KEY PAYROLL REGULATORY REQUIREMENTS IN TANZANIA

Tanzania is a Member of the East Africa Community that includes Kenya, Uganda Tanzania and Rwanda

Any Employer is required to be registered as an employer with the following statutory bodies

1. For a start for the business to exist the business must be registered as a Sole Proprietor, Partnership or Company with Business Registrations and Licensing Agency (BRELA).
2. Register as a tax payer with Tanzania Revenue Authority (TRA)

Under the relevant law employers are required to deduct pay as you earn tax (PAYE) and remit to TRA by 7^th of subsequent month. The lowest tax bracket in Tanzania is taxed at 10% while highest. Employers are also expected to contribute 4.5% if fixed monthly pay for each employee for the skills development levy (SDL) collected by TRA and Managed by the Vocation Education and Training Authority (VETA). Unlike in other countries SDL is not available to employers for on job training.

The minimum taxable income is shillings 170,000 with lowest tax bracket being taxed at 9% and highest tax bracket at 30%

3. Have a Business License issued by a Local Authority in the district of operation
4. Register with a Pension Fund as an employer. All private entities are required to register with National Social Security Fund (NSSF) and not any other fund as per the Pension Act Amendment of 2018.

Both employee and employer contribute 10% of fixed monthly pay including allowances to a pension fund by 30^th of the subsequent month

5. Register as an employer with the Workers Compensation Fund (WCF) Managed by the Ministry of Labour.

Private sector employers and NGOs that are not exempt are required to contribute 1% of employee fixed monthly income. The fund covers cost of medical care and compensation for disability and death arising from occupational accidents.

WCF is payable by 3th of subsequent month

Career Options Africa is a Recruitment, Payroll and HR outsourcing Agency operating in 4 Countries in East Africa i.e. Kenya Uganda Tanzania and Rwanda. Our offices are found in Nairobi. Arusha, Dar es Salaam, Kampala and Kigali

We offer the following payroll services in Tanzania

1. Full payroll services

We prepare payroll for client approval, invoice the client and upon receiving funds pay the Employee and statutory bodies

2. Partial Payroll Service

WE prepare the payroll for client approval and if required pay statutory deductions. In this category Client pays the employee

3. Statutory deductions remittances