Tax

Health Check entails a detailed review of the various taxes that the company is required to comply with including: excise duty, corporate tax, employees’ taxes, withholding taxes, Value Added Tax (VAT), stamp duty and Skills and Development Levy (SDL).

A tax health check will add value to a company because:

• It will assist in identifying areas with great potential tax risk for enhanced focus and thus reduce tax exposure and avoid undue penalties and interest in the future. 
• The exercise will assist in identifying areas with potential strategic tax planning and opportunities that a company can take advantage of and optimize its tax position.
• The exercise will mitigate any surprises in case of a Tanzania Revenue Authority (TRA) audit.
• The exercise will help companies to proactively manage the tax risk
• The exercise will help Basil & Alred tax experts to assess and identify skills gap on the company’s concerned staff for training purposes. Properly trained staff will enhance compliance and therefore mitigate tax exposures and reduce compliance costs in the future.

VAT is charged in accordance with the VAT Act, 2014 on the supply of goods and/or services in Mainland Tanzania and on the importation of goods or services from any place outside Mainland Tanzania.

VAT is accounted for on accrual basis (when the invoice is issued) or when a payment is made which ever time shall be the earliest.

We carry out audits of VAT claims for purposes of issuing certificates to facilitate refunds of VAT in line with the provisions of the VAT Act.

Basil & Alred tax professionals draw on their experiences to assist our clients navigate through the challenges of tax planning and compliance to minimize tax liability that may arise from business deals or from day-to-day activities of their businesses. We also advise on matters relating to structuring of compensation including that of foreign employees (expatriate staff).

The much anticipated Tanzania Transfer Pricing Regulations (“the Regulations”) were publicly released in May 2014. The relevant instrument is Government Notice No 27 (“The Income Tax (Transfer Pricing) Regulations, 2014) published on and effective from 7 February 2014.

How we can help you:

• Strategy and policy development
• Governance optimization and decision making process to help:

1. Reduce impact of year-end adjustments
2. Monitor transfer pricing footprint
3. Coordinate across organization

• To provide assistance to support transitions to new documentation requirements

We provide an annual budget review immediately after the Annual Budget which is aimed at giving our clients an over view of the proposed changes and how they impact on various industries and the environment within which our clients operate. Thereafter any follow procedures aimed at assisting a specific client or industry to understand or implement the changes can be arranged at the request of the client. Such training would be tailored to meet the specific needs of the client or industry. We also hold seminars from time to time on tax issues.

Basil & Alred also carries out tax training services which are aimed at minimizing possible tax exposure. The service has proved to be very useful to our client as it ensures that finance staffs in an organization are well trained to make decisions on the correct tax treatment of various transactions.