Profitel Financial Solutions

Frequently Asked Questions

Quick answers to common questions about business registration, tax compliance, penalties, audits, and accounting support.

Is it mandatory to register my business with BRELA and TRA?
Yes. Legally, every business in Tanzania should be registered with BRELA (Business Name or Company Registration) and TRA (TIN). Registration gives legal standing, supports opening a business bank account, and helps with tender applications and compliance requirements.
What are the penalties for late tax filing in Tanzania?
Penalties vary depending on the type of tax and the entity category. Late filing can lead to fixed penalties plus interest on unpaid amounts. The safest approach is to file on time and keep records ready to avoid unnecessary costs.
How can I legally reduce the amount of tax I pay?
This is called tax planning. You can reduce tax liability legally by claiming allowable business expenses, keeping complete supporting documents, and applying relevant incentives provided by law. Proper record-keeping is the foundation of legal tax savings.
What is the difference between a Certificate of Incorporation and a Business License?
A Certificate of Incorporation is issued by BRELA to confirm a company is legally formed. A Business License is issued by the relevant authority to grant permission to operate at a specific location after the required fees are paid.
Does ProfiteL work with small businesses (SMEs) or only large corporations?
We work with businesses of all sizes. We support startups and SMEs with practical packages and also manage complex compliance and reporting needs for established companies.
Which accounting software is best for my business?
It depends on your business model. QuickBooks is often suitable for service-based businesses, while Tally or Sage may be better for more complex inventory or operational requirements. We evaluate your workflow and recommend the best fit.
Can you represent my company during a TRA tax audit?
Yes. We provide professional support during TRA audits, including preparation of required documentation, responses to queries, and guidance to keep the process fair and compliant.