The Taxpayers Portal is an online platform provided by the Tanzania Revenue Authority (TRA) that allows taxpayers to access and manage various tax-related services. It enables individuals and businesses to perform tasks such as registering for a Taxpayer Identification Number (TIN), filing tax returns, making payments, applying for driving licenses, registering motor vehicles, and accessing other related services. The portal is designed to streamline tax administration, making it more efficient, transparent, and accessible to taxpayers. Taxpayer portal can be accessed through TRA website or https://taxpayerportal.tra.go.tz/

 

What online services are available on the Taxpayer’s Portal?

The services available on the Portal include TIN application, filing of tax returns, Electronic Cargo Tracking System (ECTS), tax payments, application for a driving license, motor vehicle registration, application for VFD & EFD Error Management Service, and registration for non-resident returns.

How can the Taxpayer’s Portal be accessed?

To access the Taxpayer Portal, please visit the official website of the Tanzania Revenue Authority (TRA) at www.tra.go.tz. The portal is available under the "Online Services" section, where taxpayers can register, file returns, make payments, and utilize various related services. Alternatively, the Taxpayer Portal can be accessed directly at https://taxpayerportal.tra.go.tz 

Is access to the Taxpayer Portal available to all individuals without any restrictions?

The Taxpayer Portal can be accessed by any individual who has a TIN as their username. A new password, which is obtained after updating the original password provided by the system during the initial TIN registration, is also required for access.

 

How can I log into the Taxpayer Portal?

Only an individual TIN can be used to log into the Taxpayer Portal, not an entity TIN. To log in, open the Taxpayer Portal through https://taxpayerportal.tra.go.tz or via the TRA website, click on "Login," then enter your username (which is the registered individual TIN) and your password. Afterward, click the "Login" button.

I have forgotten my taxpayer portal account password. What can I do to get a new one?

If a user forgets or wishes to change their login password, follow these steps:

1. Open the Taxpayer Portal through TRA website or https://taxpayerportal.tra.go.tz/
2. Click on the "Login" link.
3. Click on the "Forgot Password" link.
4. Enter the TIN for which you wish to reset the password and click the "Submit" button.
5. You will receive an OTP on your mobile phone. Enter the OTP in the reset password window.
6. Enter the OTP, new password, and confirm the new password.
7. Submit to complete the password reset.
8. Log into the system using the new password

I am getting an error “Provided the Tax Identification Number or Username does not exist”.

This issue occurs when the user’s TIN is inactive. To resolve the error, please enter your National Identification Number and phone number in the sign-up window. If the problem persists, kindly contact the TRA Call Centre for assistance through 0800 750 075 / 0800 780 078 / 0800 110 016 (Toll Free)

I have requested an OTP multiple times, but I have not received it. What should I do?

When a taxpayer does not receive an OTP, it may be due to a network error, or the phone number intended to receive the OTP may differ from the number registered with the TIN. In the latter case, please visit your nearest TRA office or contact us through our call center’s toll-free numbers (0800 750 075 / 0800 780 078 / 0800 110 016) for assistance.

I am getting a notification that OTP has already being used?

If you receive this notification, it means the OTP has already been used. In this case, you should request a new OTP by clicking the "Resend OTP" button.

Please note that an OTP can only be used once, and you should not share your OTP with anyone once received. 

Does an OTP expire?

Yes, the OTP expires within 3 to 5 minutes from the time it was requested

What are tax estimates, and who needs to file them?

Tax estimates are advance calculations of your taxable income and tax liability for a financial year. Businesses and self-employed individuals are usually required to file tax estimates

 

How are tax estimates calculated?

Tax estimates are calculated based on the expected income, deductions, and applicable tax rates. Guidance is available on the TRA’s Taxpayers portal.

 

When should I submit my tax estimates?

In Tanzania, tax estimates must be submitted at the beginning of the year of income, that is within the first quarter of the respective year of income.

 

Can I revise my tax estimates?

Yes, taxpayers are allowed to revise their tax estimates during the respective year of income, if there are significant changes in income or business performance.

 

What happens if I fail to submit a tax estimate?

Failure to submit tax estimates may result in penalties or the issuance of default assessments by the tax authority.

 

Are there penalties for incorrect tax estimates?

If the estimated tax is significantly lower than the actual tax liability, penalties or interest may apply. It is important to provide accurate estimates.

Who is required to file a tax return?

All individuals and businesses with taxable income are required to file tax returns. Specific thresholds apply depending on the type of income and taxpayer category.

 

How can I file my tax return?

Tax returns can be filed online through the TRA’s Taxpayers Portal, or in person at the TRA office in which the individual or business is registered.

