Tax Procedures
1. Every person who engages in an activity or work subject to tax, or who is required to fulfill tax obligations, must notify the Tax Chamber of that by submitting a written registration request within thirty (30) days from the date of engaging in such activity or from the date the conditions for tax liability are met, in accordance with the criteria, procedures, and forms determined by a decision of the Secretary-General.
2. Every employer must submit a registration request for his employees within one month from the date the employee commences work.
3. The Secretary-General may permit certain taxpayers to submit the registration request electronically.
Every taxpayer must notify the Chamber within one month of any change related to his name, address, place of business, trade name, new branches, the legal form through which he conducts his activity, and any change occurring in the names of shareholders or partners or in their shareholding or partnership percentages, as well as any information related to his main activity or any other activities connected to his main activity.
1. A taxpayer who permanently ceases business must notify the Chamber of such cessation within one month from the date of cessation.
2. The bases for auditing the records of taxpayers who have ceased business shall be determined in accordance with the criteria set by the Secretary-General.
3. The Chamber must complete the audit of the file of a taxpayer who has permanently ceased business within a period not exceeding three months from the date the cessation is submitted, extendable once by a decision of the Secretary-General.
4. A taxpayer who temporarily ceases business must submit a declaration of temporary cessation to the Chamber within a period not exceeding one month from the date of such cessation, and must continue submitting the tax return.
5. The employer must submit a list of the names of employees who left employment with him during the previous year, along with the annual return for tax on salaries and wages.
6. A taxpayer who meets the conditions for deregistration with respect to any type of tax may submit a request for deregistration, and in this case the provisions set forth in this Article shall apply.
The Chamber shall issue the taxpayer, upon registration, a single tax identification number for all types of taxes, including customs duties, in accordance with procedures determined by the Secretary-General.
2. Official authorities and state agencies at the various levels of government, public authorities and their affiliated production units, as well as private sector institutions including companies, partnerships, business names, wholesalers, and others, may not deal with any taxpayer unless he has obtained the tax identification number. They must record this number, in addition to their own tax identification number, in the documents exchanged between them and in those pertaining to their employees.
. The Chamber shall allocate to each registered taxpayer a single tax account, itemized according to each type of tax.
2. The taxpayer’s account must show the movement of transactions relating to the different types of taxes.
3. Subject to any specific provision in any law, the documents related to the taxpayers’ accounts shall be kept at the Chamber for a period of ten years.
4. The taxpayer or his legal representative may submit a written request to the Chamber to be provided with the information relating to his account, and the Chamber must provide him with a statement of this information within a period not exceeding seven days from the date of submitting the request.
The Chamber may request any person who receives funds or services from the taxpayer, or provides funds or services to him, to provide information about such transactions.
Obligation to Notify the Chamber of Information Related to Natural and Legal Persons
The competent authorities must notify the Chamber of the registrations completed in the Commercial Register, and in particular information regarding incorporation, name, legal form, location and type of business, capital, distribution of shares and stocks and their transfer by inheritance or assignment, merger, reorganization, liquidation, bankruptcy, deregistration, as well as any other information that may be useful to the Chamber, on a monthly basis and no later than the tenth day of the following month.
Professional organizations and private bodies responsible for registering persons engaged in non-commercial professions must notify the Chamber of every registration, cancellation of registration, or transfer of registration, on a monthly basis and no later than the tenth day of the following month.
The form for submitting the information stipulated in this Article shall be determined by decisions issued by the Secretary-General.
Cooperation Between the Chamber and Various Public and Private Sector Units
1. Notwithstanding the provisions of any other law, every taxpayer, including state agencies, public institutions, all localities, and the various bodies in the private sector and unions, must provide the information requested by the Chamber to carry out its duties. No taxpayer or entity may refuse to allow the Chamber’s employees to review the accounting records and documents that enable verification of the taxpayers’ compliance with their tax obligations, or that enable them to respond to information requests received by the Chamber pursuant to double taxation avoidance agreements.
2. The Chamber may request the Public Prosecution to allow it to review the file of any case brought before it, if it becomes apparent to the Chamber, based on the information it possesses, that there is reason to believe that a taxpayer has defrauded the Chamber or attempted to defraud it in any matter relating to taxes, regardless of the type of case, even if it has been closed by a decision of the Public Prosecution to dismiss.
