Tax Law Income

Africa tax in short – April 2021

April 22, 2021

ANGOLA: 2021 State Budget Act approved

Law 42/20 of December 31, 2020 introduced a number of tax changes that approved the State Budget Law for 2021, including:

  • Introduction of a value added tax ("VAT”) Threshold of 10 million AOA. Companies or persons with sales or imports below this amount are not obliged to pay VAT.
  • Introduction of a simplified regime to replace the transitional regime. The new regulation applies to taxpayers (excluding taxpayers in the manufacturing sector) with sales or import transactions of a maximum of 350 million AOA in the last 12 months. Taxpayers under the scheme are subject to 7% monthly VAT on sales from non-VAT exempt businesses (including prepayments and services provided by non-resident businesses).
  • VAT on imports of certain agricultural inputs and basic food baskets at a reduced rate of 5%;
  • Payments to non-residents for oil operator services are subject to a 6.5% withholding tax. All other services that non-resident companies provide to Angola-based companies that are not oil operators are subject to a 15% withholding tax.
  • Introduction of a withholding tax of 2.5% on receipts at automatic payment terminals for the transfer of goods and services by VAT payers;
  • subject the transfer of movable property between spouses or relatives in ascending or descending line to property tax of 0.5% for amounts under 5 million AOA and 1% for amounts over 5 million AOA. With regard to other transfers, the rate is 1% for amounts up to AOA 5 million and 2% for amounts over AOA 5 million; and
  • Introduction of new rules for the special captive regime, according to which the tax administration can in all circumstances include or exclude taxpayers from this regime if this is justified for reasons of the protection of public revenues.

BOTSWANA: Guide to the VAT transitional provisions

The Botswana Unified Revenue Service published a Guide to Transitional VAT Regulations on March 10, 2021, informing the public and VAT registered persons of the impact of changing the VAT rate from 12% to 14% on existing agreements that are being entered into were based on the 12% rate.

It is emphasized that the notice contains information only and has no legal force. It neither binds the general commissioner nor restricts the taxpayers' rights of objection and complaint, as provided for in the VAT Act.

BURKINA FASO: Census of rental properties introduced

The regional tax director (Directeur régional des impôts) launched a comprehensive census campaign on March 23, 2021 involving all landlords, tenants and sub-tenants in the city of Ouagadougou and the surrounding area in order to expand the tax base for real estate. The campaign focuses on:

  • Compilation of a complete list of landlords, tenants and sub-tenants;
  • Conclusion of regular rental agreements; and
  • extend expired rental contracts.

BURKINA FASO: Introduction of the vehicle tax e-payment

The General Director for Taxes (Directeur général des impôts) announced in letter n ° 2021-0559 / MINEFID / SG / DGI / DI of March 23, 2021 the introduction of an electronic payment system for vehicle tax via mobile phones using specific codes.

BURKINA FASO: Postponed the introduction of the tax on financial activities

At the request of the Professional Association of Banks and Other Financial Institutions of Burkina Faso, the Minister of Finance postponed the introduction of the tax on financial activities (Tax sur les activités finanzière, FAT) introduced by the Finance Act 2021 of 1 February 2021 by letter no.2021-000215 of February 8, 2021. January 2021 to July 1, 2021.

CENTRAL AFRICAN REPUBLIC: The Finance Act 2021 introduces various tax changes

Law No. 20-25 of November 30, 2020 (Finance Law 2021) introduces a number of tax changes, including:

  • Increase in the withholding tax rate for goods imported for sale by taxpayers under the synthetic tax regime from 3% to 5%;
  • Introduction of a VAT deduction on the gross margin of beverage and cigarette wholesalers;
  • Increase in tariffs on importing or downloading software (with a value of 100,000 CFA) from 5% to 10%. Fraudulently imported or downloaded software is taxed at 30%.
  • Increase in tariffs on imports of wheat flour from 5% to 30%;
  • Introduction of a penalty for late payment of customs duties in the amount of 1.5% of the tax amount per month up to 50% of the amount due; and
  • Reduction of the notice period before a spot audit from five to two days.

COMOROS ISLANDS: The Finance Act 2021 introduces tax changes

Law No. 20-022 / AU of December 16, 2020 (Finance Law 2021) introduces a number of tax changes, including:

  • Reduction of the limit on deductible head office costs from 10% to 5% of the annual turnover achieved in the Comoros. The limit will be lowered from 5% to 2% for public construction companies and from 15% to 7% for consulting engineers.
  • Increase in the additional tax on business use from 10% to 30%;
  • Increase in the tax on the production of dry vanilla from 1% to 5% and of ylang-ylang oil from 1% to 7.5% of the export sales price;
  • Increase in the International Cooperation Fee for Imports (Redevance de Coopération Internationale, RCI) from 1.5% to 2.5%, with the exception of imports of computers, to which the previous rate applies;
  • Obligation of all importers, including diplomatic institutions, international organizations, associations and occasional importers, to register with their tax identification number (Numéro d & # 39; identification Fiskal, NIF);
  • Increase in post-tax penalties from 1.5% to 10% of the monthly tax, delayed from the due date; and
  • Obligation of taxpayers to give a guarantee if they object to a tax assessment.

