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Employing in Tanzania

At a glance

Employment in Tanzania

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.

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Payroll & Tax 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.

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Immigration / Work Permits in Tanzania

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.

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Incorporation

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.

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GEO Solutions or DIY Employment in Tanzania?

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.

Using Shield GEO Employer of Record Services in Tanzania

Payroll Tanzania
Management Fee for Employer of Record Services / Monthly Payroll Costs

Please contact us for a quote

Notes

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.

 
Grossed income Tax Rate (%)
Up to TZS 1,620,000 0%
TZS 1,620,001 - TZS 4,320,000 14%
TZS 4,320,001 - TZS 6,480,000 20%
TZS 6,480,001 - TZS 8,640,000 25%
Over TZS 8,640,001 30%
Tax Returns Supplied

Yes, Shield GEO can organise tax returns in Tanzania.

Corporate Income Tax Rate

30% on taxable profits

Sales Tax

VAT: 18%

Withholding Tax

10% on interest income

Other Tax

Property Tax: 0.15%, calculated on property annual average net book value.

Work Permits
Work Permit cost

Please contact us for a personalised quote.

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