TaxTim and PwC continue their African expansion

Cape-Town based tax solution firm TaxTim has leveraged its partnership with Big Four accounting and advisory firm PwC to expand into the Nigerian market, continuing its African expansion.

TaxTIm is a FinTech tax solutions that facilitates a conversation between as user and a bot, which is then used as a basis to generate an automated tax return that can be directly filed with a revenue authority. The solution was launched in 2011, backed with seed funding from Google, and has since gained tremendous success.

TaxTIm is tied into the South African Revenue Service (SARS), making it possible to submit returns online with a single click. More than 1.7 million taxpayers in South Africa rely on TaxTim to file their taxes online. The solution has vast potential to promote tax compliance, given that it simplifies the process and makes it more trustworthy.

In 2015, TaxTim began an African expansion plan in collaboration with PwC. The duo first launched the solution in Namibia, and have now expanded this presence to Africa’s largest market – Nigeria. A PwC statement on the launch presented several of TaxTim’s key features to Nigerian taxpayers.

“One of the reasons often cited for why many businesses and individuals do not pay their taxes is because the process can be complex and cumbersome, and taxpayers are not sure of how much to compute or interpret the tax law,” said the PwC statement. Nigeria has struggled with tax compliance in recent years, and many have recommended simplifying the process as a solution.

“TaxTim is maintained by registered tax practitioners. Subscribers to the web-based solution will have access to the knowledge of these professionals and can complete and submit their tax returns to the authorities with confidence,” added the PwC statement.

The solution’s demonstrated success has partly been a product of the circumstances within which it has operated. SARS has been launching a sea of targeted initiatives in recent years, aimed at increasing tax compliance and bolstering revenues. Each new regulation serves to confuse taxpayers more, while tax advisors scramble to explain the repercussions of new policies. TaxTim has offered a simple virtual guide through this ever-changing scenario.