Disclaimer: 

     This publication has been prepared for information purposes only, and it does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty is given as to the accuracy or completeness of the information contained in this publication, and, to the extent permitted by law, Cymbell Attorneys, its partners, employees and agents do not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it. 

Contact Information 

CYMBELL ATTORNEYS 

P.O BOX 11481 

Office No. 302-2, 3rd Floor, Plot 89, Block 45B,  

Victoria Noble Centre, Bagamoyo Road,  

Dar es Salaam- Tanzania 

Cell: +255 713 411 721 

Email: law@cymbellattorneys.com 

Website: https://tz.cmadvocates.com/  

The post Proposed Amendment to the Labor Law in Tanzania appeared first on Cymbell Attorneys.

INTRODUCTION 

In different labor cases Parties have embarked on the wrong legal recourse of seeking their righteous compensation from termination of employment contracts. All labor disputes are addressed through Form No. 1 in the Commission for Mediation and Arbitration (CMA), identifying the nature of the claim. Each claim has a distinct condition and relief compared to the other, such as breach of contract compared to unfair termination. Some of the unsuccessful labor cases have been rooted in failure to distinguish and pursue the appropriate claim. 

MATERIAL FACTS OF THE CASE 

In the above case, the appellant was employed by the respondent permanently as an office administrator on the 6th of May 2016, but unfortunately, his contract was terminated after 3 Months, to wit on the 9th of August of 2016 due to economic constraints.  

The appellant filed a complaint to the (CMA) seeking compensation for unfair termination. The CMA pronounced termination was substantially and procedurally unfair and awarded the appellant 33,600,000.00. Dissatisfied with the decision, the respondent successfully revised the CMA decision by the High Court vide Revision No. 12 of 2017. The High Court stated that CMA had no jurisdiction to entertain the appellant’s claims that were based on unfair termination as the appellant had worked for less than six months with the respondent. 

DETERMINATION BY THE COURT OF APPEAL 

This time the appellant approached the Court of Appeal of Tanzania with two grounds, which one ground was abandoned later, bringing one ground of appeal “That the appellant having a permanent contract was not subject of limitation under section 35 of the Employment and Labor Relations Act No. 6 of 2004.” 

The Court ruled out that the provision of section 35 of the Act specifically deals with unfair termination, which bars an employee from instituting a claim for unfair termination in the CMA unless such person has served for a period of not less than six months.  

A dispute over termination from a specified employment contract finds its remedies in the claim of breach of contract, which is compensation for the remaining employment period. For an unspecified/permanent employment contract, an employee is required to seek unfair termination to obtain relief of 12-month remuneration, as provided under section 40 A and 40 (1)(c) of the Employment and Labor Relations Act Cap 366 R:E 2019, respectively. 

The court further stated an employee who has worked for less than 6 months cannot sue for unfair termination, but such an employee can access the CMA through other claims such as breach of contract for the specified period contract.  In this case, the appellant claimed through the referral Form No. 1 for unfair termination which could not yield success as he only offered a 3-month employment service. 

Furthermore, the court stated that the provision of section 35 of the Act deals with all types of employment contracts and does not identify certain contracts to be covered there. The provision also lays the condition necessary to claim for unfair termination, that is 6 months or more. 

CONCLUSION 

Therefore, an employee must work for at least 6 months or more to claim unfair termination; or rather if the contract is a fixed term contract it’s proper to resort to breach of contract since this nature of contract is not barred by section 35 of the Act. This case joins other landmark cases to hammer the restriction of employees who just offered less than 6 months of service not to embark on unfair termination. 

Disclaimer: 

     This publication has been prepared for information purposes only, and it does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty is given as to the accuracy or completeness of the information contained in this publication, and, to the extent permitted by law, Cymbell Attorneys, its partners, employees and agents do not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it. 

Contact Information 

CYMBELL ATTORNEYS 

P.O BOX 11481 

Office No. 302-2, 3rd Floor, Plot 89, Block 45B,  

Victoria Noble Centre, Bagamoyo Road,  

Dar es Salaam- Tanzania 

Cell: +255 713 411 721 

Email: law@cymbellattorneys.com 

Website: https://tz.cmadvocates.com/  

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Business entities, particularly ones dealing with finance related aspects tend to have the need to employ various finance and business software in order to facilitate their activities. This is especially true for the emerging FINTECH firms in the country which are likely to pay for software from foreign distributors.

A company may either lease, acquire or build software to facilitate its business and what option is selected mainly depends on the capital of the firm and the specific requirements of its business.

Some firms may find acquisition or building of software to be a more favourable option compared to leasing, however these are tied to a much higher initial costs and the need to constantly maintain said software. This has led to a situation where companies rely on paying for the license to use needed software as it is much less cost prohibitive and the responsibility to maintain and update such software is still left to the owner/distributor.

THE CASE FOR DOMESTIC SOFTWARE OWNERSHIP

Tanzanian firms with the expertise and capacity may consider building or acquiring software for licensing to cater to the emerging commercial space in Tanzania. Payment for the use of software may be preferable to a firm over acquisition but acquisition may be a more financially sound decision where the acquiring firm intends to license said software to several other firms with similar use cases and demand.

Since software is not permanently restricted to production capacity, as is the case for physical commodities, it can be replicated by the owner/publisher by however many copies are needed. For instance, for one to sell more oil, they need to drill more of it from the ground in order to address the demand. Where there is an increase in demand in a particular software, this requirement simply does not exist. Software is infinitely scalable and once it is built or acquired it can be supplied without production concerns.

Thus, the growing demand for financial and business software in Tanzania may be addressed with an adept enough firm.

Exclusive rights to software can only be fully sold once but it can be licensed forever to address whatever demand erupts. Currently there is a global silicon chip shortage. Manufacturers of various electronics such as computer hardware, mobile phones and even car makers are finding it excessively difficult to keep up with the demand for their products which has resulted in the increase of production costs and loss of potential income. This is simply not an issue that can directly affect a software manufacturer.

With this to consider, the number of clients one can secure for their software will dictate how much can be earned. Thus, owning of software and then licensing the same to clients may, over the long-term, be a much wiser financial decision than complete sale since financial gain, considering other business factors are optimal, is likely to be much higher. In conclusion, you can only transfer ownership once, but you can license forever.

Intellectual property protection considerations

The ownership of software in Tanzania carries a different sort of concern from having a user licence. The concern that owners of software in Tanzania must address is the protection of their valuable IPs from third parties who may wish to reproduce, sell or otherwise exploit the same without approval. Fortunately, Tanzanian laws do cater for the protection of software as intellectual property however it should be noted that such protection can only be offered where registration is done.

1. Patent.

A patent allows an owner of software to the rights of ownership and employment of the software for a specific amount of time and this is applicable to software that is an invention, new and involves an inventive step and is

industrially applicable as per Section 8 of the Patents (Registration) Act, Cap. 217.

Patenting of software is possible in Tanzania as per Section 18 and 28 of the Patents (Registration) Act, Cap. 217 where registration is sought to grant the right to the software owner to use and market their software in exclusion of other persons. And where third parties may wish to use said software then the same can be licensed by the owner as per Section 61 of the Patents (Registration) Act, Cap. 217.

Patents are also protected in Zanzibar as under the Zanzibar Industrial Property Act, 2008 as under Sections 6, 11 & 12.

2. Trademark.

A trademark can include the name(s), symbols, phrases and so on that are used in connection to a person’s software. Having a trademark is essential to the ownership of software since it allows for its recognition and distinction from other products.

The application for the registration to use a trademark is provided for under Section 21 of the Trade and Service Marks Act, 1986 and upon its grant, the owner of the trademark will be able to protect the software from attempts at mimicking its name(s), phrases or symbols.

In Zanzibar, the Zanzibar Industrial Property Act, 2008 as under Section 47 gives procedure for the registration of a trade or service mark in order to effect its protection.

3. Copyright

In Tanzania, copyright aims to secure published or unpublished software and the registration of the same is as provided for under the Copyright and Neighbouring Rights Act, Cap 218 for Tanzania Mainland and the Copyright Act, 2003 for Zanzibar.

Unlike patents and trade & service marks, copyrights are registered with the Copyright Society of Tanzania (COSOTA), for mainland, and Copyright Society of Zanzibar (COSOZA), for Zanzibar.

Tanzania is also a member of various international IP protection agreements and organizations including the African Regional Intellectual Property Organization (Oapi), African Intellectual Property Organization (Aripo), Patent Cooperation Treaty (PCT) and so on, which help to cater to the realization and protection of intellectual property rights.

Registration of patents and trade & service marks is to be done by the Zanzibar’s Business and Property Registration Agency (BPRA) or Tanzania Mainland’s Business Registration and Licensing Agency (BRELA).

Therefore, ownership of software in Tanzania is a possible venture as there exists a thriving and booming market and legal protection and recognition already exists to cater to the same.

THE CASE FOR USE OF SOFTWARE THROUGH LICENCE

Payment for the use of software may also be preferable to a firm in Tanzania over acquisition of the same. The reason for this is that acquisition is a financially sound decision only where the acquiring firm intends to license said software to several other firms with similar use cases and demand. Where a firm only needs to use a particular piece of software to facilitate its business it does not need to acquire such software but rather just pay for its use.

This makes sound business sense as it helps to keep the cost to income ratio of the firm at a minimum.

Licensing is what happens when a person “buys” software. Indeed, the transaction might be commonly termed as “buying” or “purchasing” but the traditional meaning of purchase or buy is to receive complete ownership of a particular thing or right through the payment of an agreed upon sum of money.

Where one pays money to use a particular software, for example Microsoft Office, what is being paid for is not the software but rather the right to use that software within the limitations of the terms and conditions attached to the use of said software.

Therefore, one does not acquire exclusive rights to do with a piece of software as they please after paying for the same. This is in essence the same principle that applies to other expressions of art such as songs, movies and books. The same way a book is not yours to copy, publish and sell without authorization is the same way you cannot do the same with software bought and paid for.

The global practice is that payment for the use of software is equivalent to payment for goods and services. Hence, the software manufacturer or distributor is in essence equivalent to a shopkeeper selling a bottle of water. Thus, to the manufacturer, money generated from such transactions are equivalent to business income.

