Request for Proposal (rfp) for the Appointment of a Service Provider to Conduct a Comprehensive Assessment of the Idc’s Doubtful Debt Allowance Position for Income Tax Purposes

T25/05/26

See details below or the tender documentation

Tender Closed on: 2026-06-04 11:00

Accounting Services, Consulting Services, Financial Services and Economics, Tax Consulting, VAT Review and VAT Recovery Services

Gauteng, Sandton

Industrial Development Corporation of South Africa Limited

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Industrial Development Corporation of South Africa Limited Tenders

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Tender Number: T25/05/26
Department: Industrial Development Corporation of South Africa Limited
Tender Type: Request for Bid(Open-Tender)
Province: National
Closing Date: Thursday, 04 June 2026 - 11:00
Place where goods, works or services are required: 19 Fredman Drive - Sandown - Sandton - 2146
Special Conditions: N/A
ENQUIRIES:
Contact Person: Lunga Mbatha
Email: [email protected]
Telephone number: 011-269-4376
FAX Number: N/A
BRIEFING SESSION:
Is there a briefing session?: NO Is it compulsory? NO
Briefing Date and Time:
Briefing Venue:

This tender is also available from www.etenders.gov.za


Tender Summary

Objectives

The primary objective of this tender is to appoint a qualified service provider to assess and substantiate an increase in the IDC’s doubtful debt allowance for income tax purposes from 40% to 85%. The assessment aims to produce a robust, technically sound application to SARS, reflecting the true economic substance of the loan portfolio, the IDC’s developmental mandate, and historical recovery trends.

Scope

The scope of work includes:

  • Assessing the IDC’s current doubtful debt allowance position for income tax purposes.
  • Preparing a comprehensive, substantiated application to SARS for an increased doubtful debt allowance up to 85%.
  • Demonstrating how the proposed allowance aligns with:
    • The economic substance of the loan portfolio.
    • The IDC’s developmental mandate and risk appetite.
    • Historical recovery and write-off experience.
  • Deliverables include a diagnostic report detailing portfolio risk characteristics, doubtful debt trends, write-off and recovery analysis, and SARS motivation and technical submission.

Technical Requirements

The service provider must:

  • Conduct a diagnostic analysis of the IDC’s loan portfolio and doubtful debt trends.
  • Prepare a detailed, technically sound application to SARS supporting an increase in the doubtful debt allowance to 85%.
  • Address certainty of recoveries, value principles, and compliance with SARS interpretation and prevailing practice.
  • Complete the assessment and submit the final report within two (2) months of contract award.

Skills Requirements

The bidder must demonstrate:

  • Relevant experience in South African corporate tax, particularly advising financial institutions on doubtful debt allowances.
  • Proven ability to prepare and submit technically motivated applications to SARS for debt allowance increases.
  • Key personnel qualifications, notably:
    • The Project Lead should be a qualified Chartered Accountant (CA) with at least five (5) years’ experience.
    • The team must have expertise in tax advisory, credit risk assessment, and forensic analysis related to doubtful debts.
This summary is AI generated. Download the tender documents for all the information.

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