 

When is the deadline for filing tax returns?

The deadlines for filing different types of tax returns are as follows:

1. Returns for SDL, PAYE and all sorts of Withholding taxes: On or before the 7^th day of the month following the month of business.
2. Returns for VAT and Digital Services Tax (DST): On or before the 20^th day  of the month following the month of business,
3. Returns for Excise Duty: On or before the 25^th day  of the month following the month of business,
4. Returns for Income Tax:

• For Corporate Income Tax (CIT), return: Not later than within Six months after the end of the accounting period.
• For Individual Income Tax Return: On or before 30^th June of the year following the year of income.

NOTE: Late filing may result in being subjected to penalties.

 

What documents do I need to file my tax return?

Required documents include your identification (e.g., TIN), income statements (e.g., pay slips or profit and loss statements), and proof of deductible expenses.

 

Can I file a tax return for previous years?

Yes, you can file returns for previous years. However, penalties or interest may apply for late submissions.

 

How can I correct errors in a filed tax return?

Submit an amended tax return through the TRA’s Taxpayer portal or visit your nearest TRA office for assistance.

How can I pay my taxes?

Taxes can be paid through mobile money platforms, bank deposits, or at authorized payment centers.

 

What are the accepted modes of payment?

Accepted methods include electronic transfers, credit/debit cards, mobile payments, and direct bank payments.

 

How can I obtain a payment receipt?

Payment receipts are issued automatically through the online TRA’s Taxpayers portal or can be collected from the TRA office after payment.

 

Can I pay my taxes in installments?

Yes, installment payment plans are available for certain taxes. Contact the TRA office to apply and arrange for a payment schedule.

 

What should I do if I overpay my taxes?

You can apply for a refund by submitting a formal request along with proof of over payments.

 

Are there penalties for late payment of taxes?

Yes, penalties and interest may apply for late payments. It is advisable to make payments by the due date to avoid additional business costs.

What types of taxes am I required to pay?

Taxpayers may be subject to personal income tax, corporate tax, VAT, withholding tax, Excise duty, and other applicable taxes based on their income or activities.

 

What income is taxable?

Taxable income includes salaries, business profits, rental income, investment income, and other earnings, subject to specific exemptions.

 

Are there any tax exemptions or incentives available?

Yes, tax exemptions and incentives may be available for specific sectors (e.g., agriculture, manufacturing) or activities (e.g., investments in special economic zones).

 

How can I check my tax compliance status?
You can check your compliance status online via the TRA’s Taxpayers portal or by visiting your nearest TRA office.

What is a tax assessment?

A tax assessment is the determination of a taxpayer’s liability made by TRA, based either on self-declared returns or through tax audits and other tax verification.

 

What types of tax assessments that can be issued by TRA?

Under Tanzania’s Income Tax Act, 2004, three types of income tax assessments apply:

Self-Assessment

This refers to a tax assessment which:

• Taxpayers calculate their own tax liability and file returns based on their financial records.
• The filed tax return is considered an assessment unless TRA later amends it.
• Most businesses and individuals earning taxable income are required to file self-assessments in terms of tax returns

Adjusted Assessment

This refers to an administrative or Official tax assessment which:

• Is issued by TRA when a taxpayer fails to file a return or when TRA believes the self-assessment is incorrect.
• TRA can adjust income, deductions, or tax payable based on available information.
• The taxpayer has the right to object and appeal.

Jeopardy Assessment

This refers to a proactive tax assessment which:

• Is issued when TRA believes that tax collection is at risk due to possible taxpayer actions (e.g., fraud, closing a business suddenly, or transferring assets to avoid tax).
• Is an immediate assessment issued by TRA to secure revenue before the taxpayer moves the assets.

NOTE: The taxpayer can challenge the Jeopardy assessment, but payments are required to be made first.

 

How can I appeal a tax assessment?

Submit a written objection to the tax authority within the specified period, providing supporting documents to justify your claim.

 

What is the period for appealing a tax assessment?

The appeal period is typically 30 days from the date of the Notice of Assessment. Check the specific rules provided by TRA.

 

Can TRA adjust my self-assessed tax return?

Yes, TRA can review and adjust your self-assessment if discrepancies or errors are identified during audits or inspections.

 

What happens if I fail to respond to an assessment notice?

If no action is taken, the assessment becomes final and enforceable. TRA may impose penalties or initiate recovery proceedings.

 

Can I negotiate or settle an assessment?

In some cases, taxpayers may negotiate or settle tax disputes with TRA through an alternative dispute resolution process.

 

What should I do if I disagree with a tax audit outcome?

