- Overview: Tanzania
- Global PEO and payroll
- Global HR Compliance
- Work permit for hiring expats via PEO
- Expand without a company set up
- Contractor vs. employee: which is better?
Global PEO and Payroll in Tanzania
Many companies seek global expansion, but they often get bogged down by the complexity of international regulations. They might not know where to begin or even how to find the right partners to help them navigate this new territory.
Or, they may be operating in a well-established market with no foreseeable near-term plans for growth outside their home country and therefore may not see the point in an international expansion.
Some companies have invested the time and money necessary to create a robust, global infrastructure that meets the demands of their business model. And some companies have been lucky enough to grow internationally by following a few rules of thumb.
It’s not hard to see why so many businesses are drawn to expand overseas. But it’s important to remember that corporate and indirect tax, immigration, employer obligations, and more laws are constantly evolving. What may have been widely accepted ten or even five years ago as a rule of thumb may no longer apply. Permanent establishment laws, for example, are changing rapidly to account for the digital economy and to stem the tide of base erosion and profit shifting.
Acumen’s Global PEO and Payroll solution was designed especially for companies like yours, to smooth the way for quick, easy and risk-free business operations in Tanzania, without having to establish a legal business entity.
What is a Global PEO?
A PEO, or Professional Employer Organization, is a company that specializes in handling human resources for other businesses. PEOs can provide a wide range of services, such as payroll processing, benefits administration, tax reporting, workers’ compensation insurance, unemployment insurance claims management, employee screening, legal and regulatory compliance assistance, HR consulting, immigration services, and other financial services. Businesses that partner with a PEO can outsource many of their HR needs and focus on running their core operations.
With a robust global PEO, you can make global employment decisions quickly and confidently – without getting buried in immigration or labor compliance work. You can quickly and easily employ your pre-selected world-class talent from any country. Perhaps more importantly, with our Global PEO services, we minimize your permanent establishment, employee immigration, or misclassification risk – leaving you free to focus on running your business.
Having a Global PEO and payroll solution, you don’t need to worry about the cost of maintaining a workforce, recruitment, securing visas or work permits for foreign hires, issuing documents, managing payroll and employee benefits, collecting payroll tax, and paying personal and corporate taxes.
Entering into a partnership with a global PEO who is committed to helping provide excellent employment opportunities. This partnership will enable you to dramatically expand your services and reach in any part of the world.
Why Use a Global PEO?
The best global PEO is worth its weight in gold because of the services it provides. Without this kind of global employment support and talent engagement model in today’s fast-paced workplace environment, you will most likely not be able to compete on a global scene with other companies that have one.
PEOs are an exciting new trend in the business world. Initially created to help small businesses manage their employee benefits, PEOs are now being utilized by big corporations and start-ups alike. They offer many benefits that can help companies save money, including the ability to bundle services from multiple providers, lower prices for employee benefits, coordinated global administration payroll and benefits administration, and streamlined global employment compliance.
The greatest benefit of these organizations is the ability to outsource the time-consuming tasks associated with running a company while focusing on your organization’s core business. PEO’s also work well for companies with multiple locations or remote workers because they provide uniformity regarding worker experience. They can integrate any new hires into the overall culture of your organization.
How to Choose a Global PEO (Professional Employer Organization) in Tanzania?
As you consider a global PEO (Professional Employer Organization Partner) to manage your employees, imagine what would go wrong if the relationship didn’t work out. How would it affect your business? What if the PEO closed its doors or went bankrupt? Can you be sure your employees are covered in all eventualities? The best global PEOs can provide peace of mind and financial protection for employers and their staff, but you must do your homework before deciding on a global PEO partner.
Looking for a global PEO that can address your industry’s specific and global employment challenges is key to finding the best service provider. A global PEO with a strong track record and fiscal stability can help you address the needs of your industry while also providing compliance expertise and support.
