Tax Compliance Features

TRAM (our AI-native tax engine) proactively catches changes in tax law to ensure our tax determinations and rates are always kept up to date. E.g. SaaS is becoming taxable in Manitoba on Jan 1 2026 > TRAM flags this; suggests adjustments to impacted tax determinations > our tax team reviews sources / citations > with one click our tax engine is updated. Historically, companies and competing tax engines would have teams of tax researchers using tools like CCH Connect or going straight to government sources, trying to figure out how the law change impacts their product catalogue and then manually adjusting determinations and rates. This is now largely automated (with an expert reviewer in the loop) with TRAM. What that means is: 🔮 Proactive adjustments to determinations and rates (vs reactive; i.e. you want to catch changes before it's too late!) 🌍️ Ability for TRAM to keep up with changes across all product categories in all jurisdictions (which would be utterly impossible if you were doing it manually) 🔍️ Greater accuracy on determinations (as TRAM is trained on feedback from many tax experts) The future of domestic and cross-border compliance is AI-powered and TRAM is at the cutting edge.

As businesses in the UAE prepare for corporate tax compliance, closing the books of accounts effectively and in alignment with regulatory requirements is essential. Here are 12 key focus areas to ensure accurate financial reporting and compliance under Federal Decree-Law No. 47 of 2022: 1.     Classify Correctly: Ensure proper categorization of taxable income, exempt income, deductible expenses, and other exemptions. 2.     Revenue Recognition: Align revenue recognition practices with IFRS 15 (Revenue from Contracts with Customers) to maintain compliance and consistency. 3.     Reconcile Revenues: Cross-check revenues reported in financial statements with VAT and corporate tax records to eliminate discrepancies. 4.     Validate Expenses: Verify that all expenses are documented, business-related, and distinguish between deductible and non-deductible expenses (e.g., fines, penalties, personal expenses). 5.     Intercompany Transactions: Review related-party transactions for compliance with Transfer Pricing Regulations and maintain a Local File and Master File as required. 6.     Provisions: Accurately account for provisions such as bad debts, gratuity, and leave salary, adhering to both accounting and tax regulations. 7.     Tax Losses: Document carried-forward tax losses effectively to offset future taxable income, within permissible limits. 8.     VAT Reconciliation: Cross-check VAT returns with financial statements to ensure accurate reporting and identify transactions impacting corporate tax. 9.     Related Party Disclosures: Disclose all related-party transactions in compliance with UAE Corporate Tax Law and adhere to arm’s length pricing principles. 10.  Profit/Loss Adjustments: Reconcile book profits with taxable profits by incorporating necessary adjustments for corporate tax purposes. 11.  Stay Updated: Regularly update accounting records to reflect changes in tax laws or guidelines issued by the Federal Tax Authority (FTA). 12.  Documentation: Maintain robust documentation to ensure readiness for audits and support compliance with corporate tax requirements. By focusing on these key areas, businesses can streamline their tax compliance process, minimize risks, and achieve accuracy in their financial reporting. #CorporateTax #UAE #FinancialReporting #Compliance #TaxPreparation #IFRS #IFRSforSME #Audits

Enhancements to iTax- VAT Obligation Registration Changes: -VAT approval is now separate from other registration tasks (e.g., PIN changes, director updates). -New menu for applying for VAT obligation. Validations added: -eTIMS onboarding status required. -Active Tax Compliance Certificate (TCC) required. -Directors of companies must have valid TCCs. -Checks for associated businesses in VAT special table. -Document upload list provided. PIN Checker Enhancement: -Now shows Tax Service Office (TSO) where PIN is domiciled. -Available on iTax portal, KRA M-Service App, and USSD (*222#). Reorganization of Registration Menus: -Improved UX with grouped and renamed menus (e.g., Taxpayer Profile, ------Amend PIN Details, VAT Application, Excise, Withholding Tax, etc.). New Standalone Menus: -Update Contact Details (with OTP validation). -Change Accounting Period/Year-End. Data Privacy Update: -Parent/spouse details disabled in taxpayer profiles. MRI Property Registration: -Redirect from iTax to eRITS for property registration/updates. Foreign PIN Applicants: -API for non-resident investors to apply via Kenya Investment Single Window (KISW). Overpayment & Instalment Adjustment Vouchers (OAVs & IAVs): -New workflows for applying and approving vouchers. -OAVs can offset most taxes except PAYE, VATWHT, WHTIT, WHTRENT. -IAVs offset future instalment payments only. Income & Expenses Validation: -Cross-checked with eTIMS invoices, withholding tax data, and import records (effective Jan 1, 2026). -Exceptions under Tax Procedures Act and Regulations apply. Amendment of PIN Without Obligation: Fixed issue where fields were greyed out. Obligation Cancellation Errors: Resolved system errors during cancellation requests. Turnover Tax Cancellation: Fixed misleading pop-up message. MRI Returns Amendment: Resolved property registration-related errors preventing return amendments.

