Tanzania

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 remuneration; however, the employer is entitled to recover up to half of this from the employee.

Similar contribution rates (20%) apply to the Public Service Social Security Fund (PSSSF) scheme, which is a special fund for the employer and employees in the public sector; however, the employer is entitled to recover up to 5% from the employee.

Consumption taxes

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 3.5% 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 0.5%. Employers are also required to file a monthly return form.

Property taxes

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 18,000 for a normal building and TZS 90,000 per storey for a storey building.