Terms of Reference (ToR) – Tax Consultancy

Terms of Reference (ToR) – Tax Consultancy

Introduction

WaterAid is an international non-profit Organisation with one goal: to change the world through water. Along with decent toilets and good hygiene, a reliable supply of clean water is essential for health, dignity and a life full of opportunity. Childbirth is safer, children get the chance to grow up healthy and strong. Families thrive, and whole communities are better prepared for our changing climate and whatever the future holds. We started in 1981, when UK water companies created a single organization dedicated to tackling the global water crisis. Today, we work alongside communities worldwide, setting up entire systems that deliver clean water, decent toilets and good hygiene for millions. And we get the people, policies and money in place to keep these systems working – and the water flowing for good. So that people have safe, reliable services that last. Our work with communities, partners, allies and supporters has already meant millions of people can shape their future with dignity and confidence.

Our vision is ‘A world where everyone, everywhere has sustainable and safe water, sanitation and hygiene’.

WaterAid has been working in Nepal since 1987, covering all seven provinces. We team up with local partners, technical experts, governments, and communities to support the delivery of integrated and inclusive WASH services in hard-to-reach communities, helping to transform lives.

Background 

WaterAid Nepal (WAN) is seeking a qualified Consultancy Company/ firm to ensure that WAN fully complies with Government Tax Laws and regulations, manages tax calculation and obligations, minimizes financial and reputational risks, and advises to WAN as relevant.

Goal and Objective of the Consultancy

Providing the technical support service from the qualified tax consultant given the increasing complexity of taxation in Nepal, including requirements related to TDS, Income Tax, and compliance with the Inland Revenue Department (IRD)

Deliverables

1.    Tax Compliance

• Review and ensure monthly filing of ETDS as per IRD requirements.
• Review staff taxation, benefits, and allowances for compliance with the Income Tax Act of Nepal.
• Conduct Tax Audit and Tax return and updating tax filing as per the IRD calendar in the system

2.    Advisory Services

• Guide on tax implications of service contracts, procurements, payroll, and other relevant 
• Advise on cross-border transactions and double taxation treaty considerations where applicable.
• Recommend strategies for efficient tax planning within the legal framework of Nepal.
• Submit advisory notes on changes in tax legislation impacting INGOs.

3.    Risk Management

• Identify potential risks in current practices and propose corrective actions.
• Support the organization during tax audits, IRD inspections, and respond to tax-related notices.

4.    Capacity Building

• Train finance staff on the latest updates in Nepal’s tax laws, VAT/TDS handling, and compliance processes.

5.    Other Services

• Obtaining a Tax clearance and tax exemption certificate for organizations from the Inland Revenue Office.
• Supporting in preparing the financial statement as per the Nepalese Fiscal year report.
• Tax compliance report, analysis reports, or assessment report and any other tax reports and provide recommendation.

Note: Based on the volume of assignment and need in office, WAN will couple the deliverables with respective ToR in the future and the contracted company/firm shall be requested for specific financial proposal as per the disseminated TOR during the need.

Timeline / Period of Service

The consultancy period will be for one year, with the possibility of extension based on performance and organisational needs and requirements.

Required Qualifications and Experience

• Chartered Accountant (CA) or equivalent professional certification with specialization in taxation.
• Minimum 5-7 years of relevant experience in tax advisory, preferably with NGOs/INGOs.
• Strong knowledge of Nepal’s Income Tax Act, VAT Act, and IRD regulations.
• Experience in dealing with and networking with the IRD, tax audits, and compliance reviews.
• Strong communication and capacity-building skills.

Documents for Submission

• Technical Proposal
• Organization profile, 
• Company registration, VAT/PAN certificate and latest year tax clearance/ tax exemption certificates.
• Relevant experience with INGO/s
• Financial proposal (NPR, including all taxes)
• Self declaration by the applicant company/firm in the format attached to Annex I in this TOR.

Reporting 

• The implementing partner shall report to the Head of Finance and Administration, who will work in close coordination with the Finance team.  

Payment Terms

Payment will be made against submission of agreed deliverables and approved invoices as per the consultancy contract.

Selection Criteria

To Apply

Consultant companies/firms with minimum of 5-7 years of experience in VAT, TDS, income tax, and other applicable compliance requirements; proficiency in accounting and tax reporting software; and the ability to analyze financial data, identify risks, and provide practical tax solutions are invited to submit their proposal via                                              nepal-procurement@wateraid.org with the subject line “Proposal for submission for Tax Consultant.” Kindly submit your proposal files converted in PDF. 

The proposal submission date is latest by 30th August 2025. 

The annex I is available through the link shared with this advertisement