Registration With Tax Authority When Starting A Business


What do you need to do when you want to start a business?

Individual


An individual whether resident or non-resident is required to visit a nearby Tanzania Revenue Authority (TRA) office (regional, district, or tax centers) and fill Tax Identification Number (TIN) application form to apply for TIN. If the individual has National Identity Number (NIN) the application can be made online by visiting the TRA Website (www.tra.go.tz), selecting Online TIN Registration, and following the steps as the system directs. However, if the individual is requesting Business TIN, the Online TIN applicant must visit the physically nearby TRA office (having a Lease Agreement/Title Deed, Introduction Letter from Local Authority) to collect TIN Certificate and provisional tax assessment and Tax Clearance).

After obtaining the TIN certificate the applicant will be required to apply for a business license from the Trade office in the District, Municipal, City, and the Ministry of Trade and Industry depending on the type of business.

Who is a Resident Individual?


A person qualifies to be a resident in the United Republic of Tanzania when:-

  1. Has a permanent home in the United Republic and is present in any part of the year of income.
  2. Is present in the United Republic during the year of income for a period or periods amounting in the aggregate to 183 days or more.
  3. Is present in the United Republic during the year of income and in each of the two preceding years of income for periods averaging more than 122 days in each of such years of income.
  4. Is an employee or an official of the Government of the United Republics posted abroad during the year of income?

Certificate of Registration:


An individual may opt to register the business name to the agency commissioned by the Ministry of Trade and Industry known as the Business Registration and Licensing Authority (BRELA). The registered name can be obtained before or after the application for TIN. The registered business name shall be indicated on the TIN certificate together with an individual’s name showing the owner’s name trading as (T/A).

Registration With Tax Authority When Starting A Business

A Corporation (Limited Company)


Starting a corporation requires a person to apply for the Certificate of incorporation from the Business Registration and Licensing Authority (BRELA). The Directors of the company are required to draw a Memorandum and articles of association and submit the certificate of incorporation, lease agreement/title deed, and introduction letter from the local authority. The Certificate of incorporation shall be attached to the TIN application enclosed with the Memorandum and Articles of Association when a person makes an application to TRA.

The limited company shall apply for a TIN certificate by filling out TIN application forms as follows:

  • Application for the company.
  • Application for each shareholder/director, in case any director has already been issued with TIN certificates for another purpose he/she cannot make another application. The same TIN number will be used.
  • For non-citizens, directors are required to fulfill all immigration procedures and obtain business permits from the Immigration Department working under the Ministry of Home Affairs.

Partnership

  • The partners have to register for the firm at BRELA and acquire the certificate of registration. After being issued with the certificate the partners visit TRA along with the partnership deed which shows the number and names of partners with their respective distribution ratio.
  • In applying for TIN, the partnership firm shall apply for its certificate by submitting a copy of the certificate of registration obtained from BRELA, partnership deed, lease agreement/title deed, and introduction letter from the local authority.
  • Each individual partner shall apply for TIN, in case any partner has already issued with TIN certificate for another purpose he/she cannot make another application. The same TIN will be used.

Trust

Trust is an arrangement under which the trustees hold assets but excludes partnerships and a company. A trust has to register for the firm at RITA and acquire the certificate of registration and draw a trust deed that shows the names and addresses of trustees. Each trustee shall apply for a TIN, in case any trustee has already been issued with a TIN certificate for another purpose he/she cannot make another application. The same TIN will be used.

Important Notice:


This publication has been prepared for general guidance on matters of interest only and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication, and, to the extent permitted by law, MAK Africa Legal its members, employees, and agents do not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it.

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