Taxation on salary

Hi All
There are new rules on tax ,See this website for details.

www.deloitte.com/.../Tax/Intl%20Tax%20a … nzania.pdf

There is an online guide to the income tax act 2004 on the Ministry of Finance website
http://www.mof.go.tz/mofdocs/revenue/in … /start.htm
but I think it may be a bit out of date.

If you live in Tanzania for less than two years you are taxable for work done in Tanzania or income derived from Tanzania (whether or not the actual payments are made from or into Tanzanian bank accounts).

If you live in Tanzania for more than two years you are taxable on your worldwide income (income for work done in Tanzania and outside income including rent on properties outside Tanzania etc).  However, you receive a tax credit for any tax which has already been paid on worldwide income in other countries (this is subtracted from you Tanzanian tax liability).

Best wishes from Elaine Baker-Guni (formally worked on taxation in Tanzania in the Ministry of Finance).

If you are a non-resident for tax purposes (i.e. you have been in Tanzania for less than 183 days in a year)you are subject to tax on your salary or emoluments at the rate of 15%. Further, non-residents and foreigners who have lived in Tanzania for less that 2 years are only taxable on income derived from Tanzania.

If you are a Tanzanian tax resident, you will be subject to tax at graduated rates ranging from 0% to 30% (based on the graduated rates the first US$ 525 will be taxed app.US$ 85, while any amount in excess will be taxed at 30%.

Please note that all employees are also required to contribute to the social security (10% of salary to NSSF or PPF). This is deducted from the salary amount before computing the tax.

I am a tax consultant so if you require more details regarding taxation in Tanzania, please feel free to get in touch.

Hi,

I have been offered a job in Dar Es salaam from India at salary of 2800$ out of which 2200$ is saving which is transferred to India and $600 is local salary.

Request you to kindly know is there is any tax for the same

Thanx