TAXATION IN TIMOR LESTE

Transcription

1 TAXATION IN TIMOR LESTE An Overview of Tax Administration Presented by Angelo de Almeida, Commissioner of Revenue, Timor Leste Revenue Service.

2 Overview of Session Introduction Mission and Vision Statement Structure of TLRS TLRS overview Petroleum Tax Division responsibilities Taxpayers responsibilities The new Petroleum Taxation Act Non-Petroleum Tax Administration TLRS powers and authority Conclusion Questions and answers

3 Timor Leste Revenue Service

4 Timor Leste Revenue Service Vision Statement The Timor-Leste Revenue Service will become a highly professional organization, trusted by the community to equitably raise revenue to support the independence of Timor-Leste. Mission Statement The Timor Leste Revenue Service is responsible for the collection of taxes, in accordance with the law and the Government policy, to enable the future development of Timor-Leste. The TLRS commits to carry out its mission by providing high quality service, honesty, transparency, integrity and equity for all taxpayers.

5 TLRS Organizational Chart Tax Commissioner Sr. Angelo de Almeida Tax Counsel Sr. Jose dos Santos Appeals Unit Sra. Gertrudes Moniz Deputy Operations Deputy Domestic Deputy Petroleum Tax Division Audit Unit Taxpayer Services Sr. Jose Eduardo Cortereal Sr. Francisco Soares Sr, Angelo de Almeida Sra. Maria Jose Amaral Sr. Ramalho da Costa Business Analyst Sra. Ostialina Belo Large Business Unit Sr. Bernardo Amaral Registration & Collections Sr. Agostinho Ramos Training Unit Sr. Jacinto Brito Dili District Office Sr. Julio de Araujo Audit Unit Finance and Logistics Sra. Joana Borges Moniz Baucau District Office Sr. Joao Demetrio NGO Unit Sr. Martino Faria Maliana District Office Sr. Agusto Casimero Lopes

6 Timor Leste Revenue Service Overview Timor Leste Revenue Service has a taxation system of Self Assessment Taxation returns and forms are receivable electronically or by mail Payments are accepted electronically to the Petroleum Fund (for Petroleum Operations) both electronically and directly at the bank for non-petroleum operations New taxation forms and guidelines are currently being drafted for petroleum operators and domestic businesses. Ministry of Planning and Finance website ( is being upgraded and TLRS will be publishing regular newsletters

7 Petroleum Tax Division Responsibilities Registering new taxpayers. Accurately recording details of taxpayer payments. Ensuring taxpayer compliance with the law. Providing written and oral advice to taxpayers. Implementing new petroleum taxation legislation. Reconciling Petroleum Fund payments.

8 Taxpayers Responsibilities All operators and contractors involved in petroleum operations are required to register for a TIN number. Information requested includes; Entity s legal name, enterprise type, when do you intend to commence, location of business, resident or non-resident, trading address, postal and address for correspondence, and contact name. The Petroleum Tax Division will confirm your TIN number and advise how payments for petroleum operations may be made to the Petroleum Fund

9 2. Remitting Tax for Petroleum Operations Depending on the nature of the Taxpayer s operations taxpayers may be required to remit the following taxes; Business / Corporate tax Wages Income Tax (employee tax) Withholding Tax VAT Supplemental or Additional Profits tax Taxpayer s must make payments to the Petroleum Fund for all petroleum related taxes All payments are due on the 15 th day of the following month Penalties may apply for late payment of taxes

10 3. Lodging of tax returns and forms Annual Income Tax returns are required to be lodged by the 31 st day of the third month after the tax year (usually 31 st March) All tax remittance forms are required to be lodged by the 15 th day of the following month. Penalties may apply for late lodgment of tax returns and tax remittance forms.

11 The New Petroleum Taxation Regime for future JPDA projects. Interpreting the Law: Timor Sea Treaty Timor Leste Petroleum Taxation Act Laws under UNTEAT Regulation 1999/1 Regulation 2000/18 (partly for administrative purposes)

12 The Petroleum Taxation Regime for Timor Leste Onshore and Offshore Projects Interpreting the law: Timor Leste Petroleum Taxation Act Regulation 2000/18 Directive 2001/2 Laws under UNTEAT Regulation 1999/1

13 Timor Leste Non-Petroleum Tax Types Non- Petroleum Domestic Taxes Wages Income Tax (Employee Tax) Services Tax Income Tax Withholding Tax Final/Non Final Monthly or Quarterly Installment Taxes (1 % of gross income)

14 Powers of Access TLRS has wide powers to gather information and evidence: Access to books, records and computers Full and free access to premises, make copies, seize records. Information and evidence Request person to provide information, give evidence, present documents or other records.

15 Time Limits TLRS has wide powers to make or amend tax assessments: Within 5 or 10 years from when tax due Where person did not intend to evade tax and has not committed fraud. No time limit Where person intended to evade tax or has committed fraud. Commissioner may make an assessment before the end of the tax period in certain circumstances where tax is at risk of not being paid.

16 Independent Administration Regulation 2000/18, section 4.6 states No person to: interfere in operation of revenue collection process, or influence the Commissioner or officers in carrying out responsibilities.

17 Conclusion Timor Leste Petroleum Tax Regimes are unique for the following reasons: 1. Timor Sea Treaty with Australia within the JPDA sharing petroleum 90% to Timor Leste and 10% Australia. 2. Taxation of Bayu Undan Contractors Act specifically designed to encourage contractors to proceed to development. 3. Petroleum Taxation Act for future petroleum operations for Timor Leste, on-shore, offshore and within the JPDA. 4. Special taxation provisions within the Petroleum industry.

18 Timor Leste Revenue Service Contacts Website: Non-Petroleum (Domestic) Tax Ph or Deputy Commissioner Mr Francisco Soares Mr Terry Greenwood (Lead Revenue Adviser) Large Business Division Mr Bernado Amral Ms Rhonda Robinson (Adviser) Small Business - Mr Julio de Araujo jaraujo@mopf.gov.tl Petroleum Tax - Ph or or Fax Mr Angelo de Almeida aalmeida@mopf.gov.tl Mr Agustinho Ramos aramos@mopf.gov.tl (Team Leader) Mr Rob Steele rsteele@mopf.gov.tl (Adviser) Mr Abdur Rahman Khan akhan@mopf.gov.tl (Adviser)

19 Questions