Tanzania
Tanzania provides foreign investors with a significant opportunity to invest in an expanding African economy. The government welcomes inward investment, with some restrictions upon entity structures.
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Our free global insight guide to Tanzania offers up-to-date information on international payroll, income tax, social security, employment law, employee benefits, visas, work permits and key updates on legislative changes and more in 2024. Our guide to Tanzania 2024 is currently being updated and will be published soon.
Basic Facts about Tanzania
General Information
- Full Name: United Republic of Tanzania
- Population: 58.01 million (World Bank, 2019)
- Capital: Dodoma (official), Dar es Salaam (commercial)
- Primary Language: English, Swahili
- Main Religion: Christianity, Islam
- Monetary Unit: 1 Tanzanian shilling = 100 cents
- Main Exports: Gold, Sisal, cloves, coffee, cotton, cashew nuts, minerals, tobacco.
- GNI per Capita: US $1,080 (World Bank, 2019)
- Internet Domain: .tz
- International Dialing Code: +255
How Do I Say?
- Hello: hujambo
- Good morning: nzuriasubuhi
- Good evening: mema jioni
- Do you speak English?: Jekuzungumza Kiingereza?
- Goodbye: kwaheri
- Thank you: asante
- See you later: kuonawewebaadaye
Dates
Dates are usually written in the day, month and year sequence. For example: 1st of July 2019 or 1/7/19.
Numbers are written with a comma to denote thousands and a period to denote fractions. For example, TZS 3,000.50 (three thousand shillings and fifty cents).
Foreign Direct Investment in Tanzania
Tanzania provides foreign investors with a significant opportunity to invest in an expanding African economy. The government welcomes inward investment, with some restrictions upon entity structures.
Business Banking in Tanzania
It is not mandatory to make payments to employees and authorities from an in-country bank account, however, the inter-country bank charges for electronic transfers can be quite high.
Registering a Company and Establishing an Entity in Tanzania
This information is currently being updated for 2024.
In Tanzania, all companies must be registered with local authorities in order to process payroll.
Income Tax in Tanzania
The tax year runs from 1st July to 30th June.
This information is currently being updated for 2024.
Apprenticeship and Training Tax in Tanzania
The due date for remitting PAYE is by the seventh of the following month.
A PAYE summary statement is due within 30 days after each six-month period.
The penalty for late payment is the statutory rate of the year + 5% of the total outstanding amount.
Social Security in Tanzania
This information is currently being updated for 2024.
NSSF (National Social Security Fund) is deductible from employees (10% of gross) with the employer paying the same amount on the employee’s behalf. Submissions to the NSSF authority are to be made within one month after the month of deduction.
Skills Levy: Employer is to pay 4% of the gross on behalf of the employee (only for a company with more than five employees).
New Employees in Tanzania
This information is currently being updated for 2024.
When an employee first starts employment with a company, they must be registered with the TRA (Tanzania Revenue Authority) and the pension scheme.
TRA will provide a TIN (Tax Identification Number) and the pension scheme will also provide a scheme number. All registrations must be made within the first month for the new start commencing work.
The only information that is required for setting up a new start is the employee’s personal data.
A new employee must be registered with the authorities within 80 days from the start date of employment, in which the company has to present its structure to the SII and await authorization to start operations.
The following information is required to set up a new start: -
- Full name
- RUT
- Date of birth
- Address
- Salary
- Pension insurance
- Health insurance
- Other information about hiring
Leavers in Tanzania
This information is currently being updated for 2024.
There are no legislative timescales for an employee’s final payment in Tanzania.
The payment timescale will depend on the terms of the employment contract.
Payroll in Tanzania
This information is currently being updated for 2024.
It is legally acceptable in Tanzania to provide employees with online payslips. The payslips must be secured with restricted access.
By law, payroll reports must be kept for seven years.
Working Days and Working Hours in Tanzania
This information is currently being updated for 2024.
The working week in Tanzania is Monday to Friday 0800 – 1700 hours and Saturdays 0800 – 1230 hours. Lunch breaks are between half an hour and one hour long.
Notes
Please note that this document gives general guidance only and should not be regarded as an authoritative or complete statement of the law, regulations or tax position in any country. You should always seek specific advice for each specific situation. This document should not be relied upon as professional advice and activpayroll accepts no liability for reliance on its contents.
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