A Praxima client operating in Tanzania recently approached our tax manager for information on secondary employment. When employees have more than one employer, they and their employers must follow specific rules outlined under Tanzania’s Income Tax Regulations (Government Notice No. 464 of 5 November 2004). Failure to apply these rules correctly can result in incorrect withholding, compliance discrepancies, and administrative challenges for payroll teams.
Under Regulation 18:
These rules are designed to ensure that the correct tax is withheld across multiple income sources, preventing under-withholding and tax leakage.
“Secondary employers in Tanzania must withhold tax at the highest rate.”Speak to a Specialist
In practice, employees often do not inform the secondary employer of their status. As a result:
This mismatch can lead to compliance delays, and administrative rework.
Employers can take the following proactive steps to mitigate these issues:
These simple steps help ensure accuracy in monthly filings and prevent unexpected PAYE recalculations by the portal.
If this article raised questions or highlighted areas you’d like to understand better, let’s talk.Our team can walk through the details, implications, and practical considerations for your business.
