People and Organisation

Delivering and developing employment tax solutions

Overview

People Risk Assurance (“PRA”) is part of a multi-disciplinary offering within the Tax Consulting Solutions business unit and works alongside other PwC tax and legal specialty teams both locally and internationally to deliver unrivalled employment tax consulting solutions to organisations.

In doing so, we help companies with the planning and implementation of their strategy through practical advice which ensures that such organisations pay the right employee taxes and social security for both their local and expatriate employees.

Issues you may be facing

Compliance with employment tax and social security legislations.
Upskilling your staff on employment and personal tax topics which we can assist with by carrying out client or industry specific training.
Additional assessments for PAYE from the Kenya Revenue Authority (KRA) and reviewing erroneous KRA findings and calculations.
Erroneous tax liabilities on your tax ledger on the KRA web portal (iTax).
Structuring of tax efficient employee incentive programmes or remuneration policies.
Misclassification of employees as independent contractors.
Identifying areas of non-compliance based on your existing payroll records.

How we can help

We have extensive experience in dealing with complex employment tax issues that affect businesses and organisations of all types in Kenya and the East African region.

Through our broad network of firms across the globe, we bring a uniquely partnered approach to our clients who have cross-border interests.

What we do
Employment Tax Advisory
Payroll review and tax audit support

What we do

The PRA team works with employers and individuals to help them stay in control of their employment and personal tax affairs. Our comprehensive range of services are designed to help our clients transform to their desired state of tax compliance maturity.

We support our clients to build sustainable employment and personal tax operating models by identifying priorities, analysing tax implications of relevant transactions and policies, and reviewing and optimising tax strategies, governance structures and processes.

Why we do it

Whilst the goal of many is to optimise tax strategies and processes to ensure tax compliance and take advantage of tax opportunities, most just want to be more proactive in identifying and managing relevant tax risks.

Getting all this right is rarely, if ever, the job of a single person or function. That is why we are here to provide holistic tax solutions to our clients’ most important business issues.

How we do it

We get to know our clients by building strong relationships that help us better understand their goals and challenges.

Our team brings the expertise, experience and commitment that is required to provide the right level of input and methodology throughout the engagement cycle. We provide support from problem identification to providing recommendations.

Employment Tax Advisory

Tax Advice

Tax implications and optimisation of different types of remuneration and compensation structures.
Incentive plans design, implementation, review and taxation.
Tax and social security implications of global mobility programs and cost recharge mechanisms.
Remote working policies review and drafting.
International conventions, bilateral agreements and double tax treaties.
Retirement and terminal benefits planning and tax implications.

Review of Contracts and Agreements

Risk analysis for independent consultants agreements.
Review of joint employment contracts.
Reviewing agency contracts for clients in different sectors.
Employer tax and social security obligations arising from contractual terms.

Training and Tax Policy

Client or industry specific training on employment and personal tax topics.
Engaging tax policy makers for development of legislation and policy on upcoming or contentious personal and employment tax
Private ruling applications with regards to personal tax matters.

Payroll review and tax audit support

Payroll Health Checks

Review of payroll records to identify areas of non-compliance.
Payroll parameter testing for certain thresholds or limits.
Review of employment contracts and HR policies to understand the compensation environment.
Recommendations for tax planning, full compliance and remedial actions.

Payroll Due Diligence

Review of the tax filing and payment (compliance) status of the target entities.
Review of monthly payroll calculations, filed returns and employment contracts to reasonably ensure correct reporting and tax withholding.
Review of the target’s remuneration and other salary and benefit related policies to identify benefits that may have not been correctly taxed.
Review the target’s staff costs to audited financial statements reconciliations for the period in question.

Revenue Authority Employment Tax Audit Support

Conducting pre-audit reviews to flag high-risk areas and assess potential exposure.
Reviewing Kenya Revenue Authority (KRA) calculations and findings.
Responding to KRA assessments and notices.
Meetings with KRA officials to resolve matters.
Tax and social security dispute resolution services.

Data Analytics

HR and payroll data analytics.
iTax ledger analytics and reconciliations.
Payroll cost reconciliations.

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