Guide To Completing Taxpayer Registration Form

In compliance with the provisions of sections 35, 158 and 169 of the Revenue Act 72/2016 of 16/07/2016 and the relevant provisions of the Ministerial Decree determining the modalities of application of Revenue Act stated above, all businesses including employers are required to register and obtain a Taxpayer Identification Number.

All persons liable to pay tax are required to register with the Inland Revenue Department (IRD). This form is used to register a taxable person operating in Somaliland. These include organisations who are required to withhold employment income tax from the salaries paid to their employees. It is used  both  by  Individual and  Non-individual  businesses.    An  individual  business  means  a  non- incorporated sole owner while a Non-Individual includes entities such as corporations, private limited companies, partnerships, associations, government bodies, non-governmental agencies, project offices, international agencies, and similar non-individual persons subject to tax.

You are required to register before commencing any kind of business and apply for a Tax Identification Number (TIN) and get a Taxpayer Identification Number Certificate. The Tax Identification Number Certificate is cost free. The application for a TIN is made at the IRD- Registration Office located in Hargeisa or the nearest Regional Tax Office.

Without accurate information, the registration process will be delayed and/or you may experience delays in receipt of TIN Certificate or other services. If you require further information please contact the IRD, the central taxpayer registration office (Phone) 0633240001, IRD website… or visit the nearest Regional Office. In case of Modification or changes in the Business Details use a Taxpayer Registration Modification Form- 03 available in IRD Office and Website or the nearest IRD office. There are fields provided on the form that you are required to fill. Check the boxes and fields that best indicate the type of your business and briefly describe the activities of your business

  1. 1. An individual business-completes SectionA1andA2asappropriate together withall parts of Section
  2. 2. A Non-Individual business-completes SectionA1 andA3asappropriatetogether withall parts of Section

Complete ALL sections and subsections of this form as required. (*) denotes a required field. Complete all provided fields in BLOCK LETTERS, sign the declaration below (SECTION C) and return it to Taxpayer Registration Office or the IRD Regional Office.

The registration form has the following four main Sections:

SECTION A - Taxpayer’s Identification

A1 - General Details: Details common to both Individuals and Non-Individuals. This is mainly the Legal Status of the person and Type of Juridical Person.

A2 - Physical Person Details: Give the details of the person being registered: names, gender, etc. If you are an individual, be sure to enter correctly all your names (First name, Middle Name and Last Name). If your business is known by a trading name other than the legal name, enter that name in the space provided.

A3 - Non-Individual Details: Non individual details means the details of your business.   Give the details of your registered business name, nature of the entity, Business name, etc. Enter the legally registered name of your company or other type of business entity.

A4. Name of shareholders:  write down at least four details of your shareholders which includes; names, business phone numbers, amount of share capital, city or country where the shareholders reside and their TIN in case they have other businesses

SECTION B - Activity related fields common to both Individual and Non-Individual Enterprises.

B1 - Business related details: sector of activity, bank account, accounting regime, source of income, etc. Indicate the estimated annual gross income of the business. Indicate also the number of employees (on permanent and temporary basis) that the business or organization would have employ during the year.

B2 - Registered Office Address: where all the correspondence from IRD will be sent. The complete physical address of the principal place of business is required.

B3 - Business Activities: These are filled based on the business classification provided by IRD. Please check the business classification and select the sector based on your business activities, if your business does more than one activity, you can also select more sectors that fits your business

B4 - Bank accounts used in Business: Details of the different bank accounts of the business

B5 - Enterprise Branches: list your business branches within or outside Somaliland. The branches within the country. Specify their addresses in the spaces provided.

B6 - Related Persons: These are other independent entities. These are other independent entities that are related to the person being registered. They might be domestic or foreign.

B7 - Tax types to pay: Type of taxes subject to pay tax based on the types of business activities performed. Check the relevant boxes as follows:

  1. 1. Employment income tax: Check this box if you pay yourself or employees any  income  derived from  employment which  includes  the  following: any wages, salary, leave pay, payment in lieu of leave, overtime pay, fees, commission, gratuity,  bonus,  or  the  amount  of  any  travelling, entertainment, utilities, cost of living, housing, medical, or other allowance.
  2. 2. Corporate income tax: Check this box if business is incorporated and registered as a corporate company, trust or retirement fund. Should also be completed by non-individuals who are partners in a partnership busine
  3. 3. Individual income tax: (sole trader or proprietorship) Check this box if the business entity is owned and run by one natural person and when there is no legal distinction between the owner and the busine When the owner is in direct control of all elements of the business and is legally accountable for the finances of such business. Should also be completed by individuals who are partners in a partnership business.
  4. 4. Rental income tax:  Check this box if you are an individual and receive or earn rental income from renting immovable property (land and buildings) in a ye
  5. 5. Withholding tax on capital, investment, loans dividends and service fees,: check this box  if you are the payer of    dividends to resident shareholders, or payments to non-residents for contracts or professional services or who are entertainers or sportspersons, or you supply goods and services to the Somaliland Governmen
  6. 6. Provisional tax: check this box if you receive income that is not subject to tax deduction at source. This will include all business income earned by individuals, corporate companies, trustee and retirement fund
  7. 7. Goods and service tax: Check this box if you import or manufacture goods or provide (a) electricity, (b)  telecommunication  services,  (c)  water  services,  (d)  hotel,  board  or  lodging services, (e) restaurant services, (f) sale of tickets for international transport services, (g) travel agency/arrangement services or (h) sporting/game arrangement services AND your annual income from the provision of such goods or services is equal to or in excess of five (5) million Somaliland Shilling
  8. 8. Excise tax: Check this box if you import or manufacture (a) earths, stone and asbestos products, (b) tobacco or tobacco products, (c) cosmetic aids (other than soap, toothpaste, toilet tissue and disinfectants), (d) non-alcoholic beverages, (e) luxury automobiles (more than 4,000 cc or value over $US 20,000), (f) jewellery, precious stones or precious metals, or provide telecommunication service

If the applicant is a corporation or a partnership, all the names of the shareholders or partners have to be indicated. Provide also the name and contact details of the person selected within the business or organisation as the IRD contact person on matters patterning to taxation and on how that person can be reached.

SECTION C - Certification.

After completing the form at this level and you believe that information provided is correct, please put your phone number, location or place and sign the form. “I declare that the particulars supplied in this application are true and correct”. This declaration represents a commitment of the person completing the form.

Please ensure an authorised person signs the declaration. An authorised person is a proprietor, partner, or an individual duly authorised by the organisation or company.

SECTION D - Space Reserved to the Tax Administration

Determine the appropriate Tax Segment

Check the appropriate Tax Center

Write down on the form the assigned Tax Identification Number

Checkout the boxes of documents received as attachments to the registration form and put them in the taxpayer’s physical file.