Tax Collection and Reporting Policy

This Integration Policy is effective dated: June 01, 2024

Control Document: GEF-PP-030, Ver. 1.0

Overview

This policy outlines the procedures for tax collection, submission, and documentation related to the invoices generated by the platform. It ensures compliance with the SRB – Sindh Revenue Board requirements, covering subscription-related invoices.

Scope

Please note that galaxefi has nothing to do with freight-related invoices. Freight-related invoices pertain to the service provider, and hence, the service providers themselves are responsible for the SRB requirements at their end.

This policy applies to subscription-related invoices only. It details the collection, submission, and acknowledgment of taxes under the jurisdiction of the SRB.

Tax Jurisdiction

As the platform operates from the province of Sindh, the tax jurisdiction is governed by the SRB. All tax-related activities must adhere to SRB regulations and timelines.

Types of Invoices

Please refer to the types of invoices in our billing policy.

Tax Collection Process

  • Collection: As per the current SRO – Statutory Regulatory Order, a 15% tax is applied on the gross amount of subscription-related invoices, DOLS-related invoices, and the SW-facilitation-related invoices as mandated by SRB. This tax is calculated on the first amount or gross amount before any discounts are applied. Discounts offered on the invoices do not affect the tax calculation.
  • Monthly Submission: The tax collected from the previous month’s invoices must be uploaded to the SRB portal by the 10th of each month.
  • Please refer to the SRB SRO and guide.

Schedule of Charges

Please refer to our previous, current, and forthcoming schedule of charges.

Payment and Acknowledgment

  • Payment Deadline: The tax collected from customers must be deposited into the government treasury by the 15th of each month.
  • Acknowledgment: Upon successful payment, an acknowledgment receipt will be generated, detailing the invoices, customers, their NTN – National Tax Number, and the corresponding tax amounts. This will be provided in Annexure C to galaxefi.

Reflection on Customer Accounts

  • After receiving Annexure C by galaxefi, the tax collected will automatically be reflected in the respective customer accounts through Annexure A.
  • Annexure A is used to reflect the tax collected and deposited in the SRB portal, where customers can verify the tax deducted and deposited into the government treasury by logging into their accounts

Roles and Responsibilities

  • Finance Team: Responsible for collecting taxes, uploading them to the SRB portal, and ensuring payment is made to the government treasury on time.
  • Customer Support Team: Ensures customers receive the acknowledgment and can verify the tax deductions on the SRB portal. Please note that the reflection of tax collected and deposited in the government falls under the governmental third-party services and galaxefi has no control over it. Nevertheless, galaxefi can confirm the tax collection deposits in the government’s treasury if needed.

Record Keeping

All records, including Annexure C, are stored on our platform and maintained for audit purposes, in compliance with SRB regulations.

Similarly, it is advised to the customers to maintain Annexure A at their end in order to fulfill compliance with SRB regulations.

Compliance and Review

  • Compliance: All tax collection and submission activities must strictly adhere to SRB guidelines.
  • Review: This policy will be reviewed annually or as required by changes in SRB regulations.

Exceptions

Any exceptions to this policy must be approved by the Chief Financial Officer (CFO) and documented accordingly.

Policy Review and Updates

This policy will be reviewed periodically to ensure it remains aligned with the latest legal requirements and operational needs of the platform. Any updates will be communicated to all relevant stakeholders.

Quick Contact

By adhering to this Integration Policy, galaxefi commits to ensuring the tax compliance with governmental agencies. For questions or concerns about this Policy, please use the following form: