Taxation Services

Taxation

The Self Assessment System was introduced for companies from the year 2001. Under this system, the directors of a company are responsible to determine their own tax liability and make payment to the IRB.

Tatpayers have to determine their correct tax liability and make payments promptly. That does not mean that the IRB would not examine the return forms at all. A certain percentage of the return forms will be audited. It is very likely that IRB will audit those returns with a high probability of under declaration of taxable income or tax payable and those that are inherently of high risks to revenue.

Companies have to maintain a good record keeping system. This will help in verifying any claims made should the IRB require them to be produced or when the taxpayer are being audited.

A newly commenced company shall furnish an estimated tax payable within 3 months from the date of commencement and payments are made from the 6th month of the basis period.

Company newly commencing operation can furnish any amount that it deems reasonable as the estimated tax payable for that year of assesment so long as the variance between the actual tax and the estimated tax is not more than 30%.