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.

Payroll and Tax Considerations in Tanzania:

  • The current minimum wage is TZS 100,000 in the agriculture sector and TZS 400,000 for other sectors
  • Overtime is paid at 1.5 times the basic wage when performed during the day and an additional 5% is included if the work is performed at night
  • Employees who have worked for a year are entitled to severance pay. They are paid at 7 days basic wage for each year of service
  • If there is no written employment contract, the employer must provide a written statement of employment requirements
  • Income tax rates depend on if an individual or corporation is a resident of mainland Tanzania or Zanzibar
  • Income tax rates are progressive and range from 9-30% for residents and a flat rate of 30% for non-residents
  • Annual income of TZS 3,240,000 or below is not taxable

HR and Statutory Requirements

  • Employees are entitled to 28 days paid annual leave after a year of service
  • Employees are entitled to paid sick leave for 126 days in a leave cycle of 36 months if they present a medical certificate
  • Wages are paid in full for the first 63 days and half for the remaining 63 days
  • Females are entitled to 84 days of paid maternity leave, or 100 days in the case of multiple births. The employee can begin maternity leave 4 weeks before childbirth
  • New fathers are entitled to 3 days paid paternity leave to be taken in the first 7 days of childbirth
  • Tanzania provides a National Social Security Fund for private sector employees
  • Employees can receive social security starting at 55 years old if they have made at least 180 contributions
  • The standard retirement age is 60
  • Public-sector employees are covered under the Public School Social Security Fund. Eligibility conditions and calculations of benefits are the same for private sector employees

Holidays in Tanzania

  • January 1 – New Year’s Day
  • January 12 – Zanzibar Revolution Day
  • April 7 – Karume Day
  • April 15 – Good Friday
  • April 18 – Easter Monday
  • April 26 – Union Day
  • May 1 – Worker’s Day
  • May 3 – Eid el Fitri
  • May 4 – Eid el Fitri Holiday
  • July 7 – Saba Saba
  • July 10 – Eid al-Adha
  • August 8 – Farmers’ Day
  • October 8 – Maulid
  • October 14 – Mwalimu Nyerere Day
  • December 9 – Independence Day
  • December 25 – Christmas Day
  • December 26 – Boxing Day

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