Tanzania Highlights:
- An entity solution is available via 1WB’s 100% subsidiary company to deploy local and foreign employees in Tanzania and ensuring fully compliance with country’s regulations.
- The whole deployment process for foreigners takes about 3 weeks whereas for locals within 1 week.
- Handling payroll processing, immigration and taxes compliantly, swiftly and cost efficient.
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Income tax is payable by individuals resident in Tanzania (other than short-term residents) on their worldwide income.
Short-term residents and non-residents are taxable on income from a Tanzanian source.
The top marginal rate of tax for resident individuals is 30%.
Tax table for residents of Mainland Tanzania -
| Taxable Income Over (TZS) - column 1 | Taxable income not over (TZS) | Tax on Column 1 (TZS) | Tax on excess % |
|---|---|---|---|
| 0 | 170,000 | - | 0% |
| 170,000 | 360,000 | - | 9% |
| 360,000 | 540,000 | 17,100 | 20% |
| 540,000 | 720,000 | 53,100 | 25% |
| 720,000 | and above | 98,100 | 30% |
- Tax table for residents of Zanzibar -
| Taxable Income Over (TZS) - column 1 | Taxable income not over (TZS) | Tax on Column 1 (TZS) | Tax on excess % |
|---|---|---|---|
| 0 | 180,000 | - | 0% |
| 180,000 | 360,000 | - | 9% |
| 360,000 | 540,000 | 16,200 | 20% |
| 540,000 | 720,000 | 52,000 | 25% |
| 720,000 | and above | 97,200 | 30% |
- Non-resident individuals are subject to tax at a flat rate of 15% on employment income, which is final tax.
- The standard corporation tax rate is 30%.
- Social security contributions -There is a state pension scheme known as the National Social Security Fund (NSSF), which every employer in the private sector must contribute to. The employer’s contribution is 10% and another 10% is paid by the employee. There is also social insurance paid by the employer at 1%.
- Work permit - 1WB can sponsor work permits for foreign employees and the processing time is about 1 month.