EXEMPTION PROCEDURE FOR NON-PROFIT ORGANIZATIONS (RELIGIOUS AND CHARITABLE ORGANISATIONS)

1.0       Non-profit organization (Religious and Charitable organization)

1.1       Definition

Non-profit organization” means a charitable or religious organization established and functions solely for-

(a) the relief of poverty or distress of the public;

(b) the provision of general public health, education or water, infrastructure;

(c) the supply of religious services; and

(d) relieving persons from the effects of natural calamities, hazards or disasters

  • Legal framework

Tax remission on goods imported by NGO’s into Tanzania is governed by the following laws, provided that, services are supplied,

  1. Without fee, charge or any other consideration in the form of fees.
  2. On payment of any consideration, the fees or charges do not exceed fifty percent (50%) of the fair market value.
  3. Customs Import Duty

      Government Notice Number 205 (GN.205) of 30th June, 2016

  1. Customs Excise Duty (other than Excise Duty on Age)

      Government Notice Number 206 (GN. 206) of 30th June, 2016

  1. Value Added Tax (VAT)

  Value Added Tax Act, 2014 – Item 6, 7 and 8 of Part II to the Exemption Schedule.

  • Application Procedure

The recipient NGO in Tanzania is required to send an application for duty and tax remission to the Commissioner for Customs and Excise, Tanzania Revenue Authority. You are advised to send the application as earlier as possible to have the ruling made before arrival of the goods in order to avoid demurrage charges.

1.4       Mandatory Attachments of the Application

  1. Letter from the head of the organization applying for duty and tax remission or on his/her absence the person acting on behalf substantiating the ownership of the goods
  2. Copy of the registration certificate(s) of the applying organization
  3. Letter from the District Commissioner substantiating the existence of the project in the District in Question
  4. Letter from the Ward Executive Officer substantiating the existence of the project in the Ward in question
  5. Organization’s annual procurement plan
  6. Organizations utilization report accounting for the remission granted during the previous year
  7. Copies of; Bill of Lading/Air waybill/Road Consignment Note, Invoice, Packing List, List of beneficiaries, and donation certificate in case of donation.
  8. Any other relevant information to support the application.
  • Approval letter and notes of assessment (TANSAD) are submitted to Treasury requesting Treasury voucher (applicable for Exemption that requires Treasury voucher).
  • Treasury voucher is issued and is submitted to the Commissioner for Customs and Excise.
  • Goods are cleared from Customs under the normal Customs Clearance process.
  • Letter of approval together with TANSAD is lodged at the entry point