Over the last quarter, 20+ businesses have come to us for guidance after receiving noticed for sales tax audits. This isn’t a coincidence. Sales tax audits are increasing, especially within e-commerce. States are increasing their efforts to find non-compliant businesses. It's been almost 7 years since the Wayfair decision, and states aren’t as lenient as before. Audit task forces are growing in high-population states like California, Texas, and Illinois. And since sales tax revenue funds budget items, states have a vested interest in closing the gap between the taxes owed and the taxes paid. Pre-audit questionnaires are also becoming more common. States are sending them to businesses, even if they haven't registered, requesting up to 3 years of sales data. And on top of all this, states are working together—sharing business information, making it easier to find non-compliant sellers. So if you’re non-compliant in one state, you may be caught by another. Staying compliant across every state you sell in is more important than ever. You might be subject to an audit if:  → You've failed to register and remit sales tax → You report high amounts of sales tax immediately after registering → You're connected to other vendors or customers being audited The penalties for non-compliance are high and getting stricter. In some states, penalties can be as high as 39% of taxes owed. My advice to ensure compliance: 1. Stay on top of it—once you’ve reached the nexus threshold in a state, register and file.  2. Partner with an expert or use sales tax software to help you keep track of changes. 3. If you’ve been non-compliant for some time, a Voluntary Disclosure Agreement could help reduce penalties and liability. States aren’t playing around, and they will come knocking. The cost of non-compliance far outweighs the effort of staying on top of your sales tax obligations. If you have any questions about staying compliant, shoot me a message—happy to help.

Usage-based pricing is the future of SaaS. It's also a sales tax compliance nightmare nobody warns you about. Here's the problem: Traditional subscriptions are simple for tax. Customer pays $99/month. Same price, same tax, same jurisdiction. Every month. Usage-based pricing? Complete opposite. Every transaction is different: - Variable charges based on consumption - Mid-cycle upgrades and downgrades - Credits applied to accounts - Overages that spike usage - Prorated billing periods - Different rate tiers kicking in And every single transaction needs an accurate tax calculation. Not once a month. Every time usage changes. Here's where it gets messy: Most tax providers were built for fixed subscriptions. Predictable billing cycles. Clean monthly invoices. They weren't built for modern usage-based models where charges fluctuate daily based on API calls, seats, storage, or compute. Your billing platform (Orb, Maxio, Stripe Billing) handles usage tracking perfectly. But your tax provider? It's choking. So finance teams start doing manual workarounds: - Exporting usage data to CSV - Calculating tax in spreadsheets - Uploading adjustments back - Praying everything reconciles at month-end Or worse, they guess. Apply flat rates. Hope it's close enough. Neither approach scales. Both create massive audit risk. States don't care that your billing model is complex. They want accurate tax collected on every transaction. This is why many SaaS companies delay moving to usage-based pricing even though it's better for customers and revenue. The billing side works. The compliance side doesn't. Plus, Kintsugi just added native integrations with Orb, Maxio, Ordway, Rillet, and Sage Intacct—the modern billing platforms built for usage-based pricing. If you're running variable billing, compliance now actually works: - Tax calculations happen automatically on every usage event - Mid-cycle changes get taxed correctly - Credits and overages are handled in real-time - Everything reconciles without manual exports No more CSV gymnastics. No more spreadsheet tax calculations. Usage-based pricing is where SaaS is headed. Your compliance infrastructure needs to keep up. https://lnkd.in/gad_RF4v #KintsugiPartner

