Purpose
Calculate, review, file and pay corporate income tax and turnover tax completely, accurately and on time using current law and official instructions.
Steps
| # | Action | Details | Evidence |
|---|---|---|---|
| 1 | Confirm CIT and TOT rules | Confirm the current CIT and TOT rules, rates, filing periods, deadlines, payment instructions, exemptions, place-of-supply treatment and required nil returns. Specific items: CIT standard rate of 22% on global profits with deductions for allowable business expenses; export regime or e-zone regimes that can reduce effective CIT to as low as 3% or 0% subject to approval and substance; TOT rate of 6% on domestic supplies of goods and services with exemptions for exported services, certain financial services, and e-zone companies. | |
| 2 | Reconcile tax-control accounts | Reconcile revenue, expenses, assets, liabilities, domestic and foreign supplies, invoices and tax-control accounts to the closed ledger. Proper classification of foreign vs domestic clients is critical for VASPs. | |
| 3 | Prepare CIT calculation | Prepare the CIT taxable-profit bridge, deductions, related-party and transfer-pricing support, provisional return and advance-payment calculations as applicable. The annual CIT return is due within 6 months of year-end; provisional CIT returns and quarterly advance payments are required; transfer pricing principles apply for related-party transactions. | |
| 4 | Prepare TOT returns | Prepare each TOT return from classified supplies and invoices and document exemptions, exported services and other non-standard treatments. TOT filings are monthly with the Tax Inspectorate; invoicing must clearly state if TOT is charged. Monthly filings are required even if nil returns. | |
| 5 | Independent review | Have a person independent of preparation review source data, calculation, rate, classification, filing period, prior balances and payment amount. For a small VASP, dual control and segregation of duties may be simplified but must always ensure integrity and accountability. | |
| 6 | Resolve differences and approve | Resolve material differences and obtain authorized approval before filing or payment. | |
| 7 | Submit filings | Submit through the authorized channel by the current deadline and verify acceptance. Tax filings (CIT, TOT, and payroll) are maintained in full compliance but use digital systems to streamline filing and reduce manual burden. | |
| 8 | Execute payment | Execute payment under dual control, reconcile it to the return and bank record and post the tax entry. | |
| 9 | Retain evidence | Retain calculations, source reports, reviewer evidence, filing receipt, payment confirmation and correspondence. Record retention remains at the statutory 5 years, though documentation can be digital if securely stored and retrievable. | |
| 10 | Track assessments and amendments | Track assessments, amendments, refunds, penalties, objections and adviser or authority questions to closure. |
Evidence
- Current source and filing instruction confirmation
- CIT workpapers, return and advance-payment calculations
- TOT classification, workpapers and monthly returns, including nil returns
- Ledger and tax-account reconciliations
- Independent review and approval
- Filing acceptance and payment evidence
- Assessment, amendment and correspondence log
Escalation
Escalate uncertain tax treatment, missed deadlines, rejected filings, material adjustments, authority disputes, unexplained balances or suspected inaccurate invoicing before submission where possible and immediately after detection otherwise.
Relationships
- Policy: POL-FIN-001 Finance and Tax Compliance Manual
- Process: PRC-RSA-001 Resilience Systems and Assurance
- Reporting procedure: PROC-REG-005 Coordinate Tax and Audited Financial Reporting
- Control: CTRL-FIN-004 Ensure CIT and TOT Are Calculated Filed and Paid on Time
History
- 2026-07-26: Created from sections 3.1, 3.2 and 5.1 of the approved FIN Manual.