In Tanzania, however, the position is different. The sale of software licenses, since the year 2019, is not regarded as the sale of business goods. In Tanzania, where a payment is made for software to a foreign owner or distributor such payment is regarded as royalty and not as an ordinary payment. Hence, the software is taken to have been leased as a copyright.

This was discussed at length in the case CELTEL TANZANIA LIMITED V. COMMISSIONER GENERAL (TRA) CIVIL APPEAL NO. 56 OF 2018 in which the Court of Appeal of Tanzania elaborated that the purchase of software is not a purchase of a product but rather it is equivalent to payment for royalties in exchange for the right to use a particular software as per Section 3 of the Income Tax Act, 2004 [Cap. 332 R. E. 2019].

Tax implications on payment for the use of software

Royalty payments, therefore, attract income tax against the software owner or distributor that is to be withheld by the purchaser since such payments have a source in the United Republic.

Foreign firms as well must consider this difference in consideration of payments for software. Since these payments are regarded as royalty, the selling firm must keep in mind that part of the payment (15%) must be withheld by the buyer. This is by meeting the revenue requirements that have been set up by the law. Firstly, a payment has to be reported in the financial statements of a company in order to allow the Tanzania Revenue Authority (TRA) to take note of the same.

Secondly, before full payment is made, an amount equivalent to fifteen percent (15%) of the payment must be withheld and eventually paid to the TRA as income tax. Section 82 and First Schedule Rule 4(b)iii of the Income Tax Act, 2004 [Cap. 332 R. E. 2019] provides that income tax to be withheld from payment of software is fifteen percent (15%). This is the amount that will be chargeable

One might wonder: Why is income tax being imposed and against whom? The answer is that since a foreign software firm is not a registered tax payer in Tanzania but still gains an income from Tanzania it has to pay tax. Hence, it is the responsibility of the purchasing firm to withhold that tax payment for the TRA and remit the same. If this is not done, the burden of tax is placed on the purchasing firm as per Section 84(3) of the Income Tax Act [Cap. 332 R. E. 2019]

“A withholding agent who fails to withhold income tax in accordance with Subdivision A must nevertheless pay the tax that should have been withheld in the same manner and at the same time as tax that is withheld.”

Thus, tax is always a factor that must be taken into account to avoid unforeseen expenses and/or liabilities.

Conclusion

Regardless of the path taken, a firm purchasing software needs to be sufficiently vigilant to make adequate provisions for withholding payments with the software distributor. With this in mind, an organization must always be certain of and cautious to ensure that a software-based agreement has sufficient provision for withholding payments. This is especially crucial for the purchasing firm since failure to withhold payment will lead such purchaser to be personally liable to pay that withholding amount to the TRA.

Hence, familiarity with Tanzanian revenue laws aids in the avoidance of being caught by surprise with unexpected tax consequences.

Important Notice:

This publication has been prepared for information purposes only, and it does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication, and, to the extent permitted by law, Cymbell Attorneys, its members, employees and agents do not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it.

The post Intellectual Property: Differences Between Licensing and Ownership of Software in Tanzania. appeared first on Cymbell Attorneys.

The law has grouped insurance businesses into two main categories and these are:

1. General Insurance Business
2. Life Insurance Business

General Insurance Business

A general insurance firm determines its income from the insurance business after accounting for all insurance payouts made to its clients for the year against the premiums that were not paid. Simply speaking, for every client whose premium was not compensated such premium will be considered as a profit made by the insurance firm. The opposite is true i.e., for each client compensated such compensation shall be considered as an expenditure or expense against the total turnover of the firm.

It should be kept in mind that any other income made by the insurance firm will be computed as per the other provisions of the Income Tax Act [Cap. 332 R. E. 2019].

Treatment of income of a general insurance business can be observed under Section 58 of the Income Tax Act [Cap. 332 RE. 2019] which explains how income of a general insurance business is computed and thus taxed.

The inclusions into the business are listed to be

• Premiums received from clients of the business
• Payments received from re-insurer(s) of the business

The amounts to be deducted from income are

• Payments made to persons insured or re-insured by the business
• Premiums paid by the business to re-insurer(s)

Life Insurance Business

The life insurance business operates differently from a general insurance business in the sense that collected premiums are paid out to the insured or their associate. In a wider span, the Income Tax Act has listed the classes of life insurance as under Section 3 to include Insurance where the specified events are:

• Death of insured individual or their associate
• Personal injury or incapacity of the insured or their associate
• Insurance agreements lasting for five years or more
• Insurance agreements where the insured is to receive payment of a certain amount/amounts
• Or re-insurance of either or all of the above

As we have now established the classes of life insurance it is safe to say, as per Section 3 of the Income Tax Act, that a business carrying on those activities listed above is carrying on the business of life insurance.

Proceeding to the taxation of the life insurance business, Section 59 of the Income Tax Act provides light towards what is considered as part of income and expenditure in the life insurance business. Inclusions to income have been stated as under Section 59(2) a which provides that amounts that are included as income in other provisions of the Act will be regarded as income to a life insurance business.

