INVESTMENT GUIDE

home in Tanzania or was present in Tanzania during the year of income
for 183 days or more. A person will also be regarded as resident if he was
present in that year of income and in each of the two preceding years of
income for periods averaging more than 122 days in each such year of
income.
A variety of employee benefits are taxable. These include housing, vehicles
and interest-free loans provided by the employer. The contribution to the
National social Security fund (NSSF) is 20% of the employee’s gross pay
with both the employer and the employee sharing the burden (10%
each). This contribution is tax-deductible for both.
The skills and development levy is payable by any employer who employs
four or more persons; the rate is 4.5% of the gross wage. In addition, the
levy is tax-deductible. Furthermore, employment in agriculture is exempt
from the levy.
The Simiyu Region and Central Government are in the process of
streamlining these taxes to improve the tax structure, make them more
transparent, and less complicated.
Other taxes related information may be obtained from local or national
Tanzania Revenue Authority offices, Telephone: 0800 750 075. 0800;
www.tra.go.tz, 28 Edward Sokoine Drive,11105Mchafukoge, Ilala CSR,
P.O. Box 11491, Dar es salaam, Tanzania.
4.3 Incentives
The Tanzania Investment Act (TIA, 1997), transferred all the tax incentives
to Income Tax, 2004, East African Community Customs Management Act,
2004, Value Added Tax Act, 1997 as revised in 2006.
The investors who are in lead and priority sectors, they are allowed Import
Duty and VAT exemptions on their Capital/ Deemed Capital Goods;
these sectors are; agriculture including livestock, Air Aviation, Commercial
40 | SIMIYU REGION INVESTMENT GUIDE