New rental house tax ? If so then here is what we know so far about this new Kodi Ya Pango Nyumba Za Kupanga announced by Tanzania Revenue Authority.
TRA has announced a new tax that will be issued by the owners of rented houses known as “Baba wa Nyumba”. This charge has become one of several charges that have been announced recently and have sparked various discussions on social networks. This means if you live in Tanzania and earn your income by renting out property, you may have to pay taxes on that rental income.
What Is Kodi Ya Pango Nyumba Za Kupanga
Kodi Ya Pango Nyumba Za Kupanga is a Withholding tax charged to the landlords as part of the contribution to support nation-building activities in accordance with the rules and laws of the country.
Withholding tax is the amount of tax retained by one person when making payments to another person for goods supplied or services rendered by the payee. A withholdee is someone who receives or is entitled to receive a payment from which income tax is required to be withheld, while a withholding agent is someone who is required to withhold income tax from a payment made to a withholdee.
“Kodi Ya Pango ” will be paid as withholding tax from the income of the Rental house at 10 percent. As a result, Baba Mwenye Nyumba will now be required to pay the TRA 10% of the rent as part of the rent income tax. You can check the table below to understand more how this Tax will be charged.