With year end approaching, companies should be preparing for their annual tax compliance. The annual corporate income tax and transfer pricing returns must be submitted by 31 March 2014, with penalties applying for late submission and late payment.Government budgetary deficits have led the tax authorities to focus heavily on tax enforcement and we are seeing more rigorous tax audits and a focus on tax incentives, expense deductibility and transfer pricing. In order to mitigate potential tax and penalty exposures, companies need to beincreasingly diligent with their tax compliance obligations.
Thetax regulations are constantly changing and so is the interpretation andapplication by local tax authorities. In 2013 alone, four new tax laws/amended laws have been issued, in addition to numerous decrees, circulars and a significant number of official letters. This presents a challenging environment in which to stay abreast of developments and the impact to your business.
Companies need to understand the significance of these changes and need to ensure tax filings are correct and effective tax rates are effectively managed. In addition, the approach adopted in prior years tax return may not always be a suitable guide for the current year filing.
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