A founder who’d been putting off sales tax, like so many others, finally decided to check her exposure. She wasn’t behind on revenue, or growth, or hiring. She was behind on compliance visibility and just three minutes into the process, the results loaded. Dozens of states, thresholds crossed, clear lines drawn where she owed tax. Her response was: “I just spent 3 minutes on the platform and I already understand my sales tax exposure. This tool is a godsend." We hear this story often from founders and finance leaders who have built systems for everything except the one thing no one talks about until it’s urgent: visibility into compliance. They’re exceptional operators. They know their margins, their forecasts, their hiring plans. But when it comes to sales tax, most admit they’re guessing. Every jurisdiction has its own version of nexus, a threshold that determines when you have to register and collect tax. In the U.S., those rules shift state by state, sometimes even county by county. Internationally, they take the form of VAT or GST, each with its own filing requirements. The rules were never designed for the way modern businesses grow. There’s no alert, no reminder, no notification when you cross a threshold. You just grow into new markets, ship to new customers, and suddenly you’re left wondering where the obligations begin and end. That question, Where does my business owe tax? Is exactly what the Kintsugi's Nexus Study helps answer. It’s a free exposure assessment that shows where you’re likely required to register, collect, or file. Go from confusion to clarity in minutes with four simple steps: 1. Connect your sales data. Secure integrations with Shopify, Amazon, Stripe, QuickBooks, Chargebee, and more. All data is handled under SOC 2 Type II and GDPR standards. 2. Automated analysis. The platform reviews every transaction, validates addresses, classifies products and services, and identifies where thresholds have been crossed. 3. A clear report. You receive an audit-ready view of the states, provinces, or countries where you likely owe tax. 4. Expert guidance. Kintsugi’s tax specialists walk through your results and help you plan next steps with no contracts, and no upsells. Most providers charge thousands for this kind of analysis. We made it free, because clarity shouldn’t depend on budget or timing. We’ve seen how much anxiety disappears once teams know where they stand. The unknown is always heavier than the work itself. Map your entire sales tax, VAT, and GST exposure in five minutes. No credit card required. Prevent costly penalties and audits by monitoring your multi-state and international exposure. Stop flying blind on nexus… Run your free Nexus Study today: https://lnkd.in/gJVvg4Pg

Your sales tax solution should be exactly like your underwear: 𝗶𝗻𝘃𝗶𝘀𝗶𝗯𝗹𝗲. It should offer such perfect complete coverage and support that you should forget it’s even there. That’s Numeral. D2C sales tax isn’t optional, but most brands are only halfway covered. If you’re on Shopify, "Shopify Tax" handles calculation and offers some basic auto-filing. That’s a start, but it’s not the whole game. The problem is 𝗰𝗼𝗺𝗽𝗹𝗶𝗮𝗻𝗰𝗲, which most teams still handle manually or with an outdated legacy tool. This includes:   • 𝗥𝗲𝗴𝗶𝘀𝘁𝗿𝗮𝘁𝗶𝗼𝗻𝘀: You still have to manually register for permits in every new state where you hit nexus.   • 𝗙𝗶𝗹𝗶𝗻𝗴𝘀 & 𝗡𝗼𝘁𝗶𝗰𝗲𝘀: Shopify might file a return, but they won't receive and scan your tax mail and respond to state correspondence for you.   • 𝗧𝗵𝗲 𝗠𝘂𝗹𝘁𝗶-𝗖𝗵𝗮𝗻𝗻𝗲𝗹 𝗚𝗮𝗽: Most native tools only have access to their own data. They don't account for your sales on other channels like Amazon, TikTok Shop, or wholesale, meaning your nexus tracking is likely inaccurate. We recently migrated Underwear Expert and several brands from my consulting company portfolio to Numeral. The main reason we avoided switching for so long is that fixing tax problems is notoriously time-consuming. But legacy software just wasn't built for the modern DTC stack. 𝗪𝗵𝘆 𝘄𝗲 𝗰𝗵𝗼𝘀𝗲 𝗡𝘂𝗺𝗲𝗿𝗮𝗹:   • 𝗪𝗵𝗶𝘁𝗲-𝗚𝗹𝗼𝘃𝗲 𝗠𝗶𝗴𝗿𝗮𝘁𝗶𝗼𝗻: They handle the heavy lifting of the move for you.   • 𝗧𝗵𝗲 𝗚𝘂𝗮𝗿𝗮𝗻𝘁𝗲𝗲: Your sales tax is filed on time, or they pay your penalties and interest charges.   • 𝗙𝘂𝗹𝗹𝘆 𝗠𝗮𝗻𝗮𝗴𝗲𝗱: It’s a dedicated compliance partner, not a DIY software portal. (While this post is sponsored, our decision to use Numeral was made independently prior to any partnership.) Compliance shouldn’t be a manual project you have to babysit; it should be a silent utility that stays out of your way while powering your business in the background. 𝗖𝘂𝗿𝗶𝗼𝘂𝘀 𝗵𝗼𝘄 𝗼𝘁𝗵𝗲𝗿 𝗼𝗽𝗲𝗿𝗮𝘁𝗼𝗿𝘀 𝗮𝗿𝗲 𝗵𝗮𝗻𝗱𝗹𝗶𝗻𝗴 𝘁𝗵𝗶𝘀: Are you confident your sales tax setup would just work if you stopped thinking about it tomorrow?