DEMOCRATIC REPUBLIC OF CONGO: The Finance Act 2021 changes several tax regulations

Law No. 20/020 of December 28, 2020 (Finance Law 2021) introduces changes to various tax rules, including:

  • Expansion of the deductibility of the provision for dubious claims to microfinance institutions and confirmation of the deductibility of donations to the COVID-19 fund;
  • Introduction of a self-assessment procedure for VAT on imports. This procedure is to be determined by ministerial decree;
  • Introduction of a tax on the construction of petroleum pipes and royalties for their use in the hydrocarbon sector. The implementation is specified in a ministerial ordinance.
  • Extension of the deadline for responding to a request for information from 10 to 20 days after receipt of the request;
  • Extension of the deadline for invoking a tax certificate from seven to 20 days after receipt of the tax assessment;
  • Reduction of the deadline for a decision by the tax administration after appeal from six to three months. If this period is exceeded, the complaint is deemed to have been rejected;
  • Introduction of a late tax fine of 2% of the amount due for each month late from the tax due date;
  • Introduction of a three-month period to appeal against the decision of a tax administration to the administrative court; and
  • Introducing penalties for taxpayers who are non-tax exempt and who have not submitted their exemption certificate within 15 days of being granted.

ESWATINI / LESOTHO: Tax agreement comes into force

The income tax agreement between Eswatini and Lesotho signed on September 6, 2019 (2019) came into force on October 2, 2020 and is generally applicable from April 1, 2020 for other taxes and from November 1, 2020 for withholding taxes.

GHANA: COVID-19 measures announced

The 2021 national budget, presented to parliament on March 12, 2021, included various tax changes to mitigate the economic impact of the COVID-19 pandemic. Proposals, which will take effect if Parliament agrees, include:

  • 30% discount on income tax rates from hotels, restaurants, education, arts and entertainment companies, and travel and travel agencies for the remainder of 2021;
  • waiver of interest and penalties for accumulated tax arrears under certain conditions until December 2021 for taxpayers who arrange for the arrears to be settled by September 2021;
  • Suspension of quarterly payments for the second and fourth quarters of 2021 for small businesses using the income tax stamping system;
  • Suspension of quarterly vehicle income tax payments for the second through fourth quarters of 2021 for public transport companies;
  • unlimited extension of the tax exemption for capital gains from securities listed on the Ghanaian capital market;
  • Increase in the national health insurance fee from 2.5% to 3.5%;
  • Increase in the VAT rate from 3% to 4%;
  • Introduction of a restructuring levy for the financial sector of 5% on the pre-tax profit of banks, which will be reviewed in 2024;
  • Replacing individuals' tax identification and social security numbers with their national identification numbers in Ghana; and
  • Increasing tax audits and investigations focused on the extractive industries.

GUINEA: Extent of the income tax prepayment

Law No. L / 2020/0029 / AN of December 30, 2020 (Finance Law 2021) introduced an extended scope of the income tax advance payment. With effect from January 1, 2021, withholding tax will be due on all local purchases from:

  • Shipping companies, foreign non-governmental organizations and cooperation and development agencies;
  • subcontractors registered for VAT;
  • SIM card dealers and phone credit reloads (in physical or dematerialized form) registered for VAT; and
  • Intermediaries registered for VAT and involved in operations related to money transfers or payments by phone (mobile money).

Other changes introduced by the Finance Act 2021 include:

  • a VAT exemption for the import of raw materials and packaging for the production of wheat flour;
  • an obligation for notaries to submit a declaration of property transfer deeds to the tax authorities by July 15 and January 15 each year;
  • Introducing tax payment in installments for taxpayers with exceptional cash flow problems. The finance minister can also postpone paying the tax in the event of a natural disaster.
  • Introduction of electronic filing of tax returns and the submission of tax payments; and
  • Companies that have been granted tax exemption for an extension of an investment project must keep separate accounts for such a project.

KENYA: installment tax and minimum tax due by April 20th

The first payment of the installment tax for taxpayers with a accounting period ending on December 31, 2021 is due by April 20, 2021.

Under the Finance Act 2020, the taxpayer is instead subject to minimum tax if the installment tax payable by a taxpayer is lower than the minimum tax, which is calculated as 1% of a taxpayer's gross sales. The minimum tax for taxpayers with a reporting period ending December 31, 2021 is also due and payable by April 20, 2021.

