TaxPLUS - The best tool for tax in the Ethiopia (Addis Ababa)
This is to announce that the newly launched (tested for over a year) service TaxPLUS has been launched. This will help all businesses, NGOs, Organizations, etc. to manage their taxes and have ready made government tax forms automatically filled out and ready for tax declaration. All expats in Ethiopia and Ethiopians alike filing their taxes here in Ethiopia are invited to join.
What are included in TaxPLUS (so far)?
> VAT (Value Added Tax) Management
> Purchases Declaration (Purchases Forms)
> Sales Declaration
> Withholding Tax (both 2% and 30%)
> Payroll Sheet (Automatic Payroll Generation)
> Income Tax Declaration (Ready Forms Linked With Payrolls)
> Pension Fund Contribution (Ready Forms Linked With Payrolls)
> Various Reports and Aggregates
> Preliminary Financial Position Report
> Organizational Financial Performance Monitoring
Now, to those (expats and locals alike) that have had difficulties handling the various taxes... this is a major GOOD NEWS.
How does it all work?
Payroll, Income Tax, Pension Fund Contribution
> Employee details is encoded once. Whenever an employee is "Active" (still employed) the system (when requested to) generates payroll, income tax summary, income tax details, pension summary, pension details. Whenever needed, overtime, bonuses etc. can be inserted and the entire payroll and related taxes are automatically updated. The payroll can manually be toggled or adjusted.
WITH ALL THE REST OF THE SERVICES
It's essential details of suppliers/clients is inserted for the system to perfectly work. Once a supplier/client is registered the services below are easy. Since the Ethiopian tax system works with "Reporting Period", with all the rest of the modules the first thing you need to do is generate a "Reporting Period". Then follows other activities mentioned below.
> Select a supplier (details are automatically generated from the details primarily encoded), requests basic details like amount (tax then is automatically generated), date, receipt number (the rest of the details are optional. Once done, the purchase summary is generated in two separate divisions as "Purchase" or as "Service" differentiation as required by the government of FDRE. This automatically generates tax report summaries for declaration.
Purchases can be handled as "Detailed" or as "Summary", summary as in daily summary or monthly summary. The specific summaries (e.g. daily) the better because it will help you monitor your business performance as well. Once the details/summary are inserted the payable taxes are automatically generated without you having the troubles you have been previously facing. This way tax declaration is preliminary ready as this part of the tax declaration is automatically generated.
Another (probably one of the most important features in the system) is VAT declaration (claim and refund included). Businesses, NGO's, entities... all declare and/or reclaim VAT refunds / declarations. This is the most difficult part for manual handling but so easy with TaxPLUS. The sales (mentioned above) and purchases (mentioned above) are already inserted (encoded) thus the VAT declaration almost ready except some check ups and/or some other little info to be encoded. It's almost as easy as clicking one "generate" button, print and go to declare taxes.
> Withholding Tax
Companies and/or organizations withheld some amount from the payees (suppliers, vendors, consultants, etc.) upon payment for product purchase (over birr 10, Protected content services rendered (over 3, Protected content 2% if suppliers have TIN (Tax Identification Number) and are eligible, or in 30% if payees don't have TIN (Tax Identification Number). Once such amount is deducted (a withholding receipt given against the withheld amount) details of the withheld amount are encoded particularly, amount, withholding receipt number (automatically generated but can manually be modified if necessary), date,... and declaration form is ready and you too are ready to declare withholding tax by just printing out the pre-formatted ERCA tax declaration form. Note: details of the payee are automatically because the details have already been inserted on the client/vendor registration in the system.
> Organizational / Business Performance Monitoring and Reporting
Different monitoring and reporting tools exist on the system that make life easy and have a constant followup how the organization/business is doing.
A test account is available for those who might need it or are curious to know. The text account details are:
User ID: amlion.systems
If you have any questions and/or need clarifications, please do not hesitate to ask or inbox.