The Chamber may, for the purpose of obtaining complete information regarding goods, services, and the tax imposed thereon, and any other matters related thereto, and regarding the income and tax of any person or any category of persons, and notwithstanding any provision in any other law, request any person by written notice to:
(a) Submit for examination by the Chamber, at the time and place specified in that notice, any accounts, books of accounts, lists of assets and liabilities, and any other documents that the Chamber deems necessary for this purpose.
(b) Immediately submit any accounts, books of accounts, or other documents specified by the Chamber in that notice, for the Chamber to retain for a reasonable period sufficient for their examination.
(c) Appear at the time and place specified in that notice for the purpose of inquiry and interrogation regarding the goods, services, and the tax imposed thereon, and any other matters related thereto, and regarding his income or the income of any other person, or any transactions or matters that appear to be relevant to such income.
A taxpayer who maintains electronic accounts must enable the Chamber to access his electronic system and review his accounts, documents, and books, and take copies thereof for the purposes of examination and audit to verify income and tax.
If a person fails to comply with the provisions of paragraphs (1) and (2), the Secretary-General or his authorized representative may, without prior notice, enter the person’s place of business during working hours to review the books of accounts, documents, and data deemed necessary and take them for the purposes of examination and audit to verify his income and tax.
Any federal and state government units, localities, public authorities, cooperatives, and public and private sector companies and factories must prepare a suitable office for the Chamber’s employees for the purpose of enabling it to collect certain taxes or obtain information and conduct audit and documentary examination procedures.
The Secretary-General or his authorized representative may enter, during working hours or at any time he deems appropriate, places of business such as factories, warehouses, shops, establishments, and real estate properties that carry out activities involving taxable goods, services, and income, to conduct field inventories and request any information, clarifications, or documents, or take them to the Chamber for examination and audit. The Secretary-General or his authorized representative shall have the right to be accompanied by such police officers or Chamber employees as he deems appropriate to achieve this purpose, and the taxpayer must provide any information requested by the Secretary-General and assist him in performing his duty.
- The taxpayer shall be notified at the address he declares to the Chamber. In the event the taxpayer changes his chosen place of residence, notification documents shall be sent to his new address if the Chamber has been notified of this address in accordance with the provisions of Article (12) of this Law. However, in the event of failure to notify the new address, notification shall be deemed lawful when sent to the last address registered with the Chamber.
- In cases where the taxpayer has not registered with the Chamber, he shall be notified through publication on the website and in two local newspapers.
- In cases where the Chamber is obligated to notify the taxpayer, notification shall be carried out either by delivering the notification documents personally to the taxpayer or his legal representative, or by regular mail with acknowledgment of receipt, or by email, or by fax, or by any other electronic means approved by the Chamber. Notification shall be served at the branch located within Sudanese territory.
- Any partnership shall be notified regarding tax obligations through the partner whom the partners have designated to handle the tax obligations on its behalf, in accordance with the procedures stipulated in this Chapter.
- If the chosen address for notification of a natural person is his place of work, he shall be notified personally or through any of his employees. If the chosen address is his home, he shall be notified personally or through any of the residents living with him.
- A legal person shall be notified through notification of the persons authorized by it to receive.
- In cases where the Chamber is obligated to issue assessment schedules, publication shall be made on the Chamber’s website, and taxpayers shall be deemed notified as of the date of publication on the website. Taxpayers mentioned in this clause who are in default of payment shall also be notified through the payment notice stipulated in Article (54) of this Law, the enforced collection decision stipulated in Article (55) of this Law, and the seizure order stipulated in Article (57/1) of this Law. The notice shall be published in two or more daily newspapers and on the Chamber’s website, and taxpayers shall be deemed notified as of the date of publication.
- If none of the taxpayers required to be notified are found and notification cannot be served twice consecutively, the employee responsible for notification or the postal employee shall, after obtaining the Chamber’s approval, affix a notice to the door of the place where the concerned taxpayer is to be notified, and the information related to this notice shall be published on the Chamber’s website. The notice must include the date of affixing and a request for the concerned taxpayer to report to the Chamber within 15 days from the date of publication. The Chamber shall publish a list of taxpayers who were notified by affixing in two or more newspapers and on the Chamber’s website. The list must include the date of the second visit, the date of affixing, and the registered mail number, if any.
