Employer Tax Contributions

Tax Type	Rate	Base
PAYE (Pay As You Earn)	Progressive rates (e.g., 0% to 30%)	Employee's taxable income
Social Security (NSSF for Private Sector)	10% (employer portion)	Employee's remuneration/gross pay
Skills and Development Levy (SDL)	3.5% (for employers with ≥10 employees)	Gross cash emoluments of employees
Workers Compensation Fund (WCF)	0.5% (private sector), 0.5% (public sector)	Total employee earnings/cash sums paid to employees

Filing & Compliance

• Monthly Deadlines: PAYE, SDL, and other withholding taxes are due on or before the 7th day of the month following the payroll month. Social security contributions are due by the 15th of each month. WCF contributions are due on or before the last working day of the month after the end of the month to which the contribution relates.
• Monthly Returns: Employers must submit monthly returns for PAYE, SDL, and WHT to the Tanzania Revenue Authority (TRA).
• Annual Returns: Employers are required to file an annual PAYE return summarizing emoluments and PAYE withheld for each employee. An annual WCF return should be filed by March 31st.

Income Tax Brackets

Income Range (TZS Monthly)	Tax Rate
0 – 270,000	0%
270,001 – 520,000	8%
520,001 – 760,000	20%
Over 1,000,000	30%

Non-resident individuals are taxed at a flat rate of 15% on employment income.

Employee Contributions

Deduction Type	Rate	Cap
Social Security (NSSF/PSSSF)	5% (employee share)	No specific cap mentioned, based on monthly salary
Skills and Development Levy (SDL)	3.5% (employer cost, not employee deduction)	Not applicable to employee

Personal Allowances

• No general personal allowances are available.
• The first TZS 270,000 of monthly income is tax-free for residents.
• Statutory social security contributions are deductible from employment income.