However, the same sub-section expressly states under items (i) & (ii) that premiums paid into the business and also proceeds paid into the business by its re-insurer shall not be considered to form part of the income of the life insurance business for that year of income. The reason for this is that this sort of business pays out the premiums received at the occurrence of the events we saw above and thus cannot be considered as profits or income unlike in general insurance businesses.

With regards to deductions, Section 59(2) b provides that only the expenses of managing the investments of the life insurance business, including commissions, are deductible as under other provisions of the Income Tax Act. However, what amounts are not deductible can be observed as under items (i) & (ii) where the law provides that payments of premiums to re-insurer(s) and payments of proceeds to the insured or re-insured are not regarded as deductible expenditure since their vice versa were not regarded as income.

Finally, the law as under Section 60(1) of the Income Tax Act provides that the payments received to an insured or re-insured person from insurance will be treated in accordance with Section 31 of the Income Tax Act as compensation/recovery payments and shall be used in the calculation of the income of the person but subject to the provisions of Sections 58 & 59, that we have observed above, and Section 60(2) that we will analyze shortly.

Sections 60(2) & (3) of the Income Tax Act are based on the aspect of gains that are made as a result of receipt of payment from life insurance to an insured person. Simply, where a person receives more money from a life insurance compared to the amount that was paid as premium then it is regarded that they have received a gain (or profit) from that arrangement.

In such circumstances, if the gains were made from payments by an insurance firm/business that is a resident for tax purposes then they will be exempted from tax. However, if the payments were from a non-resident insurer then the gain will be included in calculating the income of the insured person.

CONCLUSION

Insurance businesses must exercise caution and vigilance in taking note that other provisions of the Income Tax Act and other tax laws remain in application to them. This means that compliance with all relevant tax, insurance as well as other applicable laws of the United Republic of Tanzania is a crucial consideration for the continuity of the business.

Important Notice:

This publication has been prepared for information purposes only, and it does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication, and, to the extent permitted by law, Cymbell Attorneys, its members, employees and agents do not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it.

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Obtaining Work and Residence Permits for Foreigners in Tanzania

A resident permit is a legal document that permits a foreigner to reside in the United Republic of Tanzania. Meanwhile, Work permits allow foreigners to work or engage in business activities in Tanzania. One can apply for a resident and work permit by making and submitting an application to the Ministry of Home Affairs and Ministry of Labour, Youth, Employment and Person’s with Disability respectively. Work permits are processed by the respective employer on behalf of the foreign employee. 

RESIDENCE PERMIT 

Are issued by the Commissioner of immigration and are classified as follows; 

Class A – issued to self-employed foreign investors intending to invest in prospective areas like mining, business, forestry, industry, etc. Their application is done through Tic or directly to immigration headquarters.  

An investor eligible for a class A working permit can acquire a class A residence permit. 

This class is categorized into five other classes. 

Class B – issued to foreigners employed by companies or institutions, who possess technical skills or high-skill positions in Tanzania not available in the local market. This permit has to be requested before entering the United Republic of Tanzania. This permit is classified into, 

B-1 where this is given to persons who have been offered specific employment by a specific employer and have acquired qualifications and experience. 

B-2 is given to professionals, technicians, and associates professionals from EAC partner states as prescribed in the schedule to the EAC common market protocol (free movement of workers regulations) 

Class C – issued to missionaries, students, volunteers, parties in the case, witnesses in a case, researchers, and other retired individuals or those attending medical treatment. This permit must be requested before entering Tanzania. 

This class is specifically classified as follows; 

WORK PERMIT 

Foreigners who wish to work in Tanzania must comply with the requirements outlined in the Non-citizens (Employment Regulation) Act of 2015. According to the Act, it is illegal for foreigners to work in Tanzania without a valid work permit. To obtain a work permit in Tanzania, the applicant must submit an application to the labor commissioner. The person who wishes to employ a foreigner in Tanzania must submit an application which shall be subject to approval. There are several classes of work permits, as laid out under Section 13 (1) of the non-citizens (employment regulation), classified depending on the purpose of the work. These are elaborated below as follows; 

WORK PERMIT CLASS A 

These permits are issued to foreign investors who are self-employed and regarded as shareholders of the businesses or entities registered in Tanzania. A foreigner who wishes to invest may be registered with the Tanzania Investment Center (TIC) or the Export Processing Zone Authority (EPZA) for Tanzania Mainland. The work permit is valid for two years subject to renewal. Section 12 of the non-citizens (employment regulation) further provides that, that an investor can have a work permit for up to 10 years when the investment is of great value. 

WORK PERMIT CLASS B 

This permit is given to a non-citizen who has a specific profession. It is offered to highly skilled positions and includes doctors, accountants, teachers, engineers, experts in oil and gas, teachers and university lecturers and so forth. A person qualifying to work under class B must apply for a residence permit falling under class B.  

WORK PERMIT CLASS C 

This is issued to non-citizens in possession of all other professions. A non-citizen qualifying to work under this class must apply for a residence permit B. 

