Tanzania Employer of Record & Payroll
Africa Deployments Tanzania offers our clients Africa Employer of Record solutions in Tanzania covering all of the regions within. We offer full-time employment or fixed terms contracts based on your requirements in Tanzania for local & expatriate hires. ADS will apply for the work permits through our umbrella company and issue local work contracts to your contractors. We will also advise our client’s on the best Human Resource (HR) practices when setting up employee’s locally in Tanzania.
ADS takes care of the local tax & PAYE remittances to the Revenue Services on a monthly basis ensuring that they are fully compliant with the law. We will also ensure that their salaries are paid on time monthly and issue them with their pay slips.
In addition to our services we can offer you the employee in Tanzania, Medical, Disability, Life, and Workmen’s Compensation Insurances.
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What income is Taxable?
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What type of Leaves is allowed?
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What income is exempted?
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Can you give fringe benefits?
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What are the employer & Employee contributions?
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Is there Gratuity Payments for Termination?
What income is Taxable?
Residents are subject to income tax on worldwide income. Non-residents are subject to tax on Tanzania-source income only.
All expatriates are required to pay tax on income earned in Tanzania, except for those who enter the country under special agreements with the government.
Individuals are considered residents if they meet any of the following conditions:
- They are present for 183 days or more in the year of income.
- They are present for an average of 122 days or more in the year of income and in each of the two preceding years of income.
- They have a permanent home in Tanzania and are present for any length of time during the year of income.
- They are employees or officials of the government of Tanzania and are posted abroad during the year of income
What type of leaves is allowed?
- Annual leave – not less than 28 consecutive days during one leave cycle of 12 months of consecutive employment. This leave is inclusive of public holidays
- Sick leave – employee is entitled to 126 days during one leave cycle. Medical certificate must be provided.
- Employee is entitled to full wages during the first 63 days of sick leave
- For the second 63 days the employee is entitled to half wages
- Maternity leave – entitled to 84 days during one leave cycle. Where the employee is breastfeeding the employer must allow time off not exceeding two hours to feed the baby during working hours.
- Paternity Leave – male employee is entitled to 3 paid days of leave in one leave cycle
- Compassionate leave – Employee is entitled to 4 paid days of leave in one leave cycle in the event of death or sickness of the employee’s child, spouse, parent, grandparent, grandchild, or sibling.
What income is exempted?
- Traveling costs if the employee and family are domiciled more than 20 miles from their employment
- Café services on the business premises
- Contributions to an approved pension and provident fund
- Medical services
- Traveling, entertainment or other allowances with respect to business activities.
- Motor vehicle allowances for ownership, maintenance or operations of the vehicle
- Housing, transport, responsibility, extra duty, hardship allowances and honoraria payable to an employee of the Government.
Can you give fringe benefits?
These are non-cash benefits which employee may enjoy from the employer. Benefits in kind are quantified by the prescribed rules and included into taxable income of an employee.
- Housing allowance
- Provision of Motor vehicle
- Provision of loan to employee
What are the employer & Employee contributions?
- Employee PAYE tax progressively up to 30% monthly
- Social Security & Pension Funds – Two various entities
- The Public Service Social Security Fund (PSSSF) – public workforce
- The National Social Security Fund (NSSF) – private sector workforce
- PSSSF contributions 15% by Employer and 5% by Employee
- NSSF contributions equal contributions by Employer & Employee eg. 10% each
- Skills Development Levy (SDL) 4% of total emoluments paid to the employee. Any employer who employs four or more employees is liable for this amount.
- Workers Compensation Fund (WCF)
- 1% of employers wage bill for employees in the private sector
- 5% of the employers wage bill for employees in the public sector
- National Health Insurance Fund (NHIF) – Employer 3% & Employee 3% of the monthly salary
Is there Gratuity Payments for Termination?
Severance is a simple calculation and is calculated at 7 days of pay for each year of service up to a maximum of 10 years of continuous employment with the same employer.
WHAT DOUBLE TAX TREATIES ARE IN PLACE:
Get in touch with one of our consultants should you have any further questions regarding our Tanzania Employer of record solutions or only require a payroll solution in Tanzania.
