SDL is a levy imposed via the Vocational Education Training Act and collected by Tanzania Revenue Authority (TRA).
Who pays SDL?
The Employer who employs four (4) or more employees is liable to pay SDL.
SDL can be paid via the TRA REVENUE GATEWAY SYSTEM 1.4 or by using the Employment Taxes Payment Credit Slip (ITX 300.01.E – Employment Taxes Payment Credit Slip).
How is it calculated?
SDL is a percentage charge on the Gross Emoluments paid by an Employer in each particular month.
Gross Emoluments is a sum of amount from salaries, wages, payments in lieu of leave, fees, commissions, bonuses, gratuity, any subsistence traveling , entertainment or other allowance received by employee in respect of employment or service rendered.
What is the current SDL percentage?
5% 4.5% (from 1 Jul 2016)
Are there any returns to be filed with TRA for SDL?
Yes, two returns are currently required to be filed with TRA for SDL:
- A monthly return (ITX 219.01.E – SDL- Monthly Return) to be submitted to the TRA office on or before the 7th day of the month following the month of payroll. This requirement was introduced by the Tax Administration Act, 2015 and is applicable from July 2015.
- A half year certificate (ITX 220.01.E – SDL employers half year certificate ) which tallies with the monthly returns submitted during the period.
More questions?
Feel free to call our Tax Department if you need any assistance in understanding and paying SDL.