TRA has issued a Guideline which clarifies on the taxation of NGOs in Tanzania.
Specifically, the guideline clarifies application of tax laws for NGOs on various matters including the following:
- The requirement to acquire and use EFD Machine for NGOs conducting economic activity and with a turnover of TZS 14 million and above.
- Eligibility criteria for NGOs to pay tax and requirement to file returns of income.
- Treatment of withholding tax including on reimbursable costs on service contracts and the need to obtain proper receipts. The guideline stipulates that where service providers particularly in rural areas do not posses TIN and/or EFD machine, NGOs should ask for manual receipts.
- Applicability of SDL and PAYE on both casual labor and employees.
- Procedures for obtaining exemptions of import duty, excise duty and VAT for NGOs.
- Eligibility, procedures and required documents for application of Charitable Status Ruling.
- The requirement to register for VAT for NGOs offering professional/consultancy services, etc.
Download GUIDELINE ON TAXATION OF NGOs