Tax Services
CJ Financial is a properly licensed and registered institution to provide consultancy services and has been registered by Tanzania Revenue Authority (TRA) as tax consultant.
We are tax specialists with the right combination set of taxation skills, experience and in-depth knowledge of the tax laws in Tanzania that provide our clients with an advantage of and total confidence in all taxation matters.
Our Tax Advisory and Compliance Services include:
1. Tax Health Check Review
We conduct tax health check reviews to check general tax compliance in order to provide assurance, or identify areas of potential risks and provide appropriate recommendations for remedying identified risks as per the Income Tax Act 2004, Cap 332 R.E 2019, Tax Administration Act, 2015 and their subsequent regulations.
2. Corporate Tax
Corporate income tax is one of the taxes where non-compliance by Taxpayers is normally noted by the Tanzania Revenue Authority (TRA) during examination, audits and investigations. Non-compliance results in excessive burden to most taxpayers including the commission of criminal offences. As tax consultants, we will ensure that clients comply with Income Tax Act, Cap 332 RE 2019 and Tax Administration Act, Cap 438 R.E 2019 and subsequent regulations. More particularly, we do the following:
- Reconciliation of revenue between Electronic Financial Device (EFD), Value Added Tax Returns and Audited Financial Statements or bank statement where necessary;
- Re-computing revenue based on client’s nature of business;
- Verification of major expenses including cost of goods sold, general administrative and finance expenses;
- Prepare corporate income tax (both deferred and current income tax) for audit provisions and final return;
- File final return of Income within Statutory deadlines;
- Assist in the preparation of Statement of Estimated Tax Payable for each year of income;
- Compute corporate income tax just before year-end to avoid overpayment of tax or penalty due to under-estimation of tax.
3. Value Added Tax
Value Added Tax (VAT) is one of the taxes of focus by Tanzania Revenue Authority. We ensure that our clients comply with VAT Act 2014 and subsequent regulations. Specifically, we do the following:
- Input tax verification as per Sections 67 – 69 of the Value Added Tax Act, 2014 and output tax verification as per section 3 of the Valued Added Tax Act 2014
- Annual reconciliation between sales captured as per EFD, VAT return versus audited financial statements
- In case of any disposal of assets, ascertaining the correctness of the paid output VAT
- Verification of income and categorizing into zero rated, exempt, special relief and standard rated supplies.
- Ensure VAT claims are supported by genuine and authenticated supporting evidence as per Section 86 of the VAT Act 2014.
- Prepare VAT input schedules and file VAT returns within statutory deadlines.
- Conduct VAT refund audit and issue Certificate of Genuineness for filing with TRA.
- Conduct VAT refund audits and issue reports highlighting non compliance issues noted and their proposed remedial action to avoid potential risk for non-compliance.
4. Employment Taxes
If employment taxes compliance is not adhered to, businesses may suffer excessive tax burden from TRA. In this area, we offer the following services in order to ensure full compliance:
- Review payroll computation and establish if Pay As You Earn (PAYE), Skills and Development Levy (SDL), Workers’ Compensation Fund (WCF) and contributions to approved retirement benefit funds are correctly computed and remitted to respective Authorities on a timely manner.
- Ensure all benefits (housing, car, loan benefits, etc.) are included in the computation of payroll taxes.
- Ensure employment tax returns are filed properly on time in the new TRA e-filing system.
5. Withholding Tax
On Withholding Tax, we assist clients in the following:
– Advisory and analysis of all payments to suppliers and service providers that attract withholding tax, these may include:
- Lease agreements.
- Contracts of professional service providers of both imported and local services.
- Dividends from shares on other companies, intercompany and external
- Withholding tax on interest of foreign loans.
- Monthly Withholding tax compliance according to Section 82 and 83 of the Income Tax Act, 2004 RE.
6. Other Tax Advisory services
During TRA tax audits, examination and investigation process or where necessary, we assist our clients in the following ways:
- Cooperate with TRA during tax audits and comprehensively respond to tax audit findings as required by TAA 2015 and subsequent regulations.
- Follow up on TRA feedback on responses to audit findings.
- Object to TRA assessments within statutory deadlines if there are reasonable grounds to do so.
- Follow up with TRA on objected tax assessments.
- Apply to TRA for waiver of interest and penalties.
- Prepare appeal documents and lodge them with respective appellate bodies.
- Update on tax changes brought by Finance Acts and regular newsletters.
- Assist in computing various capital gain taxes to be paid to TRA on a timely manner.
- Create awareness to customers in complying with tax issues to avoid penalties, interest, fines and conviction to imprisonment.