WORK PERMIT CLASS D 

This class is issued to a non-citizen who is employed or engages in registered religious and charitable activities. Such non-citizens can also receive a residence permit class C-1 

WORK PERMIT CLASS E 

This permit is issued to refugees; to persons who have acquired a refugee status in Tanzania subject to the Refugee Act. 

Basic requirements for the Work and Residence Permits: 

1. Justification letter
2. Dully filled application form
3. Two (2) soft copy of recent passport size photographs with blue background
4. Copy of a Valid Passport (Validity should not be below six months before expiry)
5. Scanned copies of original Academic/Professional certificates.
6. Translated documents and scanned copies of certificates before translation if any.

8. Detailed Curriculum Vitae/ Resume 
9. Employment/Engagement Contract 
10. Detailed Job Description.
11. Return on Employment of Non-Citizens (there is a specific form for this). The ratio is 1:10 foreign to local citizen respectively.
12. Industrial/Business/Operating Licence of the employing company 
13. Proof of payment of prescribed fee for Work Permit (Original Pay in Bank Slip) 
14. Proof of registration with NSSF and WCF and current contribution records from the Employer 
15. Certificate of Tax Identification Number (TIN) of the employer 
16. Certificate of Value Added Tax (if any) of the employer 
17. Current Tax Clearance Certificate of the employer 
18. Certificate of Incorporation/Certificate of 
19. Compliance / Registration of Companies, NGOs, 

20. Introduction letter authorizing employee of the Organization to apply and make a follow up of Work Permit application and copy of such employee’s Work Identity Card. 

It is important to note that the work and residence permits once granted are valid for a period of two years only subject to renewal after every such period to the maximum of five (5) years for foreigners employed in Companies in Tanzania. For Investors and self-employed being directors and shareholders of an existing entity the permits shall be valid for a period two years too subject to renewal for an unspecified time given that the company is still a going concern.  

Disclaimer: 

This publication has been prepared for information purposes only, and it does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty is given as to the accuracy or completeness of the information contained in this publication, and, to the extent permitted by law, Cymbell Attorneys, its partners, employees and agents do not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it. 

The post Obtaining Work and Residence Permits for Foreigners in Tanzania appeared first on Cymbell Attorneys.

VISA APPLICATION 

A visa is an official document issued by the government of the United Republic of Tanzania through the immigration department that allows an individual applicant to enter, stay, or transit within Tanzania for a specified short period and purpose. VISA application is done online through the Immigration websites, regardless, the immigration reserves the right to require physical attendance of the applicant. There are categories of VISA’s issued to foreigners in Tanzania based on the purpose for entrance in the country.   

SINGLE ENTRY (ORDINARY/TOURIST) VISA 

This VISA is issued to a person who intends to visit Tanzania for tourism, holidays, family, conferences, meetings, health treatment, studies, leisure and any other activity legally recognized by the law in Tanzania. The applicant can stay in Tanzania for up to 90 days. 

Application requirements: 

Must have; a valid passport, 2 passport size photographs, return flight ticket, and provide itinerary, ticket, or tour operator package receipt. People traveling for specific reasons other than tourism must submit a letter from their organization or office. These include but not limited to volunteers, people attending meetings & conferences, studies, diplomatic, official and any other business not mentioned here. 

Visa applications for minors under 18 years traveling alone or with only one parent/legal guardians should be accompanied by a notarized letter, jointly signed by parents or legal guardians approving the minor to travel, A copy of their ID  

MULTIPLE ENTRY VISA 

This is issued to a person for a multiple purpose and the entry visa is valid for 12 months. The applicant can not stay in Tanzania for 12 months continuously, they must leave Tanzania every three months. 

Application requirement 

Must have; a valid passport, a recent passport size photo, letter explaining reasons for visit from respective ministry or institution, return flight ticket, marriage certificate if the applicant returns to visit his/her spouse, Documents of the Company like TIN, VAT, Registration Certificate, Certificate of Incorporation, Memorandum etc and any other evidence to prove that the applicant is bound to travel frequently into the United Republic of Tanzania. 

BUSINESS VISA 

Issued to foreigners who want to come to Tanzania for the purpose of temporarily conducting business, trade, professional or assignment. This visa allows a foreigner to stay in Tanzania for only 90 days and it is not extendable. 

Application requirement 

Must have a valid passport at least for 6 months, a contract or document that shows the applicant comes for business issues, and a return flight ticket. 

STUDENT VISA 

This visa is issued to international foreign students who want to pursue studies or research in Tanzania. The applicant is only allowed to stay for 2 years. 

Application requirement 

Must have; a letter issued by the university acknowledging the purpose of entrance to be for studies and a copy of a valid passport. 

TRANSIT VISA 

This visa is issued to an applicant who transits through Tanzania to a place of destination.  

Application requirement 

Must have; a copy of passport and biographical data, ongoing flight ticket and an entry visa or onward ticket to the intended country of destination. 

GRATIS VISA 

This visa is issued to diplomatic, service and official passports holders, who are on duty in Tanzania. This visa is issued on single or multiple entries. Holders of UN, SADC, AU Laissez-Passer and other International Organizations recognized by the United Republic of Tanzania are granted gratis visa, except when travelling on non-official capacity in which they are subject to pay for prescribed visa fees. 