File an objection or appeal within the specified time, providing evidence to support your claim. If unresolved, you may escalate to a Tax Tribunal or Courts of law.

What happens if I fail to file my tax return on time?
Late filing may result in penalties and interest. It is important to file by the due date to avoid additional costs.

 

Can I appeal a tax assessment?

Yes, you can appeal by submitting an objection letter to TRA within the specified period.

 

How does the tax authority ensure compliance?

Compliance is enforced through audits, inspections, and data matching. Penalties may apply for non-compliance.

 

How can I report tax evasion?

You can report suspected tax evasion anonymously via the TRA’s hotline or online reporting system.

What are the tax requirements for expatriates or non-residents?

Expatriates and Non-residents are taxed on income earned in the country, subject to applicable Multilateral, Bilateral and Unilateral DTA treaties.

 

How does double taxation relief work?

Double Taxation Agreements (DTAs) prevent individuals and businesses from being taxed twice on the same income by two different countries. The Taxpayer is therefore argued to submit a claim for foreign tax credit with supporting documentation.

What is income tax?

Income tax is a tax levied on the income earned by individuals, businesses, and other entities during a financial year. The recognized sources of income are business, Employment and Investments.

Who is required to pay income tax?

Individuals earning taxable income above the minimum threshold and all registered businesses with profits must pay income tax.

 

How is individual income tax calculated?
Individual income tax is calculated based on taxable income, applying the relevant tax rates as per the income tax brackets.

 

What are allowable deductions for income tax purposes?

Deductions may include expenses such as retirement contributions, insurance premiums, charitable donations, and business-related expenses.

 

Do businesses pay income tax differently?

Yes, businesses pay corporate income tax on their profits, typically at a different rates prescribed by the provisions of the Income Tax Act, Cap.332.

 

When is income tax due?

In Tanzania, the Income tax is due in two main components involving Provisional Income Tax and Final Income Tax

 

i. Provisional Tax (Installment Payments)

Taxpayers must pay income tax in the undermentioned four equal installments based on Estimated Tax Payable for the respective year of income:

• Due dates for the Individuals and businesses who follow the Calendar year:
  • First Instalment: On or before 31^st March of the year,
  • Second Instalment: On or before 30^th June of the year,
  • Third Instalment: On or before 30^th September of the year,
  • Fourth Instalment: On or before 31^st December of the year,
  •  
• The provisional Income Tax component applies to businesses, self-employed individuals, and companies.

 

ii. Final Tax (Balance Payment)

The final tax liability (after deducting provisional payments) is due within six months after the end of the accounting period.

For businesses with a December 31 year-end, the due date is June 30 of the following year.

What is VAT?

VAT is a consumption type of tax levied on the supplies of goods and services at each stage of production or distribution chain.

 

Who is required to register for VAT?

Businesses with annual taxable turnover exceeding the VAT threshold of TZS 200,000,000 (Two hundred Millions) must register. Voluntary registration is also allowed for certain specific economic activities.

 

How is VAT calculated?

VAT is calculated as a percentage of the taxable value of goods or services, applying the prescribed VAT rates of 18% or 0%

 

What does it mean by the terms Input VAT, Output VAT and VAT payable?

These are the key concepts related to how VAT is charged and deducted in the economic supply chain.

i. Output Tax

• This is VAT charged by a registered supplier on taxable goods or services sold to customers.
• It is collected from customers and must be remitted to TRA.
• Example: 
• If a business sells goods worth TZS 1,000,000 at a VAT rate of 18%, the output tax is TZS 180,000.

ii. Input Tax

• This is VAT paid by a business on purchases of goods and services used for its taxable business activities.
• If a business is VAT-registered, it can claim a credit for this tax against its output tax.

Example: 

• If a business buys raw materials worth TZS 500,000 with VAT of 18%, the input tax is TZS 90,000.

 

VAT Payable is the amount of Value Added Tax (VAT) that a registered business must remit to TRA after offsetting input tax against output tax. It represents the tax collected from customers that exceeds the VAT paid on business purchases.

• How is VAT Payable Calculated?

The formula for VAT payable is:

VAT Payable = Output Tax − Input Tax

Example Calculation

• A business sells goods worth TZS 10,000,000 and charges 18% VAT.
• Output Tax = 10,000,000 × 18% = TZS 1,800,000
• The business purchases raw materials for TZS 5,000,000 and pays 18% VAT.
• Input Tax = 5,000,000 × 18% = TZS 900,000
• VAT Payable:
• 1,800,000 (Output Tax) – 900,000 (Input Tax) = TZS 900,000 payable to TRA.
• What If Input Tax is Higher Than Output Tax?

