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Tanzania is a nation in East Africa that is part of the African Great Lakes area. Its official name is the United Republic of Tanzania (Swahili: Jamhuri ya Muungano wa Tanzania). It is bounded to the north by Uganda, to the northeast by Kenya, to the east by the Comoro Islands and the Indian Ocean, to the south by Mozambique and Malawi, to the southwest by Zambia, and to the west by Rwanda, Burundi, and the Democratic Republic of the Congo. Mount Kilimanjaro, Africa's tallest peak, is located in northeastern Tanzania.
Many notable hominid fossils, including 6-million-year-old Pliocene hominid fossils, have been discovered in Tanzania. Between 4 and 2 million years ago, the genus Australopithecus roamed Africa, and the earliest remnants of the species Homo are located near Lake Olduvai. Following the 1.8 million-year-old ascent of Homo erectus, humans expanded over the Old World, and subsequently in the New World and Australia under the species Homo sapiens. H. sapiens also conquered Africa and assimilated the previous human species.
Later in the Stone and Bronze Ages, prehistoric migrations into Tanzania included Southern Cushitic speakers who moved south from present-day Ethiopia; Eastern Cushitic people who moved north of Lake Turkana between 2,000 and 4,000 years ago; and the Southern Nilotes, including the Datoog, who originated between 2,900 and 2,400 years ago from the present-day South Sudan–Ethiopia border region. These travels occurred about the same time when the Mashariki Bantu from West Africa settled in the Lake Victoria and Lake Tanganyika basins. Between 2,300 and 1,700 years ago, they spread over the remainder of Tanzania.
German authority in mainland Tanzania started in the late nineteenth century, when Germany established German East Africa. After World War I, this was replaced by British control. Tanganyika administered the continent, but the Zanzibar Archipelago remained a distinct colonial administration. Following achieving independence in 1961 and 1963, respectively, the two countries joined in 1964 to establish the United Republic of Tanzania. Tanzania joined the British Commonwealth in 1961 and is today a member of the Commonwealth as a single country.
Tanzania's population was estimated by the United Nations to be 56.31 million people, making it the second-most populated nation wholly south of the Equator. The population is made up of around 120 ethnic, linguistic, and religious groups. Tanzania is a presidential constitutional republic, and its formal capital city has been Dodoma since 1996, where the president's office, the National Assembly, and other government departments are situated. Dar es Salaam, the historic capital, still houses the majority of government offices and is the country's biggest metropolis, main port, and key commercial center. Tanzania is a one-party state in practice, with the democratic socialist Chama Cha Mapinduzi party ruling.
Tanzania is steep and thickly wooded in the north-east, which is home to Mount Kilimanjaro. Tanzania is home to three of Africa's Great Lakes. Lake Victoria, Africa's biggest lake, and Lake Tanganyika, the continent's deepest lake, are located to the north and west, respectively. Lake Malawi is located to the south. With the Zanzibar Archipelago immediately offshore, the eastern coast is hot and humid. The Menai Bay Conservation Area is the biggest marine protected area in Zanzibar. The Kalambo Falls, situated on the Kalambo River near the Zambian border, is Africa's second-highest continuous cascade.
Tanzania's biggest religion is Christianity, however there are significant Muslim and Animist minority. Tanzania has over 100 distinct languages, making it the most linguistically varied nation in East Africa. Although Swahili is the national language, there is no de jure official language in the country. Swahili is used in legislative discussion, lower courts, and as a basic school medium of teaching. Although the Tanzanian government intends to remove English as the major language of teaching, it will be accessible as an optional subject in secondary and higher education. Swahili is spoken as a primary language by around 10% of Tanzanians and as a second language by up to 90%.
Employees are entitled to 28 days of vacation each year. Annual leave must be taken within six months of the leave cycle, or within a year if essential for the running of the firm and the employee consents.
The United Republic of Tanzania recognizes 17 national public holidays.
Employees get a yearly sick leave allowance of 126 days. Employees receive full pay for the 63 days of paid leave and half pay for the remaining days.
Female employees receive 84 days of paid maternity leave every 36 months (leave cycle) or 100 days of paid maternity leave if they have two or more children.
Male employees receive three days of paternity leave.
Apart from maternity and paternity leave, there is no parental leave.
In Tanzania, the employer or employee may cancel the employment contract at the end of the contract with the approval of the parties. Employers must have a legitimate justification for terminating an employee's employment contract. Employee malfeasance, incapacity, incompatibility, or operational necessity are all valid grounds. Employers must provide advance notice of termination to employees.
The notice period is four to twenty-eight days.
The Employment and Labor Relations Act 2004 makes no explicit reference to probationary periods. However, this act implies a six-month probationary period by prohibiting an employee with less than six months of employment from bringing an unfair termination claim against the employer.
Severance pay must be at least equal to seven days' basic wage for each year worked, up to a maximum of ten years.
A typical workweek is 45 hours long, or up to 9 hours per day. Employees in Tanzania may be required to work six days a week.
Overtime must be agreed upon between the employee and the employer, but the total number of hours worked per day cannot exceed 12. Additionally, overtime is limited to 50 hours over a four-week period and is compensated at a rate of at least 150% of the regular pay rate. On public holidays, employees are paid at a rate of 200 percent of their regular rate.