Global PEOs help employers by taking on both the administrative burden of HR management and the financial responsibility of workers’ compensation. An added benefit is that they help you avoid having to make payroll tax deposits, which is especially helpful for small businesses that don’t have HR staff on hand to make these payments. They may even offer technology solutions that streamline payroll processing for employers.
Acumen International – Your Single Point of Truth and Global Employment PEO Solutions Provider in Tanzania
- 100 % compliant, quick, easy market entry. Acumen Global PEO is your local legal entity, helping you reduce the cost and time associated with incorporating.
- Immediate global employment service coverage in 190 countries
- Both a single point of contact and a dedicated account manager for your project for all target countries.
- Compliant and secure global employment operations. We help you adhere to all local laws and regulations in 190 countries
- A single contract for all in-country services (employment, immigration, legal, etc.)
- A single PEO provider assumes full responsibility for your international employees in multiple countries
- Payments are made within the UK or to the UK bank company account
- Fully compliant with standardized procedures and reporting systems
- You can delegate to Acumen Global PEO all HR responsibilities Payroll & benefits administration, background checks, and HR helpdesk
- Standard payroll breakdowns for all target countries
- As soon as we receive your request for a project in any country, we will send you a payroll breakdown and offer within 2 working hours
- Full 100% fee money-back guarantee for the employee or contractor payment delays.
- Tailored and 100% compliant employment contract drafts
- With Acumen in your corner, you can quickly and easily onboard and compensate your employees without risk of legal repercussions
- Acumen Global PEO and Payroll solution protects your company’s Intellectual Property rights
Global Payroll Calculator: Accurate Global Employment Cost Estimation
When hiring employees and contractors across the globe, you may not be choosing the most cost-effective and business-friendly country.
- Do you know which country is the most cost-effective place to hire employees?
- What are the costs of entity establishment and legal representation?
- What are the payroll costs and management fees?
- What are your ongoing annual tax compliance costs?
- Are you fully aware of banking implications?
- Did you know that labour laws and hidden costs could make your company less efficient when choosing a country to run your business?
- Did you know that there could be a more cost-effective country to hire employees in and save up to 50%?
- How to hire international teams without setting up a local entity?
This is because countries have different labor laws, compliance, and tax regulations. What if, instead of limiting your company’s international expansion by cutting through the jungle of local regulatory compliance, tax, labor, and immigration requirements, you could have all the information of 190 countries at your fingertips?
The Global Payroll Calculator is built by Acumen International to help businesses understand the compliance requirements for conducting business in a new country. Acumen’s research team tracks developments in 190 countries around the globe. It provides up-to-date data on local regulations related to tax, payroll regulations, benefits, hiring practices, compliance requirements, and other labor-related factors that impact an employer’s bottom line. This valuable information makes the Global Payroll Calculator an invaluable tool for businesses looking to expand internationally.
Global Payroll Calculator helps companies reduce labor costs by providing up-to-date information on hiring, compensation, and tax requirements. It is also an ideal tool for quickly locating employees in any country.
International Global Payroll and Taxation in Tanzania
Employment related taxes
Personal Income tax (PIT). Income tax is payable by individual’s resident 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. Personal services have a Tanzanian source if performed in Tanzania or performed outside Tanzania but where the payer is the government of Tanzania.
Residence (Local & Expat).
Tax resident employees. An individual is resident in Tanzania in any tax year if one has a permanent home in Tanzania and visits Tanzania in the year or has no permanent home but is present in the country for either 183 days in the year or an average of 122 days per year in the relevant year and the preceding two years.
Short-term resident. An individual is a short-term resident at the end of any income year if during the whole of one’s life one has been resident in Tanzania for not more than two years in total.
Non-tax resident employees. Non resident individuals are subject to tax on total (business, investment and employment) income derived in Tanzania.
Nontaxable payments. The following benefits are specifically exempt from tax:
- The traveling costs for passage of the taxpayer, spouse and up to four children, if the individual is domiciled more than 20 miles from his or her place of employment and performs services for the employer only.
