Central Asia Tax Project

completed

The project focuses on improving tax administration and reducing tax compliance costs for businesses. It is structured around the following main components: 1. Risk Based Audit (RBA). IFC will provide targeted advice in developing and applying risk criteria for tax audits as well as designing and implementing transparent selection processes. Further, IFC will also assist in streamlining and improving inspection procedures. 2. Value Added Tax (VAT) administration procedures improved. The project will help the tax authorities to improve VAT refund procedures, simplify VAT reporting requirements, and disseminate knowledge of VAT processes among taxpayers. 3. Micro, small and medium enterprises taxation regimes. IFC will help tax authorities design a more equitable tax regime for small businesses to prevent abuses and encourage voluntary compliance and business formalization/graduation. 4. Filing, reporting and payment simplification. IFC will help tax authorities to redesign tax reporting forms, reduce filing and payment frequency and tax report processes within tax authorities. In addition, in order to have an enduring impact, the project will provide capacity building to the following: 1. Tax authorities: The project will support capacity building through training events as well as a peer to peer learning. 2. Business. IFC will support the drafting and distribution of outreach and training materials on tax administration issues for the private sector. Depending on country-specific needs, these interventions will include explanatory materials and instructions for specific tax instruments or regimes, commentary on the tax code, ombudsman services, hotlines for taxpayers, taxpayer literacy training with associations, and public-private dialogue forum.