1.0 The Introduction
A “Non-Governmental Organization (NGO),” as defined under Section 29 of the Written Laws (Miscellaneous Amendments) Act, (No. 3) 2019 means an institution that is voluntary, self-governing, not-for-profit, apolitical, established (i.e., with regular meetings and rules of procedure); and operating for a public benefit purpose. Such purposes include enhancing economic, social or cultural development, protecting the environment, or advancing good governance, law and order, and human rights etc.
1.1 KEY ADVANTAGES OF REGISTRATION OF NGOs IN TANZANIA
1. Legal recognition: After registration an NGO acquires legal status, can own property, acquire capacity to contract and is capable of suing and being sued. For instance, these advantages in Tanzania have been provided under Regulation 3(3) of the NGO (Renewal and Incentives) Regulations, 2019.
2. Credibility and trust: Registration makes it easier to attract donors, volunteers and partners.
3. Tax benefits: Once an NGO is registered it enjoys tax benefits such as exemption from income tax and exemption of VAT on importation of goods listed under items 7,8,9,10 & 12 of Part 1 and items 6 & 7 of Part II of the Schedule of the Value Added Tax Act, 2019.
2.0 REGISTRATION OF NGOs IN TANZANIA
2.1 Introduction
2.1.1 NGOs REGISTRATION LEVELS
Registration of a Non-Governmental Organization in Tanzania which is governed by Sections 22 & 23 of the Non-Governmental Organizations Act, No.24, 2002 (as amended) together with Regulation 3(1) of the NGO (Rights and Duties of Assistant Registrars) Regulations, 2019 is divided into four levels namely:
1) District Level as per Section 23(1) of the Non-Governmental Organizations Act, No.24, 2002 (as amended)
2) Regional Level as per Section 23(2) of the Non-Governmental Organizations Act, No.24, 2002 (as amended)
3) National Level as per Section 23(3) of the Non-Governmental Organizations Act, No.24, 2002 (as amended)
4) International Level as per Section 23(3) of the Non-Governmental Organizations Act, No.24, 2002 (as amended).
2.2 PROCEDURE FOR REGISTRATION OF NGOs
The registration of a Non-Governmental Organization depends on whether it is a new organization or it was previously registered and it depends on its level of registration. In all instances necessary prescribed forms must be filed together with the sets of documents as prescribed by the rules. Registration is required to be done online, through NGOs Information System (NIS) which is maintained by the responsible ministry. Previously, NGOs could be registered under the Companies Act, Registered Trustee Act and the Societies Act.
3.0 TAXATION FOR NGOs
3.1 Taxpayer Identification Number
An NGO is also required to acquire a Taxpayer Identification Number as provided under Section 22 of the Tax Administration Act, Cap.438 R.E 2019. Procedure of acquiring TIN is provided under the Taxpayer Portal. To procure a TIN number a duly registered NGO must submit prescribed documents to TRA offices within which it is established.
3.2 VAT REGISTRATION
Non-Profit Organizations are not automatically required to register for VAT because they only receive grants for community services.
However, NGOs that engage in investment and business-related activities are guided by these provisions Sections 28, 29 & 90 of the Value Added Tax (VAT) Act, 2019. While NGOs that offer professional service are regulated by Section 29 of the Value Added Tax (VAT) Act, 2019.
3.3 TAXES PAYABLE BY NGOs
Non-Governmental Organizations in Tanzania are eligible to pay the following taxes depending on the circumstances: –
• Withholding Tax for payment of services received.
• Pay as you earn for employees
• Skilled development levy
• Stamp Duty on contracts other Taxes will depend on the circumstance of each …………..
3.4 COMPLIANCES
Non-Governmental Organizations in every calendar ought to comply.
(a) Prepare a report of its activities which shall be made available to the Public, the Council, the Board and other stakeholders;
(b) Prepare an annual audited report and submit copies thereof to the Council and the Board, showing money received and their sources and how they were expanded.