What are payroll taxes in Tanzania?

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

Similar contribution rates apply to the Public Service Social Security Fund (PSSSF) scheme, which is a special fund for the employer and employees in the public sector. In the PSSSF scheme, the contribution by employer and employee is 15% and 5%, respectively.

The standard rate of VAT is 18%, but the export of goods and certain services is eligible for zero rating.