- Cafeteria services on the business premises that are available on a nondiscriminatory basis.
- Contributions to approved pension funds and provident funds.
- The value of medical services granted on a nondiscriminatory basis to a full-time employee or a director providing full-time services, the spouse and four children.
- Benefit for use of motor vehicle if the employer does not claim any deduction or relief with respect to the vehicle.
Social security contribution. 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.
Payroll Cycle in Tanzania. Wages payout on hourly, daily, weekly or monthly basis.
Non-payroll taxes in Tanzania
VAT is chargeable on all taxable goods and services supplied in, or imported into, Mainland Tanzania. The export of goods and certain services is eligible for zero rating. The Commissioner has the discretion to register (as intending traders) investors whose projects have not commenced production of taxable supplies but wish to be VAT-registered in order to reclaim the tax they incur on start-up costs. A business that only makes exempt supplies is unable to register for VAT and, consequently, unable to recover the VAT incurred on inputs.
Registered businesses must submit VAT returns, and pay any tax due, on a monthly basis.
There is also mandatory registration for professional service providers (e.g. lawyers and accountants) and government entities/institutions carrying out economic activities. A non-resident who carries on an economic activity in Mainland Tanzania without a fixed place (e.g. non-resident suppliers of B2C electronic services) and makes taxable supplies in excess of the VAT registration threshold is required to appoint a VAT representative.
The input tax claim time limit is six months. However, this time limit starts to run not only by reference to the date of the tax invoice/fiscal receipt but also by reference to the date of the time of supply.
Why Should You Choose a Global PEO Service Over Setting Up Legal Entities?
One thing that doesn’t get discussed as much as it should is whether or not trying to set up a business entity can hurt your expansion plans.
Payroll taxes and service fees can be a big burden for employers. Many companies choose to use a Global PEO (Professional Employer Organization) to help with these costs. PEOs typically charge a percentage of the total payroll, including employee insurance fees. It can be difficult to determine the actual costs for these services, especially when some employer taxes are only paid on wages up to a certain threshold.
Single Global Service Agreement
A global PEO can cover all your international projects within a single contract and add new employees and services as you expand your global workforce in the new countries.
No Required Minimums
We accept projects of any length, with any number of employees.
Whether you need to scale up or down, we adjust your pricing based on the project employee number.
End-to-end Global Employment Solution
We manage all your global services, including employment, recruitment, immigration, legal and global HR consulting, saving you valuable time. And Acumen Global PEO and Payroll solution covers the cost and saves you the effort of finding and selecting local employment-related service providers.
How Acumen’s International PEO and Payroll Service can Benefit Your Business in Tanzania
Compensating your local and expat workforce in Tanzania and closely adhering to Tanzanian taxation requirements can divert your attention and resources from activities that help your business grow. A reliable global employment solution like Acumen’s Global PEO and Payroll service can take a substantial burden off your shoulders so you can focus on running your company.
Outsourcing the administrative and compliance tasks involved in employee payroll is one approach, but we have a better solution. Acumen International offers a global PEO and payroll solution that goes beyond outsourcing. We hire and compensate your global workforce on your behalf, and take care of all the details of payroll while ensuring full compliance with Tanzanian labor and taxation laws.
Our comprehensive global PEO and payroll services are just some of the benefits of partnering with Acumen International. We make it easy for you to achieve your business goals in Tanzania by officially employing and compensating your best selected global talent – both locals and expats – without concerns for legal and compliance risks faced by global employers.
It is important to note that Acumen does not provide international global payroll services as a standalone solution, but only as a part of our global PEO and Payroll solution.
Disclaimer: Any of the above information is subject to changes imposed by Tanzania laws. To get the latest updates on taxation in Tanzania and in 190 countries worldwide, contact Acumen’s team of global employment experts.