- If the chosen address of the taxpayer who has registered with the Chamber is unknown, publication in two newspapers and on the website shall suffice with respect to the notice to report. If he does not initiate contact with the Chamber within the aforementioned period, the Chamber shall then be exempt from the obligation to prepare preliminary proposals and shall proceed to determine the final result of the audit.
- In the event of refusal to receive the notification, the employee responsible for notification or the mail distributor must record the fact and date of refusal on the envelope with his signature, return the document to be served to its source, and inform the person or taxpayer of the address of this source. The notification shall then be deemed validly served as of the date of refusal. Prisoners shall be notified through the prison director.
Taxpayers obligated under specific tax laws to submit returns or statements related to the tax base must submit them in writing to the Chamber within the legally prescribed period, or by email, or by any other advanced means approved by the Chamber.
Notwithstanding the provisions of Clause (1), the Secretary-General may obligate certain taxpayers, with respect to certain types of taxes, to submit returns by regular mail, and obligate others by email or by any other advanced means.
The return must be signed by the taxpayer or their legal representatives. In the case of self-assessment of tax, the taxpayer must record the name of any person who contributed to the preparation of the submitted return, along with the tax identification number and address of that person.
Taxpayers subject to the self-assessment system must pay the tax due based on the return by the deadline specified for submitting the return.
Subject to the provisions of tax laws, the Chamber may extend the period for submitting returns by a maximum of fifteen days for periodic returns and one month for annual returns, based on a request submitted by the taxpayer if there are substantial reasons warranting the extension.
The request for extension of the return must be submitted no later than ten days before the expiry of the original deadline for submitting returns. The Chamber must decide on the request five days before the expiry of the period. The taxpayer or his legal representative must follow up with the Chamber to learn of its decision regarding his request, starting from the day following the expiry of the period allocated for reviewing the request.
Failure by the Chamber to decide on the request shall be deemed an implicit rejection, and no further request for reconsideration or review shall be accepted. Notwithstanding the provisions of Clause (1), the collection of tax or penalties due on unpaid amounts may not be suspended.
In all cases, the burden of proving the accuracy of the return falls on the taxpayer, and the Chamber must provide justification for any decisions it issues regarding the rejection of returns, their amendment, or the increase of the tax due.
Tax assessment means determining the tax payable and due from the taxpayer for a specific tax period and with respect to a specific tax.
Tax assessment shall be as follows:
(a) Administrative Assessment : This means the Chamber imposing the tax due for taxes not subject to self-assessment, in accordance with a mechanism determined by a decision of the Secretary-General.
(b) Self-Assessment - Self-assessment of tax means the taxpayer calculating the tax in accordance with legal provisions, submitting the return, and paying the tax due within the statutory period. - If the Chamber finds violations that make it impossible to determine the taxpayer’s revenues or profits from the records and documents he keeps, or due to their absence, or failure to present them, or failure to submit the return.
The assessment is carried out by the Chamber based on the following sources of information:
1. Information extracted from the taxpayer’s returns and records. 2. Information available in accordance with the provisions of Article (18) of this law. 3. Information resulting from review and field inspection. 4. Any information obtained by the Chamber. - The Secretary-General may transfer certain categories of taxpayers from administrative assessment to self-assessment.
In order to verify the accuracy of tax assessment, collection, and refund, the Chamber has the right to review and examine the taxpayer’s returns and activities based on criteria established for this purpose.
Review is divided into two types:
■ Desk Review : This means the review that does not require conducting a field inspection at the taxpayer’s premises for more than two visits. The Chamber contacts the taxpayer or those dealing with him and requests that he provide certain information, then it either issues an assessment or approves the return. This review does not require the issuance of a review order or a preliminary review, and it may be converted into a field review if the Review Director deems it necessary.
■ Field Review : This means the case that requires a field review of the taxpayer. As part of the review process, the Chamber has the right to examine all elements of the tax base and to inspect the accounting records and documents of the taxpayer, or of any other person related to him.
