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    AEC - Tax Advisory and Training Proposal

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    sefanit
    BDO Consulting PLC will provide tax advisory and training services to AEC Business Consulting PLC. The services include training on tax treatment of intercompany transactions, CIT and deferred tax computation, accounting for operational funds received from parent companies, and an overview of Ethiopian tax laws. BDO's team will complete the work within 10 days for a fee of 4,600 USD plus 15% VAT. Upon completion of the activities, AEC must pay BDO within 10 days according to the terms outlined in the engagement letter.

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    AEC - Tax Advisory and Training Proposal

    Uploaded by

    sefanit
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    BDO Consulting PLC will provide tax advisory and training services to AEC Business Consulting PLC. The services include training on tax treatment of intercompany transactions, CIT and deferred tax computation, accounting for operational funds received from parent companies, and an overview of Ethiopian tax laws. BDO's team will complete the work within 10 days for a fee of 4,600 USD plus 15% VAT. Upon completion of the activities, AEC must pay BDO within 10 days according to the terms outlined in the engagement letter.

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    AEC - Tax advisory and training proposal

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    BDO Consulting PLC will provide tax advisory and training services to AEC Business Consulting PLC. The services include training on tax treatment of intercompany transactions, CIT and deferred tax computation, accounting for operational funds received from parent companies, and an overview of Ethiopian tax laws. BDO's team will complete the work within 10 days for a fee of 4,600 USD plus 15% VAT. Upon completion of the activities, AEC must pay BDO within 10 days according to the terms outlined in the engagement letter.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    59 views4 pages

    AEC - Tax Advisory and Training Proposal

    Uploaded by

    sefanit
    BDO Consulting PLC will provide tax advisory and training services to AEC Business Consulting PLC. The services include training on tax treatment of intercompany transactions, CIT and deferred tax computation, accounting for operational funds received from parent companies, and an overview of Ethiopian tax laws. BDO's team will complete the work within 10 days for a fee of 4,600 USD plus 15% VAT. Upon completion of the activities, AEC must pay BDO within 10 days according to the terms outlined in the engagement letter.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 4

    Tel: +251 11 663 1196 BDO Consulting PLC

    Fax: +251 11 663 1205 Bole Sub City, Woreda 03


    www.bdo-ea.com House No. New
    Tropical Mall, 11th Floor
    P.O.Box - 14001
    Addis Ababa, Ethiopia

    November 10, 2022

    Jan de Dieu Twizeyimana


    Financial Controller
    AEC Business Consulting PLC

    Dear Sir:

    Subject: Engagement Letter for Tax Advisory and Training Services

    This letter contains our Engagement Letter, which confirms BDO Consulting PLC, (here after
    referred to as “BDO”) engagement to provide professional advisory services to AEC Business
    Consulting PLC (hereinafter referred to as “AEC” or “the Client”).

    The document was prepared as per the correspondence we have had with you, whereby you
    requested BDO to submit a proposal for the services listed below.

    Attached please find our proposal.

    Sincerely,

    Million Kibret
    Managing Partner

    BDO Consulting PLC, a private limited company in Ethiopia, is a member of BDO International Limited, a UK company limited by guarantee, and forms
    part of the international BDO network of independent member firms.
    I. TECHNICAL

    A) OUR UNDERSTANDING OF THE ASSIGNMENT

    AEC Business Consulting Plc (currently transitioning to Inkomoko Ethiopia) is a business consulting
    company that offers business consulting and training to entrepreneurs to create jobs, improve
    livelihoods and create thriving communities. The company is jointly owned by Inkomoko
    Entrepreneur Development Limited based in Rwanda (50% share) and Inkomoko Kenya based in
    Kenya (50% Share), with the parent company registered in USA.

    The Client requests the following services from BDO:

    • Training on tax and accounting treatment of intercompany transactions particularly on


    cost sharing policy.
    • Training on CIT and Deferred tax computation.
    • Accounting treatment of operational funds that are received from Kenya and Rwanda
    monthly following the registration of paid-up share capital and advise on any tax or legal
    & regulatory implication.
    • High level overview of tax laws in Ethiopia.

    B) DESCRIPTION OF ACTIVITIES BY BDO

    • Reviewing the transactions made by AEC and identifying the gap in terms the applicable
    tax laws and regulations.
    • Based on the identified gap, provide training on tax and accounting treatment focusing
    on the cost sharing policy and relevant taxes including CIT and Deferred tax.
    • Review the transactions of 2022 and advice on the accounting treatments related with
    paid up capital and any other as deemed necessary.
    • Prepare a tax memo on overview of taxes in Ethiopia.

    C) TEAM COMPOSITION

    Name Position
    Million Kibret
    1 Managing Partner
    (MBA, BA, Authorized Accountant)
    Getinet Hailu
    Director, Tax & Advisory
    (MBA, BA, Authorized Accountant)
    Samrawit Yemaneh
    Senior Manager, Tax & Advisory
    (ACCA, Msc, BA)

    D) TIME BUDGET

    BDO will complete the activities under this engagement letter in 10 (ten) working days from
    signing of this engagement letter.

    2
    II. FINANCIAL

    Our fee for the services described above is as follows:

    Daily
    Man Total Fees
    Staff Charge out
    Days
    USD USD
    Partner 0.5 1,000.00 500.00

    Director 2 800.00 1,600.00


    Manager 5 500.00 2,500.00

    Total 4,600.00

    Note 1: All fees are exclusive of VAT at 15%


    Note 2: Payment terms – the Client will pay BDO in 10 days after completion of the activities.
    Note 3: The fees, stated in US$, can be paid in ETB equivalent at the official exchange rate at the date
    of the invoices.

    3
    III. AGREEMENT

    If these arrangements are acceptable, please sign one copy of this letter and return it to us. We
    very much appreciate the opportunity to serve you.

    ___________________________________________________________________________

    For: AEC Business Consulting PLC

    Agreed.

    Signature: ______________________

    Name: ______________________

    _________________________
    [Title]

    _____________________

    [Date]

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