 

• If Input Tax > Output Tax, the excess input tax can be carried forward to offset future VAT liabilities or refunded under certain conditions.

 

• What happens if I fail to file my VAT return on time?

Late filing may result in penalties and interest on the unpaid VAT amount.

 

What is withholding tax?

Withholding tax is a tax deducted at source on specific payments, such as salaries, dividends, interest, rent, and contractor payments.

 

Who is responsible for deducting withholding tax?

The payer of the income (e.g., employer, tenant) is responsible for deducting withholding tax and remitting it to the tax authority.

 

What are the withholding tax rates?

Rates vary depending on the type of payment and whether the recipient is a Resident or Non-resident. For example:

• Dividends: = 10%
• Rent: = 10%
• Professional services = 5%

 

Can I claim a refund of withholding tax?

Yes, if the withholding tax exceeds your actual tax liability, you may apply for a refund or offset it against future liabilities.

 

Are all payments subject to withholding tax?
No, only specified payments under the tax laws are subject to withholding tax.

 

How to get a withholding tax certificate online?

To obtain a withholding certificate online, the withholdee/ withholder should log in to their taxpayer portal account, then follow these steps:

1. Select “Services.”
2. Choose the relevant company.
3. Select “Manage Tax Return.”
4. Select “Withholding Tax.”
5. Choose “Tax Certificates.”
6. Search for the withholding tax transaction.
7. Finally, download the certificate.

What is excise duty?

Excise duty is a tax imposed on specific goods, such as alcohol, tobacco, fuel, and luxury items, either at the production or importation stage.

 

Who is required to pay excise duty?

Manufacturers, importers, or distributors of excisable goods are required to pay excise duty.

 

How is excise duty calculated?

Excise duty can be calculated based on quantity (e.g., per liter or unit) or as a percentage of production value.

 

When is excise duty due?

Excise duty must be paid at the time of production or importation, and monthly returns must be filed on or before 25^th day of the month following the month of business.

 

Are there exemptions from excise duty?
Yes, certain goods or entities may qualify for exemptions under specific conditions outlined in the law.

 

Capital Gains Tax (CGT)

The person who derives a gain on realization of either an investment asset or a business asset is supposed to report such a transaction to the Commissioner General within 14 days from the date of such realization.

 

What is capital gains tax?

CGT is a tax on the profit made from realization of either an investment asset or business asset, such as property, shares, or investments.

 

Who is liable to pay CGT?
A: Any individual or business that earn a gain on realization of either an investment asset or a business asset is liable to pay CGT.

 

How is CGT calculated?
CGT is calculated as a percentage of the net gain (sale price minus purchase price and allowable expenses).

 

Are there exemptions from CGT?

Certain transactions, such as the sale of a primary residence or assets below a threshold value, may be exempt.

 

When is CGT due?

In addition, the CGT is required to be paid within 30 days or such other period determined by the Commissioner General from the date of realization of the respective either an investment asset or a business asset.

What is Digital Service Tax (DST)?
Digital Services Tax is a type of tax that applies to income earned by companies or individuals from providing services online. This includes activities like streaming music or movies, running online marketplaces, offering software or apps, and providing digital advertising. It ensures that even companies or service providers outside a country contribute to taxes if they make money from users in that country.

Example: If you pay for a movie on a streaming platform like Netflix or buy an app on your phone, the platform may have to pay a small tax on the money they earn from you, depending on the rules in your country.

 

What is Digital Asset?
A digital asset is anything valuable that exists in digital form and can be owned, transferred, or traded online. This includes things like cryptocurrencies (e.g., Bitcoin), digital art (like NFTs), and tokens used for online transactions or investments.

Example: If someone buys Bitcoin or a piece of digital artwork stored on the blockchain, that is considered a digital asset.

 

What is Digital Content Creator?
A digital content creator is someone who produces and shares content online to entertain, educate, or engage an audience. This content can include videos, blogs, podcasts, or social media posts, etc. Digital content creators often earn money through ads, sponsorships, or payments from viewers or followers.

Example: A YouTuber who makes tutorial videos or a TikToker who creates funny clips and earns money from ads or fan contributions is a digital content creator.

 

What is considered an electronic service?
Electronic services include services delivered over the internet or other electronic networks. Examples include:

• Streaming platforms for music, movies, and TV shows.
• Downloadable digital products like e-books or software.
• Online gaming platforms.
• Digital advertising services.
• Etc

 

Who is required to register for DST/DCC/DA or VAT on electronic services?

Non-resident electronic service providers or suppliers offering services in Tanzania must register for DST/DCC/DA and/or VAT, even if they do not have a physical presence in the country.