The monthly minimum pay varies by sector, ranging from 40,000 TZS for domestic employees to 400,000 TZS for industries like as finance, telecommunications, and multinational corporations.
Tanzania has public healthcare, although private treatment is advised.
After working for at least six months, all workers are entitled to at least 28 consecutive days of yearly leave, including time off for Tanzania's official holidays. Tanzania has a robust sick leave policy as well. Employees should be entitled to at least 126 days of sick leave, with 63 days paid at full pay and the remaining 63 paid at half wage.
Employees who are female have the entitlement to at least 12 weeks of maternity leave. They must, however, notify you as the employer and submit a medical certificate at least three months before they are scheduled to take the vacation. Employees are not permitted to return to work for at least six weeks after the birth of a child unless approved by a doctor.
Tanzanian residents are taxed on their global income, regardless of where it comes from. Non-residents are taxed on income earned in Tanzania.
Income tax is levied at a rate of 30% on the income of a resident company and a non-resident business's permanent establishment (PE), or 5% of turnover for technical and managerial service providers to mining, oil, and gas companies (deducted by way of WHT). Certain payments to non-residents are taxed at the applicable non-resident WHT rates.
Gain from the sale of assets in Tanzania is subject to income tax if the investments fall under the source regulations; in this instance, the gain is taxed at a rate of 30%.
Individuals residing in Tanzania (other than short-term residents) must pay income tax on their global earnings. Non-residents and ‘short-term residents' are taxed on income earned in Tanzania.
Personal services have a Tanzanian source if they are I conducted in Tanzania or (ii) performed outside of Tanzania but paid for by the Tanzanian government.
For a taxable income between 0 and TZS 270,000, the tax rate is 0.
For a taxable income between TZS 270,000 and TZS 520,000, the tax rate is 8 percent.
For a taxable income between TZS 520,000 and TZS 760,000, the tax rate is 20 percent.
For a taxable income between TZS 760,000 and TZS 1,000,000, the tax rate is 25 percent.
For a taxable income of over TZS 1,000,000, the tax rate is 30 percent.
VAT is levied on all taxable goods and services sold or imported into the United Republic of Tanzania. The normal VAT rate in Tanzania is 18% in Mainland Tanzania and 15% in Tanzania Zanzibar, although exports of products and some services are eligible for zero rating. In general, companies having or intending to produce an annual taxable turnover of more than TZS 100 million in Mainland Tanzania and TZS 50 million in Tanzania Zanzibar must register for VAT. The Commissioner has the authority to register (as intended merchants) investors whose projects have not yet begun producing taxable supply but who want to be VAT-registered in order to recover the tax they pay on start-up expenses. A company that exclusively produces exempt supplies is unable to register for VAT and, as a result, cannot recoup the VAT paid on inputs.
A work permit and a residency permit are required to work in Tanzania as a third-party national.
Third-party national personnel seeking to invest in industry, mining, forestry, social services, and business are eligible for Class A visas.
Class B visas are for foreigners with a desired profession who are employed by a corporation or institution.
Class C visas are issued to missionaries, students, and volunteers.
Application for a residence permit must be made via the Directory of Immigration Services.
The application for employment in Tanzania is filed by the employer. A completed application form, a copy of your passport, passport images, evidence of your bank account details, a signed job contract, a copy of your curriculum vitae, and your academic records.
Once everything has been filed and the application cost has been paid, the visa application procedure might take up to two months.
Employment contracts in Tanzania may be either written or verbal, however a formal employment contract outlining the terms and conditions of employment is preferred. A written employment contract should contain the following clauses:
The employer and employee's names
Place of employment or where the job will be done
A description of the tasks that must be completed
Start date of employment
Contract phrase (if for a fixed-term)
Work hours and days
Details on pay
Vacation and other leave entitlements
Other advantages and conditions agreed upon by the parties
There is no set length for assignments. This is usually indicated in the employment contract for fixed-term employments.
Tanzania just made it simpler for businesses to understand how to establish a Tanzania subsidiary. There are no longer any requirements for inspections by health, municipal, or land inspectors prior to getting a business license. Despite these developments, corporations are still finding it difficult to join the market due to endemic corruption. Some of the most corrupt areas include government, land administration, taxes, and customs.
The first step in creating a subsidiary is determining the optimum sort of business for your purposes. Tanzanian law allows for a variety of structures, but the four most common are a private limited liability company (LLC), a public business, a branch, and a representative office. Greatest businesses choose to incorporate as an LLC because it allows them the most flexibility to operate in the nation with the most flexible regulations.
Setting up your Tanzania subsidiary as an LLC entails the following steps:
1. Submitting a firm name application to the BRELA agency
2. Notarizing a compliance statement
3. Submitting a firm incorporation application
4. Obtaining a taxpayer identity number from the Tanzania Revenue Authority (TIN)
5. Submitting a business license application
6. Submitting a VAT application
7. Enrolling in workers' compensation insurance
8. Applying for Social Security
Once you've formed an LLC, you'll need to ensure that you follow the Tanzania subsidiary laws that apply to that company. You must, for example, designate at least two directors and two stockholders of any country. Tanzania has no minimum paid-up share capital requirement, which might enable firms register more quickly.
Each year, you must submit audited financial accounts to the Business Registrations and Licensing Agency (BRELA). Unless your yearly sales are less than $45,000, you must additionally register for VAT.