The employee responsible for tax review and audit shall conduct the review/audit at the taxpayer’s premises based on a letter issued by the Review Director of the relevant unit. The letter must include the following information:
a. Letter number and date of registration b. Name of the inspector assigned to the review c. Taxpayer’s name, address, and tax number d. Tax periods and types of taxes subject to review e. Name and signature of the Review Director
Notifying the Taxpayer of the Review and Tax Audit Process
The Chamber must notify the taxpayer of the review process and the start date of the review and audit within a period not exceeding fifteen days from the date of notification, with respect to review and audit programs. The notification must include specifying the accounting records and documents for the tax period subject to review and audit that the taxpayer is required to present. Notification is not required in cases of review and audit processes related to tax refund requests, including Value Added Tax. The taxpayer shall be responsible for providing the records and supporting documents as of the date of submitting the refund request under review.
The Chamber has the right to assign the employee to examine and verify the accounting records, documents, and other physical elements related to the exercise of the activity in implementation of the review process, without being bound by the notification stipulated in Clause (1), if it has serious doubts that prior notification may jeopardize the success of the review and audit process.
The employee responsible for review and audit must present to the taxpayer, at the start of his task, his employee ID card and the review letter.
The review and audit process shall be conducted on-site during official working hours, and exceptionally during the taxpayer’s working hours.
The field review and audit process at the taxpayer’s premises must not exceed a period of four months from the start date of the review and audit. The Chamber may extend this period for a maximum of four additional months based on a justified request from the employee in charge of the review and audit process.
The review and audit process shall be limited to the tax periods specified in the review letter, provided that it may also cover other tax periods with the approval of the Review Director.
Notwithstanding the provisions of Article 29 (1), the Chamber may review periods that have lapsed due to statute of limitations in cases of carried-forward losses or a credit balance, including:
(a) For income tax: The carried-forward loss from previous tax periods that have lapsed, which was carried forward to the tax period subject to review. In this case, the review shall be limited to matters relating to the acceptance of this loss or to adjusting its amount by reduction or cancellation.
(b) For Value Added Tax: The carried-forward credit balance resulting from previous tax periods that have lapsed, which was carried forward to the tax period subject to review or to the tax periods specified in accordance with the provisions of Clause Three above, provided that the review is limited to matters relating to the acceptance of this balance or to adjusting its amount by reduction or cancellation. The taxpayer whose activities are to be audited must cooperate with the employee responsible for the review and facilitate his task. This employee is not entitled to remove records and documents except in cases where it is not possible to conduct the audit at the taxpayer’s workplace, and only after the approval of the Review Director.
A tax period that has previously undergone a comprehensive field review may not be re-reviewed, except if new information arises that affects the calculation of the tax due, and only within the scope of such information.
Subject to the provisions of Article (29) of this Law, the Chamber must notify the taxpayer of the results of the preliminary review related to the review of activities, and grant him a period of 15 days to submit his comments thereon, before issuing the final review results. Granting the said period shall not result in the forfeiture of taxes arising from the review due to the statute of limitations. The period shall be reduced to 7 days in the case of a tax refund request.
The Chamber may not be obligated to notify the taxpayer of the preliminary review results in the following cases: - If he is not registered. - If he fails to provide the Chamber with information that helps determine the tax base. - If he fails to submit the return. - If the assessment is limited to imposing penalties only. If the taxpayer presents new data or
supporting documents, the Review Department may, based on such data and documents after studying them, amend the review results it had reached.
The Review Department shall issue the final assessment within a maximum period of one month starting from the date it receives the taxpayer’s comments, or from the date the taxpayer states that he has no comments, or upon the expiry of the period stipulated in Clause (1). This additional period shall not result in the forfeiture of the tax subject to this assessment due to the lapse of time under the statute of limitations.
The taxpayer shall be notified of the final result of the review by means of a tax notice. If this review results in tax adjustments, the Review Department shall specify in this notice the amount of these adjustments and the reasons therefor.
- Notice number and date
- Taxpayer’s name and address
- His tax number
- The amounts subject to tax, specifying the tax periods related there t
- Reasons for the assessment
- The value of the tax and penalties imposed
- Request for payment of the amounts due within the statutory period
- Statement of the permissible payment methods
- Appeal period
- Signature of the competent Head of Review
