Tanzania is an East African country with a population of over 55 million. The country includes plenty of scenic lands, such as the plains of Serengeti National Park and Kilimanjaro National Park, along with the “big five” game. Tanzania’s shore also includes the tropical islands of Zanzibar and a marine park with coral reefs and whale sharks.
Expanding to Tanzania provides opportunities for growth in a variety of sectors. However, you can’t experience that growth until you have an infrastructure in place that will help you expand. G-P makes it easy to complete steps such as setting up a Tanzania payroll through our existing PEO in the country. When you choose Tanzania payroll outsourcing with us, you’ll quickly benefit from our team’s expertise and ability to help you stay compliant.
Taxation Rules in Tanzania
Tanzania uses a unique income tax table to determine how much employees will owe based on what they earn. For example, employees making 520,001 to 760,000 Tanzanian shillings owe 22,500 Tanzanian shillings plus 20% of their earnings over 520,000 shillings. Both employers and employees make contributions to the National Social Security Fund (NSSF) of 10% of gross earnings. Employers must pay 5% of gross earnings on behalf of the employee.
Tanzania Payroll Options for Companies
Every company is different, which is why you can choose the Tanzania payroll option that works best for your needs:
- Internal: Large subsidiaries with a long-term commitment to operating in Tanzania have the best chance of creating a successful internal payroll. You’ll need a significant amount of money and a full HR staff for this option.
- Remote: Another option is adding employees to your parent company’s remote payroll in another country. You just need to follow the right laws and regulations for each nation.
- Local outsourcing: A Tanzania payroll processing company will help you pay employees the right amount on time, but that company cannot ensure compliance — you’ll still be held responsible for all decisions.
- Outsourcing with a global PEO: G-P acts as the Employer of Record for total compliance. We’re the Tanzania payroll outsourcing process you can trust to pay your employees and help you stay compliant.
How to Set Up a Payroll in Tanzania
Before you can set up your Tanzania payroll, you have to establish a subsidiary in the country. This requirement is in place for all foreign companies trying to expand to another country. The only exception is working with a global PEO, such as G-P. We offer Tanzania payroll outsourcing through our established PEO, so you don’t need to have your own subsidiary to begin working. This option will help you work quickly as well, without any worries about compliance.
Entitlement/Termination Terms
Clear termination and entitlement terms will help you stay compliant and avoid potential litigation or employee complaints. Termination notice required depends on how long the employee has worked for your company and in their position and ranges from four to 28 days. If the employee was terminated for unclear reasons and worked for your company for at least a year, you’ll need to provide severance pay.
Payroll Processing Company in Tanzania
G-P wants to help your expansion succeed. Contact us today to learn more about Tanzania payroll outsourcing.