TRA Tax Administration Twinning

Description What is done in the programme or project and why, what results are pursued, who benefits from the activities and who are involved in the implementation.

Good tax policies and effective tax collection can promote the development of an equal society. Tanzania is reforming its tax administration based on a new five-year development plan (TRA 5th Corporate Plan). Finland will, during the years 2017-2021, provide core support amounting to four million euros to the Tanzania TRA five-year development plan's basket fund (TMP). In addition to the core support, Finland considers it important to strengthen the capacity of the Tanzania Revenue Authority (TRA) to implement the necessary reforms by providing technical assistance to TRA through Finnish Tax Administration (VERO) especially in order to increase tax compliance . Finnish Tax Administration will support TRA 1) to improve implementation of measures supporting better tax compliance of business taxpayers, with particular focus on voluntary tax compliance, 2) to improve understanding of customer needs and a strengthened TRA service culture, 3) strengthened approach and management of TRA internal audit. VERO’s technical support to TRA will be one million euros during the years 2018-2021. Additional contribution amounting to 230.000 euros will be provided to the cooperation aiming at 4) to strengthen TRA capacity to prepare for the implementation of the comprehensive tax administration system.