Tanzania has a population of 59 million people, with key industries including agriculture, mining, and manufacturing. There are several types of company formations in Tanzania, and the corporate tax rates vary based on industry and type of company. The tax year corresponds to the calendar year, and estimated returns are due by March 31 each year.

Labor and Payroll considerations in Tanzania:

  • Minimum wage ranges from 40,000 – 400,000 Tanzanian shillings per month, depending on the employment category and sector
  • Companies must register new employees with the Tanzania Revenue Authority and pension system
  • Tanzania uses a Pay As You Earn (PAYE) income tax system
  • Income tax and social security contributions are withheld from employee pay
  • Foreign workers need a work and residence permit
  • A company must apply for permits on behalf of the foreign worker, and must include a plan to train local workers to perform the job after the foreign worker exits the country

If you are just getting started in Tanzania, or would like to improve current operations there, Blue Marble has created cloud-based technology to manage payroll and compliance. Our easy-to-use technology has customized reporting, so you can view payroll across all countries and currencies. We have a US-based service team and in-country experts to help when questions come up. Learn more about global payroll solutions for your business – click here to get started