THRDC and TRA Launch Guidebook on Taxation for Non-Profit Organizations in Tanzania

  

THRDC National Coordinator, Onesmo Ole Ngurumwa (second from the right), alongside the Commissioner for Domestic Taxes from the Tanzania Revenue Authority (TRA),  Alfred Mregi (second from the left), unveiled a guidebook on taxation for Non-Profit Organizations (NPOs) in Tanzania. 

The Tanzania Human Rights Defenders Coalition (THRDC), in collaboration with the Tanzania Revenue Authority (TRA), has launched a guidebook on taxation for Non-Profit Organizations (NPOs) in Tanzania.

Speaking at the launch in Dodoma, THRDC National Coordinator, Onesmo Ole Ngurumwa, stated that the idea to prepare and publish the guidebook was initiated during a meeting of NGO directors held in Mwanza in 2019 and was well-received by TRA and NGOs nationwide.

He noted that fines and interest are still imposed by TRA even if an organization has not implemented a project for three consecutive years simply because it has been entered into the tax payment system. This results in organizations accumulating significant tax debts, hindering their ability to serve communities effectively.

Nonetheless, Ngurumwa highlighted the significant contributions of these organizations to society, with 40% in education, 50% in healthcare, and various other sectors such as water, infrastructure, agriculture, and social welfare.

In his remarks, Commissioner for Domestic Taxes from the Tanzania Revenue Authority (TRA), Alfred Mregi, emphasized TRA's commitment to collaborating with all stakeholders to ensure everyone fulfills their tax obligations.

Mregi assured that TRA recognizes the role of NGOs in meeting all legal tax obligations and pledged continued collaboration for the country's development.

He also noted the increasing understanding of taxation issues among Non-Profit Organizations (NPOs) in Tanzania due to tax training sessions and the use of tax newsletters.

Additionally, many civil society organizations face challenges in complying with tax laws, and TRA will continue to collaborate with THRDC and other stakeholders to ensure all NGO groups are reached.

Penina Manyanki, a member of the National Council of Non-Governmental Organizations (NaCongo), welcomed the guidebook, stating that it would help organizations understand their tax obligations without the need for legal interpretation, thus alleviating the burden of tax debts.

The launch of this guidebook marks a significant step towards enhancing tax compliance among Non-Profit Organizations in Tanzania, ensuring transparency, and facilitating their contribution to national development efforts.