VAT & Tax Compliance Checklist for Accountants in Bangladesh: 1. VAT Return Preparation ▪️ Collect all VAT Challans & Mushak ▪️ Match purchases & sales with invoices ▪️ Fill up Mushak 4.3, 6.3, 6.6, 9.1 (as applicable) ▪️ Submit VAT return on time 2. Input & Output VAT Matching ▪️ Ensure Input VAT = Purchase VAT ▪️ Output VAT = Sales VAT ▪️ Resolve mismatch, if any 3. VAT Payments ▪️ Calculate net payable VAT ▪️ Process payment through A - Challan ▪️ Maintain bank advice slip 4. TDS (Tax Deducted at Source) ▪️ Identify TDS applicable expenses (rent, services, contractors) ▪️ Deduct correct TDS rates ▪️ Deposit TDS to NBR within timeline 5. TDS Return Submission ▪️ Fill up form F as required ▪️ Ensure vendor-wise breakup ▪️ Submit monthly/quarterly return 6. Employee Tax (AIT) ▪️ Calculate employee-wise tax deductions ▪️ Update Form 13 A if applicable ▪️ Submit challan & documentation 7. Vendor Tax Compliance ▪️ Collect VAT/Tax Certificate from vendors ▪️ Cross-check BIN & TIN ▪️ Maintain compliance file 8. Maintain Registers ▪️ VAT 6.1 Purchase Register ▪️ VAT 6.2 Sales Register ▪️ Tax Deduction Register 9. Audit-Ready Documentation ▪️ Organize Mushak, challans, TIN-BIN list ▪️ Keep soft & hard copy backup ▪️ Prepare compliance summary 10. Timeline Review ▪️ Review all VAT & Tax deadlines ▪️ Maintain compliance calendar 11. Update Law Changes ▪️ Follow NBR circulars ▪️ Adjust systems/process as per updates ▪️ Conduct internal training if needed 12. Reconciliation ▪️ Reconcile VAT return with accounts ▪️ Reconcile TDS with ledger ▪️ Match return values with trial balance Final Note: VAT-Tax compliance is not just a legal duty, it’s the foundation of trustworthy financial reporting.

17 updates in the latest Income Tax Return (ITR) Forms for FY 2023-24! Here's a detailed breakdown of the key changes: 1. Filing Deadlines: Taxpayers now have a new column in Forms ITR 3, 5 and 6 where they specify the deadline for filing returns. 2. Online Gaming Winnings Taxation: Schedule OS has been amended to include reporting of income from online gaming in form ITR 2, 3, 5 and 6. 3. Adjustment of Unabsorbed Depreciation: The new provisions allow for the adjustment of unabsorbed depreciation in Form ITR 3 and 5. 4. LEI Details: Legal Entity Identifier (LEI) disclosure is now mandatory for refunds exceeding INR 50 crores in Form ITR 2, 3, 5 and 6. 5. Political Party Contributions: Schedule 80GGC will require detailed disclosure of political party contributions in Form ITR 2, 3, 5 and 6. 6. Cash Receipts Reporting: A new column for cash receipts reporting has been added to claim an enhanced turnover limit in Form ITR 3, 4 and 5. 7. Start-up Deduction Details: New Schedules for claiming deductions under Sections 80-IAC and 80LA have been introduced in Form ITR 5 and 6. 8. Dividend Income Reporting: dividend income received from a unit in an International Financial Service Centre shall be taxed at a reduced tax rate of 10% instead of 20%. Schedule OS has been amended in new ITR forms to incorporate such change in Form ITR 2, 3, 5 and 6 9. ESOP Tax Benefits: Enhanced reporting requirements for Employee Stock Option Plans (ESOPs) needs disclosure of PAN and DPIIT Registration Numbers in Form ITR 2and 3. 10. EVC for Tax Audits: Individuals and HUFs under tax audits (ITR 3) can now verify returns using Electronic Verification Code (EVC). This simplifies the verification process and enhances ease of compliance. 11. Reasons for Tax Audit: Additional details are required from audited companies in Form ITR 3, 5 and 6 regarding the circumstances necessitating tax audits. This change enhances transparency and accountability in tax reporting. 12. Business Trust Sums Reporting: A new column under Schedule OS allows for reporting sums received by unitholders distributed by business trust to avoid non-taxation in Form ITR 2, 3 and 5. 13. Bank Account Disclosure: Taxpayers must now disclose all bank accounts held, except dormant accounts in Form ITR 2, 3 and 5. 14. CGAS Reporting: Detailed disclosure of deposits in the Capital Gains Accounts Scheme is now required in Form ITR 2, 3, 5 and 6. 15. Deduction under Section 80CCH: A new column is introduced to claim deductions under Section 80CCH for Agniveer Corpus Fund in Form ITR 1, 2, 3 and 4. 16. New Schedule 80U: Schedule 80U is added for claiming deductions for persons with disabilities, seeking detailed information in Form ITR 3. 17. Schedule 80DD: Similar to Schedule 80U, Schedule 80DD is added to claim deductions for maintenance and medical treatment of dependents with disabilities in Form ITR 2 and 3.

