Skills and Development Levy: is a levy collected by TRA under the Vocational Education Training Act and Income Tax Act.

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

The gross emoluments is 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 4% 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 7th day of the month following the month of 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) a Government department or a public institution which is wholly financed by the Government;

(b) Diplomatic Missions;

(c) The United Nations and its organizations;

(d) International and other foreign institutions dealing with aid or technical assistance;

(e) Religious institutions whose employees are solely employed to-

        (i) administer places of worship; or

        (ii) give religious instructions or generally to administer religion;

(f) Charitable organizations; or

(g) Local government authority.

(h) Farms employers whose employees 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,

(i) Registered educational Institutions (Private Schools including Nursery,Primary and Secondary schools;Vocational, Educational and Training Schools; Universities and Higher Learning Institutions)


Charitable: Organization means a resident entity of a public character registered as such and performs is functions solely for:

     (a) the relief of poverty or distress of public;

     (b) provision of education or public health; and the Commissioner General is, upon due        diligence making, satisfied that the business conducted by such entity is for public good.”



i. The gross emoluments includes wages, salaries, leave pay, sick pay,pay payment in lieu of leave, fees commission, gratuity,bonuses, any subsistence, travelling or entertainment allowances.

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