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Tanzania

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GENERAL INFORMATION

Capital City

Dodoma (de jure)

Dar es Salaam (de facto)

Official Language

Swahili

Currency

Tanzania Shilling (TZS)

Dialling Code

+255

Tax Authority

Tanzania Revenue Authority – TRA

www.tra.go.tz

Tax Year

1 January – 31 December

Time Zone

East Africa Time Zone (UTC +03:00)

 

IMMIGRATIONS

Employ Africa can you support your immigration requirements in Tanzania through our in-country immigration specialist based in Dar es Salaam.

Any person who wishes to employ or engage a non-citizen in any occupation shall apply for a work permit to the Labor Commissioner at Ministry of Labour prior to the entry by that non-citizen, either the employed foreigners are obliged to submit applications for Residence Permit to immigration service department after being awarded a work permit.

Normally, work permits process takes not later than five months for the first request. Non-citizen are encouraged to start the process before they enter Tanzania.

WORK PERMIT

There are 2 Categories of Work Permits that are applicable;

Class “B” for a non- citizen who is possession of a prescribed profession.

Class “C” for non-citizen who is in possession of such other profession.

Documents that are required for Work Permit applications are;

  1. Justification letter/Covering letter providing a statement
  2. Contract of Employment/Engagement
  3. Job Description
  4. Application form TFN 901
  5. Passport Size Photograph
  6. Copy of a Valid Passport
  7. Academic Certificates/Professional Certificate (If not in English attach Official Translation)
  8. Accreditation from respective professional bodies (Eng NBAA, ERB, TCCIA, PHARMACY, MCT, TRA etc.)
  9. Memorandum and articles of Association/Extract from Register/ Constitution.
  10. Certificate of Incorporation
  11. Business/Industrial/Operating License
  12. Lease Agreement/Title Deed
  13. Certificate of Incentive (If any)
  14. Succession Plan

NB: All documents must be certified.

Fees for work permit application depend on Class of Work Permit Applied for;

Class B    USD 500 (Professionals in Oil and Gas)

Class C     USD 1000 (Others)

Therefore a total fee would be; Class B or C plus our service fee.

SPECIAL PASS

Turnaround time – approximately 2 weeks from submission to issuance.

What documents are required?

  1. A copy of passport
  2. Passport Size
  3. Letter from a Host Company
  4. Company documents e.g.; Business License, Tax Clearance
  5. Form to be filled at Immigration Offices.

This pass is requested at Immigration Department whereby it is issued to a foreigner living in or entering The United Republic of Tanzania in order to afford him an opportunity to apply for and obtain a residence permit or Pass or complete any immigration formality.

The Government fee for a 3 month special pass is USD 600.

Therefore a total fee would be; government fee plus the service fee.

 

PAYROLL & TAX COMPLIANCE

Employ Africa can you support the Payroll & Tax Compliance of all your expatriate and local Staff & Contractors in Tanzania.

Payroll for locals is calculated and paid in Tanzania Shillings

Payroll for expatriate personnel is typically administered in United States Dollars (USD).

For all income derived from carrying out an assignment in Tanzania, income tax is payable to the TRA at the prescribed rates for either resident or Non-resident Employees. Taxes are deducted from the Employee’s salary/wages at source and paid over to the TRA on a Monthly basis in line with the Tanzania tax regulations.

At the end of each tax year, or at the termination of the Employment (Whichever is the earliest) a statement of earnings for the current tax year must be provided to the employee to include with their tax return in their home country.

Payroll Example

Net Day rate USD$ 500 ( x 28 days)
Net Monthly Rate USD$ 14,000
PAYE Income Tax USD$ 5,924
NSSF (EE) USD$ 2,214
Gross Monthly Rate USD$ 22,138
NSSF (ER) USD$ 2,214
WCF (1%) USD$ 243.52
CTC USD$ 24,595.52

 

Gross Day rate USD$ 500 ( x 28 days)
Net Monthly Rate USD$ 8,873.12
PAYE Income Tax USD$ 3,726.88
NSSF (EE) USD$ 1,400.00
Gross Monthly Rate USD$ 14,000.00
NSSF (ER) USD$ 1,400.00
WCF (1%) USD$ 154.00
CTC USD$ 15,554.00

2017 PAYE Rates

Monthly Taxable Pay (TZS) Rate of Tax (%)
Up to 170,000 0
170,000 – 360,000 9
360,001 – 540,000 20
540,001 – 720,000 25
Above 720,001 30

 

NSSF

Monthly employee contribution is 10% of gross pay, as well as the employer contribution is 10% of gross pay. There is no upper limit for either contribution.

WCF

Under the Workers’ Compensation Act, 2008 all employers are required to contribute to the WCF. All private sector employers must now contribute 1%, and public sector employers must contribute 0.5%. Contributions are due on a monthly basis.

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