🔹 1. GST Registration Limit 📌 Turnover Threshold: Goods (Normal States): ₹40 lakh Goods (Special Category States): ₹20 lakh Services (All States): ₹20 lakh 📌 Mandatory Registration (No Limit): Even if turnover is below the threshold, GST registration is compulsory for: Inter-state suppliers E-commerce operators/sellers Casual taxable persons Input Service Distributors (ISD) Non-resident taxable persons 🔹 2. Composition Scheme Limit 📌 Eligibility: Businesses with turnover up to ₹1.5 crore 📌 Tax Rates: Traders/Suppliers → 1% Manufacturers → 1% Restaurants (non-alcohol) → 5% 📌 Conditions: ❌ No inter-state sales ❌ No e-commerce selling ❌ Cannot claim Input Tax Credit (ITC) ✔ Simplified compliance ✔ Tax paid on turnover (not profit) 🔹 3. TDS under GST (Section 51) 📌 Applicability: TDS is deducted when payment to supplier exceeds: 👉 ₹2,50,000 (excluding GST) 📌 Key Points: Applicable mainly to government departments and notified entities Ensures tax compliance and tracking 🔹 4. TCS under GST (Section 52) 📌 Applicability: TCS is collected by e-commerce operators when sales exceed: 👉 ₹50,00,000 in a financial year 🔹 5. E-Invoicing Limit 📌 Applicability: Mandatory if turnover exceeds: 👉 ₹10 crore 📌 Important: Applicable only for B2B transactions Helps in real-time reporting and fraud prevention 🔹 6. E-Way Bill Limit 📌 Requirement: E-way bill is mandatory when value of goods exceeds: 👉 ₹50,000 📌 Purpose: Required for movement of goods Helps track transportation and prevent tax evasion 🔹 7. ITC (Input Tax Credit) Time Limit 📌 Claim Deadline: ITC can be claimed: 👉 Up to 30th November of next financial year OR 👉 Before filing annual return (whichever is earlier) 📌 Includes: Purchase invoices Capital goods 🔹 8. GST Returns & Due Dates ReturnPurposeDue DateGSTR-1Sales details11th of next monthGSTR-3BSummary return20th of next monthGSTR-2BITC statement14th of next monthGSTR-4Composition return18th (quarterly)GSTR-9Annual return31st DecGSTR-9CAudit/Reconciliation31st Dec 🔹 9. Penalty & Interest Limits 📌 Late Fees: ₹50 per day (₹25 CGST + ₹25 SGST) ₹20 per day for NIL return Maximum: ₹5,000 (normal return) ₹2,000 (NIL return) 📌 Interest: 18% per annum on delayed tax payment 🔹 10. Other Important GST Limits 📌 Reverse Charge Mechanism (RCM) Applicable on notified goods/services No minimum limit 📌 Export of Goods Export must be completed within 6 months from invoice date 📌 Refund Claim Must be filed within 2 years from relevant date 📌 GST Assessment Best judgment assessment can be done within 5 years 📌 Appeal Filing Appeal must be filed within 3 months Additional 3 months allowed (with delay approval) 📌 Job Work