Although a petition is currently being filed against the introduction of the minimum tax, the matter is still before the High the Court of Kenya, which has not yet made a decision. The provision is therefore still in force and the tax remains to be paid until April 20, 2021.

KENYA: President approves Business Law Amendment Act 2021

The President signed the Law on Economic Laws (Amendment) (No. 2) of 2021 on March 30, 2021. The law amends several laws to simplify the conduct of business in Kenya, including the Law on Contract Law, chap. 23; Stamp duty law, chap. 480; the National Hospital Insurance Fund Act (No. 9 of 1998); the Law on the National Social Insurance Fund (No. 45 of 2013); the company law. No. 17 of 2015 and the Bankruptcy Act No. 18 of 2015.

KENYA: Legal notice on tax exemption for Japanese companies published

Income Tax (Japanese Company Exemption), 2021, Legal Notice No. 15 of 2021, was published in the Kenya Gazette Supplement No. 17, Legislative Supplement No. 10 of February 26, 2021.

The legal notice provides for exemption from income tax, insofar as stated in the relevant financing agreements, income accrued in Kenya by Japanese companies, Japanese consultants and Japanese employees who were involved in projects under the financing agreements signed on Kenya originates corresponding data given in the appendix to the legal notice.

LESOTHO: The VAT rate for electricity rose from 9% to 10%.

In this 2022 budget speech on February 17, 2021, the finance minister announced a number of measures to increase government revenue, including:

  • Increase in the VAT rate for electricity from 9% to 10%;
  • Limiting VAT refunds for mining companies;
  • Introduction of an export sales tax on diamonds amounting to 15% of the mine rate; and
  • Introduction of an alcohol and tobacco tax of 15% and 30% respectively.

LIBERIA: Practical note on taxes on other services provided

The government has issued Practice Note No. PN-LRC-III-1021 / 1022-0902020-09 on the application of service tax to other taxable services in the areas of air travel, vehicle rental, communications, vehicle repair services, and professional services (excluding) medical Services) and port-related services on September 15, 2020, which came into effect on November 1, 2020.

The exercise note:

  • provides that a registered service provider or a person who provides a service withholds and transfers a service tax of 10% of the payments made and on or before the 21st day of the month following the day in which the payment was made has to file a service tax return;
  • lists taxable services in the areas of air travel, vehicle rental, automotive communications repairs, professional services and port-related services.
  • provides that any registered service provider or person providing taxable services who fail to comply with the provisions of the Practice Note will be penalized under the Liberia Tax Code.

The first service tax payment was due on December 21, 2020.

MAURITIUS: COVID-19 pandemic: due date for filing the tax return and extending the tax extension

In light of the second nationwide lockdown, which began on March 10, 2021, the Mauritius Revenue Authority ("MRA”) In a notice posted on its website on March 31, 2021, extended the due date for filing tax returns and paying tax payments due in March 2021 to April 30, 2021.

Small and medium-sized companies, whose turnover does not exceed MUR 50 million, also have until July 15, 2021 to submit their VAT return and to pay the VAT due for the February 2021 tax period.

MAURITIUS: COVID-19 Levy Guide published

The MRA published a COVID-19 tax guide on March 12, 2021, which stipulates that any employer who has benefited from an allowance under the wage benefit system is subject to the COVID-19 tax, which is based on the defined "taxable income" "Is calculated in relation to the valuation year ("YOA”) From July 1, 2020 (YOA 2020/2021), July 1, 2021 (YOA 2021/2022) or July 1, 2022 (YOA 2022/2023).

The guide contains a number of detailed scenarios and calculation examples to help employers calculate and transfer the correct amount of the levy to the MRA.

NAMIBIA: The Convention on Mutual Assistance applies in Namibia

On April 1, 2021, the OECD Council of Europe Convention on Mutual Administrative Assistance in Tax Matters, as amended by the 2010 Protocol, entered into force for Namibia. The Convention will generally apply in Namibia from January 1, 2022, but may apply to earlier periods between signatories if agreed, and applies to all periods in criminal matters.

NAMIBIA: Tax policy and administrative reforms announced

In his 2022 budget speech of March 17, 2021, the Finance Minister announced several reforms of tax policy and tax administration aimed at strengthening the principles of fairness and equity of the tax system and achieving better compliance through effective tax administration. Important announced measures are:

  • Establishment of the Namibia Revenue Agency on April 7, 2021;
  • a possible reduction in the corporate tax rate for non-mining companies (currently 32%);
  • Revision of the withholding tax rate for interest on investment funds in relation to Namibian companies;
  • Introduction of a withholding tax of 10% on dividends paid to individual Namibians;
  • Increase the total withholding tax on contributions to pension funds, retirement funds, retirement funds, education policies and long-term insurance from an annual amount of NAD 40,000 to a maximum annual amount of NAD 150,000;
  • VAT on sanitary towels at a rate of zero instead of 15%;
  • Introduction of 15% VAT on management fees charged by listed asset managers in line with management fees charged by unlisted asset managers; and
  • Improving VAT claims procedures to ensure taxpayers can expect to receive their claims within 90 days if there are no audit requests.

