TRA’s Introduces New Integrated Domestic Revenue Administration System (IDRAS) in Tanzania

1. Introduction

The Tanzania Revenue Authority (TRA) has introduced the Integrated Domestic Revenue Administration System (IDRAS) as part of its broader digital transformation agenda. IDRAS is designed to modernize domestic tax administration, enhance voluntary compliance, improve data integrity, and strengthen TRA’s risk-based enforcement capabilities.  The system will start operating on 9th February 2026. Both individual taxpayers and businesses are expected to interact with TRA increasingly through this system.

2. What is IDRAS?

IDRAS is a centralized, integrated digital platform used by TRA to administer domestic taxes. It consolidates taxpayer registration, return filing, tax payments, tax clearance certificates, assessments, exemptions, audits, objections, and enforcement activities into a single system. The system replaces fragmented legacy platforms and manual processes and allow users to undertake tax administration activities online 24/7. This digital platform will be linked to Taxpayers Identification Number (TIN).

3. Key Features of IDRAS

As per TRA, IDRAS has 17 modules, the main ones being:

  • Centralized taxpayer profile and registration (TIN-based)
  • Online filing of tax returns (Income Tax, VAT, PAYE, WHT, SDL, etc.)
  • Integrated payment and reconciliation with banks and mobile money
  • Automated risk profiling and compliance analytics
  • Electronic assessments, notices, and correspondence
  • Audit, objection, and enforcement workflow management etc

4. What Has Changed from the Previous System

Under IDRAS, TRA has moved from transaction-based and manual compliance checks to data-driven, system-based enforcement. Taxpayer information is now cross-referenced across tax types, third-party data sources, and historical filings. This significantly reduces opportunities for inconsistent reporting and increases the likelihood of automated queries and assessments. Other important functionalities include a module to enable issuance of electronic fiscal receipts from IDRAS addressing the challenge of existence of many separate electronic fiscal devices.  It will also enable timely submissions and monitoring of applications such as VAT exemptions, tax refunds and tax clearance certificates applications saving taxpayers time and improving transparency and trust in tax administration.

Overall, Taxpayers and businesses should expect increased transparency and data matching across taxes; faster identification of non-compliance or inconsistencies, greater reliance on electronic records and digital audit trails, shorter response timelines for system-generated notices and reduced tolerance for manual adjustments without supporting documentation.

If properly managed, IDRAS can be used strategically by taxpayers to improve compliance visibility, reduce disputes, and enhance governance. Timely reconciliation, accurate filings, and proactive engagement with TRA through the system is expected to reduce enforcement risks and penalties.

5. Transition and Risks Management

As per TRA, the Online Taxpayer Portal and other current domestic tax sytsems will not be operational from 6th to 8 February 2026 to enable data migration to IDRAS. Thus, Taxpayers should manage the following risks:

  • File returns and make payments of PAYE, SDL and WHT before migration.
  • Keep back up of all filed returns, payment receipts and correspondences with TRA to facilitate reconciliation after migration.
  • Check to see whether your information has properly migrated to IDRAS etc. to avoid incorrect or incomplete taxpayer data migration and legacy errors being carried forward into the new system.
  • Ensure proper reconciliation of IDRAS system balances with accounting records

 

6. How Auditax International Can Help

Auditax International is prepared to help taxpayers use IDRAS effectively by:

  • Reviewing and correcting taxpayer master data in IDRAS
  • Aligning accounting systems (e.g., ERPs) with IDRAS reporting requirements
  • Performing pre-emptive tax health checks and risk assessments
  • Supporting responses to system-generated queries and assessments
  • Representing taxpayers in audits, objections, and appeals
  • Training internal finance teams on IDRAS usage and compliance

Need Support?

If you require support on any of the services listed above or have any questions on its implications to your business, kindly let us know through  info@auditaxinternational.co.tz