Employment law in Tanzania appears complex and confusing when looking from outside view although in some ways there are many similarities to other countries. Other factors that complicate matters include the differences between regions and an inconsistent approach to adherence to laws in different cities.
For these and many other reasons the following are only guidelines in the broadest sense, and professional legal services are recommended when employing in Tanzania.
In 2015, Tanzania made paying taxes more complicated for companies by introducing an excise tax on money transfers. On the other hand, it made paying taxes less costly by reducing the rate of the skill and development levy.
Foreign workers are required to have the proper visas and work permits in Tanzania, as established by immigration laws. Work permits must be secured for employees, and sponsored by a locally licensed and incorporated entity, which can be a problem for companies just entering the Tanzanian market. If you have yet to complete the incorporation process you can use an outsourced management company or GEO to sponsor the employee for the necessary permits.
The legislation in Tanzania provides for rather wide range of organizational forms of business entities. Sole Proprietorship, Private Limited liability companies (LLCs), Public Limited liability companies, Partnerships and Branches and representative offices are the most popular.
GEO Solutions or DIY Employment
Companies entering Tanzania must make a decision whether to use their own resources for a Do-It-Yourself (DIY) approach, or to use a Global Employment Organization to handle payroll and employment responsibilities. A GEO or Tanzania Employer of Record solution makes it faster, easier and cheaper to deploy staff if they don’t have a Tanzanian entity established that can run payroll.
A DIY approach will typically take 6-9 months until there is a properly incorporated WFOE ready to run payroll and cost up to 6 figures if registered capital is required. Shield GEO can deploy foreign staff in 4-6 weeks and local staff in 48 hours. Additionally, Shield GEO is responsible for all compliance issues related to the employment.
|Management Fee for Employer of Record Services / Monthly Payroll Costs||
Please contact us for a quote
Shield GEO pays the employee on a monthly basis, typically on the last working day of the month although we can adapt to your preferred schedule. Income tax and social security (where applicable) are deducted at source and paid to the local tax authorities.
|Tax Returns Supplied||
Yes, Shield GEO can organise tax returns in Tanzania.
|Corporate Income Tax Rate||
30% on taxable profits
10% on interest income
Property Tax: 0.15%, calculated on property annual average net book value.
|Work Permit cost||
Please contact us for a personalised quote.