Tool kit to up tax compliance among CSOs
DODOMA: IN joint efforts to overcome the low tax compliance among the Civil Society Organisations (CSOs) in the country, the Tanzania Human Rights Defenders Coalition (THRDC) in partnership with other stakeholders has launched the taxation tool kit for Non-Profit Organisations in the country.
The document was developed by THRDC in partnership with the Tanzania Revenue Authority (TRA), the National Council of NGOs (NACoNGO) and Wajibu Institute of Public Accountability (WIPA), and financial contribution by the UK Aid funded accountability in Tanzania Programme (AcT2), Ford Foundation, European Union and Sweden.
At the launching ceremony held in the country’s capital, Dodoma, THRDC National Coordinator, Onesmo Olengurumwa said this is the second revised edition of the tool kit.
“The idea of preparing and publishing the first tool kit was brought up during the CSOs directors meeting conducted in the Mwanza region in 2019 and it was well received by TRA and CSOs across the country,’’ he said.
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According to him, ideally, Nonprofit organisations are required to pay taxes and file returns as provided for per the tax legislations and that previous studies and consultative discussions involving over 200 NGOs, representatives from TRA and the Ministry of Finance conducted at different occasions highlighted various challenges faced by nonprofit organisations in complying with tax laws.
It is in the backdrop of this challenge that THRDC in collaboration with other partners decided to come up with the second revised edition CSOs tax toolkit 2024.
According to TRA Principal Tax Management Officer, Maternus Mallya, this simplified guide seeks to enhance knowledge and skills on the legal and administrative aspects to assist nonprofit organisations to become more compliant to the tax laws.
The launched toolkit explains basic requirements for registering with TRA as a taxpayer, the basic legal and practical details of relevant taxes, levies, duties and concessions applicable.
It also highlights common misconceptions by nonprofit organisations under the different types of taxes, duties and levies as well as information on how to become a charitable organization and taxation of such organisations.
Speaking at the launching event on behalf of the Commissioner General, TRA Commissioner for Domestic Revenue, Alfred Mregi expressed the tax watchdog’s commitment to working with all stakeholders in ensuring that every person was complying with tax obligations.
“TRA recognizes the role of CSOs in paying all statutory taxes and I want to assure you that we will continue working together for the development of this country,’’ he said.
