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1.1ÌýÌýÌýÌý Introduction: overview of the domestic payroll system

The tax year in Tanzania runs from 1 January to 31 December. The tax administration body is the Tanzania Revenue Authority (TRA). Income tax is payable by individuals who are residents in Tanzania (other than short-term residents) on their worldwide income. 'Short-term residents' and non-residents are taxable on income from a Tanzanian source.

Tanzanian source income

In accordance with Income Tax Act, s 69, income from employment has a Tanzanian source if it is by virtue of hire of service, via payroll, whether the service is:

1. Ìý

   •ÌýÌýÌýÌý performed in Tanzania, or

2. Ìý

   •ÌýÌýÌýÌý performed outside Tanzania where the payer is the government of Tanzania

Tax is applied to the payment of any salary and wage, including any fringe benefits, which employers pay to their employees by virtue of hire of service whether.

The top marginal rate of tax for resident