INTRODUCTION OF THE E-FILING SYSTEM AND THE NEW MANDATORY REQUIREMENT OF TAXPAYER IDENTIFICATION NUMBERS NOW FOR ALL EMPLOYEES

Published by KEMILEMBE D. BARONGO

The Tax Revenue Authority issued a public notice on the 6th of August 2020 informing the public stakeholders that it had officially introduced an online e-filing system for all forms of tax returns.

This was followed by an explanatory note on the 18th of August 2020 with regards to the new compulsory requirement for all Employees to have a Taxpayer identification Number (TIN) for remittance of PAYE.

The new e-filing system of the TRA allows filing of both individual and entity tax returns. The filing of returns may be done by an individual e-filer or appointed declarant of the entity.

How is this done?

To assess the new online e-filing system, one must first register as an e-filer (electronic filer of tax returns), for this stage the applicant is only required to have the entity’s tin and the tin of the director/representative.

Then if the applicant chooses to have the returns filed by a declarant, they shall have to appoint declarants who will submit tax returns on behalf of the entity. The entity must also appoint an audit firm and auditors for certification of income tax returns prior to submission to the Tax Revenue Authority. The audit firm must be assigned an audit firm role in the system. The auditor appointed must be registered as an e-filer in order to certify returns in the system.

The applicant can then file tax returns, and income returns through the system.

TIN is now mandatory for all employees

With the new e-filing system, the Tax Revenue Authority (TRA) has made it a necessary requirement for all employees to have (Taxpayer Identification Numbers) so as to enable remittance of PAYE (Pay as You Earn) of each employee online and assessing of the income tax returns.

Due to these changes all employers shall henceforth have to submit PAYE returns that show the taxpayer identification number of each employee and show all the relevant tax deductions.

For all the employees with TIN numbers, the employer shall add such details to the returns to show the taxes that have been deducted for the specific employee and submit the details to the TRA.

The authority has explained that all the employees without taxpayer identification numbers and national identification card numbers shall have to make applications for the TIN through the online TIN registration system available at www.tra.go.tz

And for those without national identification numbers, they shall have to visit the TRA offices around them for taking of bio-metric fingerprints and photos for processing the TIN.

However, employers have currently been instructed to use the number 999 999 999 as the taxpayer identification number for all the employees who do not have the TIN numbers at the time of remitting their Pay as You Earn returns so as to facilitate the payment of the employees’ salaries, this shall be valid till the 31st December 2020.

 

 

 

To view the TRA e-filer user guideline follow this link

https://gateway.tra.go.tz/Efiling/USER%20GUIDE%202012%20[E-Filing%20VAT].pdf