Are You a CEO of a Company That Has Not Yet Started Operations Since was incorporated? Here are What You Need to Know.

Are You a CEO of a Company That Has Not Yet Started Operations Since was incorporated? Here are What You Need to Know.

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akwilau

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Today, you may be asking yourself numerous questions that are giving you headaches without clear answers. Questions like:
  • Why is TRA sending me tax assessments with interest and penalties when my company hasn’t even started operations?
  • Why does TRA keep reminding me every year to file an annual return while the company is still dormant?
  • Why is BRELA reminding me to file a return for a dormant company?
As a CEO, do the following to save your company from endless accumulation of interest and penalties:
  • Section 117(1) of the Income Tax Act, Cap. 332 (R.E 2023) requires you to file an annual return every year regardless of whether the company is in operational or not. Ensure you file a nil return for any year in which the company has not conducted any operations. Ensure that your nil return is accompanied by a letter explaining why you're filing a nil return.
  • For institutions such as the Workers Compensation Fund (WCF), the National Social Security Fund (NSSF), OSHA, and the municipal councils, be sure to write a letter informing them that your company has not yet started operations. This will help you avoid being billed as if the company is in operational.
  • BRELA, you are still required to file the annual return as usual with the registrar. However, in the section that requires you to attach audited financial statements, instead attach a letter explaining why the audited financial statements are not available.
  • Many CEOs mistakenly believe that since their companies haven’t started the operations yet, they are not obligated to report to the regulatory institutions overseeing their companies by provide updates on their company’s current status.
  • Comply with the regularities to avoid unnecessary interest and penalties for the survival of your company.
HALA Consultants
Certified Public Accountants
[email protected]
0752187434
 
Tunashukuru kwa darasa zuri.
Naomba kuuliza swali! Je kama nimelipwa interest inayotokana na kucheleweshwa malipo napashwa kulipa VAT au ni Corporate tax tu?
 
pembe said:
Tunashukuru kwa darasa zuri.
Naomba kuuliza swali! Je kama nimelipwa interest inayotokana na kucheleweshwa malipo napashwa kulipa VAT au ni Corporate tax tu?
Click to expand...
Asante sana kwa ujumbe wako.

Hiyo interest uliyoipokea imetokana na nature ya biashara unayoifanya, as longer hiyo biashara yako ni taxable supply kwa mjibu wa kifungu namba 3 (1) Sheria ya Kodi ya ongezeko la thamani inatakiwa kuchajiwa VAT.
 
akwilau said:
Today, you may be asking yourself numerous questions that are giving you headaches without clear answers. Questions like:
  • Why is TRA sending me tax assessments with interest and penalties when my company hasn’t even started operations?
  • Why does TRA keep reminding me every year to file an annual return while the company is still dormant?
  • Why is BRELA reminding me to file a return for a dormant company?
As a CEO, do the following to save your company from endless accumulation of interest and penalties:
  • Section 117(1) of the Income Tax Act, Cap. 332 (R.E 2023) requires you to file an annual return every year regardless of whether the company is in operational or not. Ensure you file a nil return for any year in which the company has not conducted any operations. Ensure that your nil return is accompanied by a letter explaining why you're filing a nil return.
  • For institutions such as the Workers Compensation Fund (WCF), the National Social Security Fund (NSSF), OSHA, and the municipal councils, be sure to write a letter informing them that your company has not yet started operations. This will help you avoid being billed as if the company is in operational.
  • BRELA, you are still required to file the annual return as usual with the registrar. However, in the section that requires you to attach audited financial statements, instead attach a letter explaining why the audited financial statements are not available.
  • Many CEOs mistakenly believe that since their companies haven’t started the operations yet, they are not obligated to report to the regulatory institutions overseeing their companies by provide updates on their company’s current status.
  • Comply with the regularities to avoid unnecessary interest and penalties for the survival of your company.
HALA Consultants
Certified Public Accountants
[email protected]
0752187434
Click to expand...
Very educative, kuna millions of companies zipo kwenye shimo hili la fines na penalties bila ya wao kujua, baada ya ten years unashangaa tra wana block account na pesa zako unaambiwa unadaiwa bilioni huelewi imekuwaje
 
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