Medium & Small Taxpayer Regime Simplification Project (Phase II)

The objective of this advisory service project is to streamline the taxes related processes and align their legal framework with international best practices in order to make the entire tax system more accessible and efficient. This should lead to improving Yemen’s doing business environment by reducing the time and financial cost of compliance with tax laws and regulations.

In this 18-month complex project, we are setting-up a team of highly qualified international experts to address the following issues:

• Implementation of the Tax Authority redesigned structure:
  • Lead program and change management.
  • Provide input on newly designed Tax Administration (TA) structure and improve it into an action plan for the TA to use as a guideline.
  • Develop departments’ structure and job descriptions followed by training for the positions to help to administer the TA properly.
  • Develop specific functions including General Sales Taxes (GST) and Income Tax: collection, audit, risk analysis, appeals and self-assessment/declaration.
  • Develop detailed manuals, guides, and tools to carry out job descriptions.
  • Define performance criteria for the TA personnel.
  • Develop an IT roadmap for the TA to identify key automation issues that need to be addressed.
  • Provide training on new job descriptions, risk assessment, and self-assessment/declaration systems.
  • Develop the framework to upgrade the TA’s General Training Department to enhance the skill of the TA personnel on a continuous basis.
• Develop Small Business Tax Regime Pilot
  • Lead program and change management.
  • Develop modified and detailed organizational structure of the TA to effectively implement Small Business Tax regime based on self-assessment/declaration and risk based administration principles
  • Provide support to build a basic database for small taxpayers’ turnover verification.
  • Turn the regional tax offices to medium and small tax payers’ offices with separate operational tasks that offer specialized and tailored services to these types of taxpayers.
  • Develop specialized taxpayer services and information.
  • Develop new enforcement strategy.
  • Start and test rollout of administrative reforms by running a pilot program with the new administrative regime at the selected location (i.e., Sana’a and Aden).
  • Based on the lessons learned from the pilot experience: fine-tune the procedures and institutional structure that will be deployed in all regions.
  • Develop a training program for TA staff.
  • Draft and disseminate the training material (business registration starter packs on tax compliance requirements, accounting materials).
  • Redesign and tailor related tax business processes for Small Business Regime.
  • Develop Procedures, forms, payment modalities.

• In coordination with sub-national reform work stream: consolidate other tax instruments facing small firms at the local level.