Construction

A contractor can be profitable on paper and short of cash in practice. Work is certified late, retentions are held for months, subcontractors need paying on time, and tax is due on revenue that hasn't been collected yet. When contract accounting and tax are not aligned, the gap shows up at the tax examination as an assessment you didn't budget for.

OAF helps contractors and construction companies keep project accounts, tax filings and cash flow telling the same story.

WHERE CONTRACTORS USUALLY LOSE MONEY

• Contract revenue. Revenue recognised by certificates, invoices or percentage of completion must match what the tax return reports, or the examiner will recalculate it.
• Withholding tax. Amounts deducted by clients and deducted from subcontractors are often not reconciled, so credits are lost and penalties appear.
• VAT. VAT on construction work, advance payments and subcontracting is easy to get wrong across long contracts.
• Project profitability. Without cost tracking per project, losses on one contract stay hidden behind profits on another.

HOW WE HELP

• External audit of contractor financial statements, ready for banks, clients and tenders.
• Tax advisory on withholding tax, VAT on contracting and tax examinations.
• Tax consulting on specific contracts, joint ventures and subcontracting structures.
• Financial consulting on project costing, cash flow and working capital.

WHY OAF

OAF is led by Dr. Mansour Etman, with more than 35 years of practice and over 200 clients. Our tax team includes former Directors-General of the Egyptian Tax Authority, so we review your contracts the way an examiner will, before the examiner does.

FREQUENTLY ASKED QUESTIONS

Can you prepare audited statements for tenders and bank facilities?
Yes. We audit contractor financial statements to the standard banks and project owners expect.

Can you reconcile years of withholding tax credits?
Yes. Reconciling withholding tax deducted and paid is one of the fastest ways contractors recover money and reduce examination risk.

Do you advise on joint ventures between contractors?
Yes. We advise on the tax and accounting treatment of joint ventures and consortium contracts before they are signed.

Book a consultation to review your contracts' tax and accounting position.