• NB: There are countries in which their nationals are exempted from applying for visas in Tanzania. This includes East African community states and so forth. The following countries their nationals are not required to make a Visa application; Antigua & Barbuda, Anguilla, Ashmore & Certie Island, Bahamas, Barbados, Bermuda, Belize, Brunei, British Virgin Island, British Indian Ocean Territory, Botswana, Cyprus, Cayman Island, Channel Island, Cocoas Island, Cook Island, Christmas Island, Dominica, Falkland Island, Gambia, Ghana, Gibraltar, Grenada, Guernsey, Guyana, Heard Island, Hong Kong, Isle of man, Jamaica, Jersey, Kenya, Kiribati, Lesotho, Malawi, Montserrat, Malaysia, Madagascar, Malta, Mauritius, Macao, Mozambique, Nauru, Naue Island, Norfolk Island, Namibia, Papua new Guinea, Rwanda, Romania, Ross Dependency, Samoa, Seychelles, Singapore, Swaziland, Solomon Island, St. Kitts&Navis, St. Lucia, St. Vicent, St. Helana, South African Republic, Trinidad & Tobago, Turks & Caicos, Tokelan, Tonga, Tuvalu, Vanuatu, Uganda, Zambia and Malawi. 

PASS APPLICATION 

This is a document that entitles a foreigner to enter and reside in Tanzania for not more than 2 years, subject to the purpose for which the pass is sought. Just like visas, passes are issued by the immigration department through the Commissioner. There are various types of passes as highlighted below; 

MIGRANT PASS 

This is issued to people of African descent from bordering countries who migrated into the United Republic of Tanzania before 1972 and continued to reside without having a passport or identification of any other country. 

STUDENT PASS 

This pass is categorized into two. The first one is Student Pass I which is issued to persons studying in approved training establishments. These include children of persons legally residing in the country who are above the age of majority (18 years). This class requires a candidate to submit the following during application; 

1. Certificate of registration of institution 
2. admission letter and joining instruction 
3. evidence of sponsorship/scholarship and evidence of enrolment 

The next class is Student Pass II, this class is issued to children of persons legally residing in the country being below the age of majority and have not yet been endorsed in their parents’ residence permits but studying in approved training establishments including kindergarten, primary, secondary, and higher learning institutions. The application process requires an admission letter, evidence of sponsorship, parent consent if under guardian and valid resident permit of the parent.  

VISITORS PASS 

This is issued to prospective visitors who are foreigners and wish to enter Tanzania and do either of the following; spending holidays, traveling, appearing before a court of law, obtaining medical treatment, etc. This Pass allows a foreign individual to stay in the country for not more than 90 days. East African community members can stay up to six months. 

BUSINESS PASS 

This is issued to a person from a country whose nationals do not require Visa to enter Tanzania. It’s issued to conduct temporary special assignments or short-term professional roles like auditing, trade, fixing machines, conducting feasibility studies, etc. The Visa is valid for 90 days and it is not extendable. 

RE-ENTRY PASS 

This is issued to a foreigner who resides in Tanzania and intends to re-enter Tanzania after traveling outside. It is issued for a maximum period not exceeding the duration of the permit. 

SPECIAL PASS 

This is issued to a foreigner living or entering the United Republic of Tanzania, to allow him to apply for and obtain a residence permit, pass, complete any immigration formality or regulate immigration status after expiry. 

DEPENDENT PASS 

This pass is issued to dependent wife, children, or near relative. A male child who is above 18 years old is not treated as a dependent person. The application process requires, a copy of the applicant’s valid passport, passport of the dependent, copy of birth certificates, security bond form, copy of marriage certificate for dependent wife. 

CONCLUSION; A non-citizen who intends to fly into Tanzania must make sure that he/she has fulfilled the required conditions to meet his/her purpose of visit. Possession of a Visa for United Republic of Tanzania does not provide automatic right of entry for the holder into the Country. The Immigration Officer at the port of entry may refuse entry to any person, if he is satisfied that such a person is unable to fulfil the immigration requirements or that such person’s presence in the United Republic of Tanzania would be contrary to national interests or security. 

Disclaimer: 

This publication has been prepared for information purposes only, and it does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty is given as to the accuracy or completeness of the information contained in this publication, and, to the extent permitted by law, Cymbell Attorneys, its partners, employees and agents do not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it. 

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All business entities in Tanzania are required to file tax returns to the Commissioner of Tanzania Revenue Authority (TRA) according to Section 91 of the Income Tax Act R.E 2019 and Section 46 of the Tax Administration Act R.E 2019. This includes filing Pay as You Earn (Payee), withholding, Skills development levy, VAT, and income tax. This requirement is mandatory, and failure to comply attracts penalties for the business.

Now business owners should be aware that tax returns are required to be filed regardless the business entity has not yet registered itself for a Tax Identification Number (TIN) and obtained Tax Clearance Certificate. This comes after a TRA public notice was issued to remind taxpayers of the duty to make the filings to avoid penalties and other encumbrances.

