Social security contributions
There is a state social security scheme known as the National Social Security Fund (NSSF), which every employer in the private sector must contribute to. The employer’s contribution is 20% of the employee’s cash remuneration; however, the employer is entitled to recover up to half of this from the employee.
Similar contribution rates apply to the Public Service Social Security Fund (PSSSF) scheme, which is a special fund for the employer and employees in the public sector. In the PSSSF scheme, the contribution by employer and employee is 15% and 5%, respectively.
Value-added tax (VAT)
The standard rate of VAT is 18%, but the export of goods and certain services is eligible for zero rating. See the Other taxes section in the Corporate tax summary for more information.
Net wealth/worth taxes
There are no net wealth/worth taxes in Tanzania.
Inheritance, estate, and gift taxes
There are no inheritance, estate, or gift taxes in Tanzania.
Skills and development levy (SDL)
SDL is a tax on the employer calculated as 4% of gross cash emoluments of employees. It is not a tax on the individual, but is a cost that needs to be borne in mind when considering the overall cost of employment of employees. It is only applicable to employers who have a minimum of 10 employees.
The following institutions are exempted from SDL: (i) nursery, primary, and secondary schools; (ii) vocational, educational, and training schools; (iii) universities and higher learning institutions; and (iv) religious health institutions.
Workers compensation fund tariff
Employers are subject to the workers compensation fund tariff. The tariff is payable on a monthly basis and is calculated as a percentage of cash sums paid to employees at 0.6% for the private sector and 0.5% for the public sector. Employers are also required to file a monthly return form.
The property tax rates for valued properties vary depending on the value and location of the property. For unvalued properties, property tax is charged at TZS 10,000 for a normal building and TZS 50,000 per storey for a storey building.