Skills and Development Levy: is a levy imposed under Section 14 of the Vocation Education Training Act, Cap. 82 and collected by TRA.


SDL is charged based on the gross emolument of all payments made by the employer to the employees employed by such employer in the particular time (month). It is important to understand that SDL is due and payable by an employer.

The gross emoluments are a sum of amount from salaries, wages, payments in lieu of leave, fees, commissions, bonuses, gratuity, any subsistence travelling, entertainment or other allowance received by employee in respect of employment or service rendered.

Where in any case an employer pays emoluments to any employee at intervals of less than a month or at intervals of greater than a month, such payments shall apply as if such employee was entitled to monthly payments and the monthly chargeable emoluments of such employee in respect of any month shall be deemed to be the chargeable emoluments that would have accrued to the employee had the emoluments been payable monthly.


Who is liable for SDL?

Any employer who employs ten or more employees shall pay SDL from gross emoluments.

Applicable rates:

The rate applicable for SDL is 3.5% of the total emoluments paid to all employees during the month. The employee includes permanent employees, part time employees, secondary employees, casual laborers etc.

 Employer’s obligation:

To calculate the amount of the levy and pay the amount to Commissioners account to the respective Tax Region in which such employer is registered.

 The SDL payments shall be made using form ITX 300.01.E - Employment Taxes Payment Credit Slip.

To prepare a monthly return and submit to the TRA office on or before the 7thday of the month following the month of the payroll.

To prepare and remit half year certificate which tally with the monthly returns submitted during the period.

The Skills and Development Levy shall not be charged to: -

  • a Government department or a public institution which is wholly financed by the Government;
  • Diplomatic Missions;
  • The United Nations and its organizations;
  • International and other foreign institutions dealing with aid or technical assistance;
  • Religious institutions whose employees are solely employed to: -
  1. administer places of worship;
  2. give religious instructions or generally to administer religion;
  • Provide public health
  • charitable organizations,
  • registered educational institutions, including-
  1. nursery, primary and secondary schools;
  2. vocational, educational and training schools; and
  3. universities and higher learning institutions.
  • local government authority;
  • intern students from higher learning institutions or technical and vocational education and training institutions who are under the Tanzania Employment Service Agency program;
  • farms employers whose employees are directly and solely engaged in farming and shall not include employees who are engaged in the management of the farm or processing of farming products.

Charitable Organization

Means a resident entity of a public character that satisfies the following conditions:

(a) the entity was established and functions solely as an organization for:

  1. the relief of poverty or distress of the public;
  2. the advancement of education; or
  • the provision of general public health, education, water or road construction or maintenance; and

(b) the entity has been issued with a ruling by the Commissioner under Section 11 of the Tax Administration Act, Cap. 438 currently in force stating that it is a charitable organization or religious organization.


Exemptions for Zanzibar is applicable only from (a-d) and g) above