Business entities that are not operating or have ceased to carry out their usual work operations but are still recognized by TRA as existing taxpayers are required as well to make filing of tax returns. Those with no TIN or with TIN but the business is not in operation yet are not released from filing tax returns. A taxpayer must make sure tax returns are filed on time. To those unaware, this may attract a huge penalty in time.

The registration systems for TRA and the Business Registrations and Licensing Agency (BRELA) operate harmoniously. Once an entity is registered with BRELA, TRA receives the same updates for the existence of a business. Even if a taxpayer has not attended TRA, the authority still holds the business entity accountable for tax payment in Tanzania, as required under Section 3 of the Income Tax Act.

A taxpayer must comply to file returns because by the time penalty(s) accrues, he/she cannot proceed with other regulatory compliances such as obtaining of tax clearance certificate unless penalty(s) is cleared or settles with the commissioner for TRA. Business entities that have not yet complied with the filing of tax returns must strive to make sure the business is in compliance and has paid the required tax dues if any. When the filling process is stiff it’s important to resort to professional assistance.

Disclaimer:

This publication has been prepared for information purposes only, and it does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty is given as to the accuracy or completeness of the information contained in this publication, and, to the extent permitted by law, Cymbell Attorneys, its partners, employees and agents do not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it.

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Introduction

Zanzibar is one of the greatest tourist destinations in Africa and the world at large. Recently, the travel magazine named Zanzibar as a top destination for those seeking relaxation and pleasure during the 2023 summer. It is in this regard, the Commission for Tourism is working very hard to ensure there are attractive environments for establishing tourism business in Zanzibar.

The Situation Before Changes

Zanzibar Tourism Act provides, inter alia, no tourism business shall be established in Zanzibar unless there is a valid license granted by the Zanzibar Commission for Tourism. Also, the Act provides that, the Director General upon the applicant’s fulfilment of the conditions set under the Act shall grant the license, and the license shall be valid for a period of one year. Practically a period of one year is defined to mean a traditional calendar year. In that essence, all people doing tourism business in Zanzibar were required to renew their license at the end of the traditional calendar year.

The Instigation of changes

On July 14, 2023, the Zanzibar Commission for Tourism issued a press release announcing the significant change in the validity period of licenses issued to tourism-related businesses. It provides, all licenses issued by the Zanzibar Commission for Tourism shall be valid for a duration of 12 months rather than following the traditional calendar year.  According to the press statement, the policy change is part of the ongoing commission’s commitment to promote ease of doing business and to accommodate the evolving needs of tourism businesses in Zanzibar.

Also, a point worthy noting is, the changes in the licensing policy will allow those who desire to engage in the tourism business to obtain their licenses at any time throughout the year, with subsequent renewals falling on the anniversary of the original issuance. This manifests the changes intended to promote ease of doing tourism business in Zanzibar.

Implications of the Licensing Policy Change

The change in licensing policy is expected to have the following implications;

• Streamline administrative processes; The policy change will simplify the administrative process because the application for renewal will be determined and granted at different times.
• Reduce bureaucratic hurdles; one of the noted challenges of investing in African countries is, the bureaucracy of the government institutions responsible for providing necessary documentation and licenses. In that regard, the changes of the policy to allow the validity of the license to be valid for 12 months rather than a traditional calendar year eliminates the unnecessary back and forth caused by the simultaneous renewal of licenses.
• Allow businesses to operate without interruption; the changes set a relief for the investors to continue with their business for a longer period of time without interruption by the commission. In that essence, eliminating the simultaneous license renewal promotes smoother operation for all stakeholders involved.

Conclusion

The licensing policy change is going to benefit both tourism operators and the government of Zanzibar as Ms. Hafsa Mbamba, the Executive Secretary of the commission quoted saying, interalia “We believe that this change will provide our valued tourism operators with more flexibility, enable them to focus on delivering exceptional experiences to visitors and contribute to the growth of Zanzibar’s tourism industry”.

Important Notice:

This publication has been prepared for information purposes only, and it does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication, and, to the extent permitted by law, Cymbell Attorneys, its members, employees and agents do not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it.

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On the 24th of January 2023, the Ministry of Community Development, Gender, Women and Special Groups (MOHCDGEC) issued a notice to the public on the dissolution of 4,898 Non-Governmental Organizations (NGO’s) pursuant to Section 7(1)(e) of the Non-Governmental Organization Act CAP 56 of the laws of Tanzania.

Out of those, 4,879 NGO have been dissolved for non-compliance with the requirements of the laws and regulations. The remaining 19 NGO’s have ceased their activities in the country voluntarily.

It is very important to comply with the set requirements of the laws and regulations for smooth operations of NGO’s. Some of these compliances in terms of Section 29 of the NGO Act include but not limited to;

1. Submission of annual activity and audited reports after completion of each year of the NGO’s operations
2. Payment of the respective Annual fees being Tshs 50,000 or USD 100 for International NGO’s

It is important to note that penalties (Tshs 100,000/- for Local NGOs and USD 300 for International NGOs) are imposed for late submission of annual activities and audited reports. Deadlines for submission of annual returns are indicated in the guidelines for filing annual returns.