 

How do non-resident service providers register for DST/DCC/DA or VAT?

Non-resident service providers can register online through the Simplified Online Registration Portal available on the Tanzania Revenue Authority’s Taxpayer Portal or as highlighted above.

 

What is the tax rate for DST, DCC, DA and VAT on electronic services?

· Digital Services Tax (DST): 2% of gross payments received.

· Value Added Tax (VAT): 18% of the value of the electronic service provided.

· Withholding Tax on Digital Content Creators (DCC): 5% on payments made to digital content creators.

· Withholding Tax on Digital Assets: 3% on payments to owners of digital asset exchanges or transfer facilitators for transactions involving resident persons.

 

How often must tax returns and payments be filed?

Non-resident service providers are required to file tax returns by the 20th day of the following month for each respective month. Payments must be made by the end of the same month, taking into account international transfer delays of up to five days.

 

Are non-resident service providers required to issue receipts using Electronic Fiscal Devices (EFDs)?

No, non-resident service providers are exempt from using EFDs when issuing receipts or invoices.

 

How should payments be made?

Payments for DST, DCC, DA, and VAT must be made to a central bank account designated by the Commissioner General. All payments are required to be in Tanzanian Shillings. If paying in a convertible foreign currency, the equivalent amount should be determined using the prevailing exchange rate provided by the Bank of Tanzania (available at Bank of Tanzania Exchange Rates) on the date of filing or payment.

 

What are the regulations governing electronic services?

Income Tax Acts – These, along with subsequent amendments, establish the legal framework for taxing income generated from digital and electronic services.

Income Tax Regulations – Outline the registration and compliance obligations for digital service providers, including non-resident service providers.

Value Added Tax Acts – Set the provisions for the application of VAT on digital and electronic services, including registration and tax obligations for providers.

Value Added Tax Regulations – Detail the registration process and tax responsibilities for both resident and non-resident electronic service providers, ensuring VAT compliance.

Finance Acts – Introduce or amend provisions that govern the taxation of digital/electronic services, including Digital Services Tax (DST) and VAT.

 

What should I do if I need help with registration or compliance?

For assistance with registration or compliance, please refer to the user guidance manual or contact us via email, both provided above.

 

Is paying advanced tax allowable?

Under the current regulations, the payment of advanced tax is not permitted. Tax assessments are issued using debit numbers, and payments must be made by generating a payment control number linked to each specific debit number.

 

Is there a threshold for registering for VAT?

No, there is no threshold for registering for VAT on electronic services. All non-resident electronic service providers or suppliers offering services to customers in Tanzania are required to register for VAT, regardless of the value or volume of their services. This applies even if the service provider does not have a physical presence in the country.

 

Am I eligible to apply for the non-resident electronic service if I have a physical presence in Tanzania and hold a municipal business license or a certificate of incorporation?

No, you are not eligible to apply for the non-resident electronic service. If you have a physical presence in Tanzania and are registered with a municipal business license or a certificate of incorporation from BRELA, you are considered a resident for tax purposes. The non-resident electronic service regulations apply strictly to service providers who do not have a physical presence in Tanzania and offer electronic services such as:

• Streaming platforms for music, movies, and TV shows
• Downloadable digital products like e-books or software
• Online gaming platforms
• Digital advertising services

However, certain businesses that operate with a physical presence in Tanzania may still fall within the scope of these regulations. This may occur if the relevant legislation was enacted after their establishment or if they are deemed to meet the criteria under the regulations. In such cases, businesses should consult the Tanzania Revenue Authority (TRA) and the Digital Economy Unit for classification and guidance on their tax obligations.

 

Where can I find more information?

You can access additional details, public notices, and relevant documents through the Tanzania Revenue Authority official website at https://tra.go.tz/ or contact our Digital Economy support team directly for guidance. 

 

How long does it take and what information is required to register and obtain a TIN and VRN certificate for non-resident electronic services?

The registration process is quick and involves filling in basic information about the entity or individual. You will need to provide the following:

• Details of the entity or individual (such as name, address, and contact information).
• Business registration document.
• Certificate of incorporation for your company in your home country.

Once the required information and documents are submitted, you will receive your TIN and VRN certificate after review and approval of your application.

 

What should I do if I haven't received the OTP when starting my application?

Please allow 1-3 minutes for the OTP to arrive before requesting it again. If it doesn't appear, check your spam or junk folder in case it was filtered. If you still haven't received it, kindly contact the Digital Economy Support team for immediate assistance with your registration. Please note that the OTP expires after 15 minutes, and you will need to request a new one if this happens.