GROW YOUR BUSINESS IN TANZANIA
Have an enterprise level payroll department and a HRMS with Employee Self-Service at a per employee cost
Praxima Services Includes
Full Payroll Outsourcing
Hybrid Payroll Outsource
International Payment Management
Social Security Filing
Interact with Local Authorities
Human Resources Management System
Integration with all Accounting and Third Party
Benefits of outsourcing to Praxima
Local Tax Compliance
Secure Data Transferring
Running Your Payroll
Focus on Your
Outsource your Tanzanian payroll to Praxima
Payroll in Tanzania
Individuals resident in Tanzania, other than short-term residents are taxed on their worldwide income. Short-term and non-residents are taxed on their income derived from a Tanzanian source. Personal services have a Tanzanian source if the services are performed in Tanzania or outside of Tanzania if the employer of the government of Tanzania.
TAX RATES | 2018 / 2019
Taxable income in Tanzanian Shilling (TZS)
0 – 170 000 0%
170 001 – 360 000 9%
360 001 – 540 000 17 100 + 20% of the
excess over 360 00
540 001 – 720 000 53 100 + 25% of the
excess over 540 000
Above 720 000 98 100 + 30% of the
excess over 720 000
STATUTORY FILING | 2018 / 2019
A tax year in Tanzania is a calendar year. By the 31st of March of each year an estimated income tax return along with payment of the first installment for self-assessed income tax becomes due. Additional installments of income tax becomes due by 30 June, 30 September and 31 December. On 30 June of the following year, a final return and payment of income tax becomes due. Withholding taxes must be paid within the first seven days of the following month.
STATUTORY FILING | 2018 / 2019
The employer and employee are obligated to contribute 10% each of the employees’ gross salary to any of the approved retirement funds. A similar contribution rates apply to other schemes such as the Parastatal Pension Funds (PPF), however in the latter the employer contributes 15% and the employee 5%. A Skills and Development Levy is payable by the employer at a rate of 4.5% of the employee’s remuneration.
Since the beginning of July 2017 the following education institutions have been exempted from paying skills and development levy:
Nursery, primary and secondary schools
Vocational, educational and training schools
Universities and higher education institutions.
The employers are also to pay an additional 0.5% or 1% of the total remuneration for public and private employers, respectively, to the Workers Compensation Fund.
An individual will be considered a resident for tax purposes if he/she has a permanent place of dwelling in Senegal, or his/her center of interest is located in Senegal, or lastly, if the individual is present in the country for more than 183 days over any 365-day period. Residents are taxed on their worldwide income while non-residents will only be taxed on their Senegal-source income.
All sources of income, such as wages, salaries, commercial or non-commercial activities and proceeds from agricultural are considered taxable income. Benefits-in-kind are taxable in accordance with the sales published by the tax administrator or in accordance with their fair market value.
Diplomats and foreign consular agents will be exempt from tax on their income earned while exercising their diplomatic or consular functions, if their countries provides the same benefits to Senegal diplomatic and consular staff present.
Your HRMS is Standard
PAYMENTS, REPORTING & FILING
Direct payment into employee bank accounts. Emailed password protected pay slips.
Payment of taxes, benefit providers and other creditors.
Filing of returns to the authorities.
Generation and filing of statutory reports.
General ledger and 100's of customisable reports.