For further guidance and advise reach out to us at law@cymbellattorneys.com or www.cymbellattorneys.com

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1. INTRODUCTION

Occupational health and safety are related with economic activities undertaken in the country. As the economic activities grow and expand, occupational injuries and diseases are more likely to increase among workers in different sectors of economy such as agriculture, mining, transport, and manufacture. The ILO Convention No. 161 on Occupational Health Services, the World Health Organization (WHO) Global Strategy on Occupational Health for All, and the WHO Global Plan of Action for Workers’ Health, 2008-2017, call for the organization of occupational health services to all working people of the world.

In Tanzania there are various laws, rules, and regulations on occupational health and safety formulated and implemented under different ministries, departments, and agencies. Although there are various legislations in this area, issues relating to occupational health and safety are mainly governed by the Occupational Health and Safety Act, 2003 (The Act) and the Employment and Labour Relations Act 2004, and Occupational Safety and Health Authority, which is mandated by the law to ensure compliance of Occupational Health and Safety is the Act.

The Act contains provisions seeking to protect the health and welfare of workers and improve working environment. The Act also requires the employers to provide the employees with protective equipment, by clearly stating that “Where in any factory or workplace, workers are employed in any process involving exposure to any injurious or offensive substance or environment, effective protective equipment shall be provided and maintained by employer for the use of the persons employed including supply of drinking water, washing facilities, first aid facilities, protective equipment and medical Examination.

1. Duties of employees imposed under the law

The duty to ensure occupational health and safety is not on the employers only. The act imposes duties and obligations upon employees to ensure their safety. The Act requires the employees to take reasonable care for the health and safety of themselves and any other persons who may be affected by their actions or omissions at work. They also have a duty to cooperate with the employer to enable the duty or requirement imposed by the employer to be performed or complied with.

They have a duty to carry out any lawful order given to them and to obey the health and safety rules and procedures laid down by employer or an authorized person in the interest of health and safety. To report to their employers or health and safety representative any unsafe or unhealthy situation coming to their attention. To report to their employers or health and safety representative any incident or accident which may cause injury to their health as soon as practicable (not later than the end of a shift unless circumstances prevent so).

1. Compliance Issues under the Act.

Generally, the act requires employers to be compliant with the following issues to ensure occupational health and safety to employees. The following are the duties imposed to employers.

1. To register the factory/workplace/business with the Occupational Health and Safety Authority.
2. To conduct regular medical examinations of employees in accordance With the Act;
3. To choose health and safety representatives in a workplace with four or more workers.
4. To formulate the Occupational Health and Safety policy.
5. To conduct Occupational Health and Safety Baseline risk assessment.
6. To ensure the workplace has an active safety and Health committee.
7. To ensure that the workplace has been inspected by the authority on Occupational Health and Safety matters.
8. To ensure the workplace has a trained first aid personnel; and
9. To ensure that medical examinations (fitness to work) for employees have been conducted by the Authority.

Employers must make sure that the workplace is safe and healthy and must not allow any worker to do work that is potentially dangerous. The employer shall have the duty to ensure that factories or workplaces are provided and maintained in an accessible position, and there is a supply of fire extinguishing equipment which shall be adequate and suitable having regard to the fire risk involved.

They must inform workers of any possible dangers in the workplace. They must give necessary training to workers who use dangerous machines and materials, to make sure they know the safety precautions. They must reduce any dangers to a minimum before issuing protective clothing. They must issue protective clothing where necessary. They must prevent workers from using or working with dangerous materials or machines unless all safety rules have been followed. They must ensure that dangerous machines are in good working order and are safe to work with. They must make sure that dangerous machinery carries warnings and notices. They must make sure that somebody who knows the work is supervising the operations to ensure the safety of workers. They must keep the workplace open so that workers can escape from danger if necessary.

The employer is required to report any incident or accident which has occurred at a place of work and has resulted in death, body injury, and loss of conscious, occupational illness or has permanently incapacitated a worker, within twenty-four hours from the time the incident has occurred. Within seven days from the day the incident was reported the employer is required to send a duly completed prescribed form containing information on the incident.

1. Punishment for non-compliance Act by employer or employee

The act imposes punishments for non-compliance to both the employees and employers, where such a contravention has been occasioned by an employer and as a result an employee is killed or suffers serious body injury the employer may be liable to a fine of not less than 10 million or to imprisonment for a term not exceeding two years or both imprisonment and fine. The Court may in addition to a fine or instead of imposing a fine may also order the cause of contravention to be remedied.

If an employee contravenes the provisions of this law relating to health and safety, they will be liable for penalty or imprisonment or both penalty and imprisonment depending on the offence.

1. Conclusion

Employers must make sure that occupational health and safety regulation and policy are being complied with effectively at their workplaces by arranging regular intensively inspections and supervision within their organizations. This supervision will effectively ensure the safety of the workers in their working environment; and must done regularly. By doing this, unnecessary penalties and punishments shall be avoided by employers.

Important Notice:

This publication has been prepared for information purposes only, and it does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication, and, to the extent permitted by law, Cymbell Attorneys, its members, employees and agents do not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it.

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