NIGERIA: Companies in free zones that file income tax returns

In a public notice posted on its website April 1, 2021, the Federal Inland Revenue Service (FIRS) announced that all eligible companies operating in Free Trade Zones, Export Processing Zones, and Oil and Gas Free Zones will file tax returns with effect from assessment year 2021 following the amendments to the 2020 Finance Act of the Nigerian Export Processing Zones Act and the Oil and Gas Free Trade Area Act.

Businesses must submit their returns to the FIRS offices in the geopolitical regions of Nigeria where they are located i.e. Port-Harcourt for businesses in the south, Engu for businesses in the southeast, Ibadan for businesses in the southwest, Kan for businesses in the northeast and Northwest companies and Abuja for North-Central companies.

Penalties for non-compliance with registration requirements are imposed under the provisions of the CITA and the FIRS (Establishment) Act 2007.

NIGERIA: Public notice of due dates for capital gains tax returns and issued payments

In a public notice posted on its website on April 1, 2021, FIRS announced that all persons (including companies, partnerships, executors, trustees, communities, families and individuals) who have disposed of taxable assets are obliged to do so To submit capital gains tax ("CGT”) Yield in accordance with the amendments of the Finance Act 2020 to the Capital Gains Tax Act.

Anyone who has disposed of taxable assets must calculate the amount of CGT due, submit self-assessment statements and pay the semi-annual tax. The due date for taxable assets sold between January 1 and June 30 is June 30, while the due date for taxable assets sold between July 1 and December 31 is June 31. December is.

For all taxable assets that were sold before January 1, 2021 (the date the Finance Act 2020 came into force), the tax return must be submitted by June 30, 2021 at the latest. Any tax due and unpaid by the due date will be subject to interest and penalties according to the current legislation.

NIGERIA: Introduction of an automated tax administration solution

In another public notice posted on its website on April 1, 2021, FIRS announced that it intends to connect its automated tax administration system to systems of relevant taxpayers in order to provide tax-relevant records, data or information, stored on computers or other electronic devices (including cloud computing facilities) that are maintained, operated, controlled or owned by these taxpayers or their agents.

This is also expected to include all relevant point of sale or billing platforms for all taxpayers (individuals, companies, companies and corporations). In addition, relevant persons must grant FIRS access to any computer, electronic device or cloud computing facility in which records, data or information are stored.

Failure to provide the FIRS with the required access will result in penalties equal to 100% of the amount of tax due under applicable tax laws upon conviction.

NIGERIA: Joint Committee to Review the Management of Incentives for Pioneer Status

The Nigerian Investment Promotion Commission and FIRS have set up a joint committee to review the management of the Pioneer Status Incentive ("PSI”). The joint committee will review PSI's current administrative policy, validate the cost of the incentive for Nigeria, and recommend changes to qualifications and management.

Under the PSI regime, qualified companies investing in industries identified as "pioneering" sectors are entitled to corporate tax leave for a maximum period of five years under the Industrial Development Act (Income Tax Relief) and the application guidelines for PSI by the Federal Ministry for Industry, Trade and Investment in August 2017.

NIGERIA: Guidelines for Issued Installment Tax Payments

Through a public notice posted on its website on March 30, 2021, FIRS requested companies wishing to make installment tax payments to submit a written application prior to the filing due date and provide evidence of full payment of the tertiary tax under the Tertiary Education Trust must be accompanied by Fund Act, 2011 and proof of payment of the first installment of corporate income tax due.

After an amendment to the Corporate Income Tax Act of 2019 ("CITA”) If every company is obliged to pay the tax due on or before the due date of filing in a lump sum or in installments, provided that the taxpayer pays in installments, the taxpayer must first write the first installment to the proof of payment of the Obtain approval from FIRS to pay the number of installments that may be approved by FIRS; and the final installment must be paid on or before the filing due date.

In line with the change in CITA, companies wishing to make installment payments must now pay 2% tertiary education tax and the first installment of their CIT before their application is approved by the FIRS. Any balance of taxes not paid on the due date will incur interest and penalties in accordance with the CITA or applicable law for non-payment on the due date.

NIGERIA: TAT rules on VAT on imported services and fees for foreign third parties

The Tax Appeal Tribunal ("DID”) On February 17, 2021, the Tourist Company of Nigeria Plc decided against FIRS (Appeal No. TAT / LZ / VAT / 033/2018) on the VAT treatment of imported services and top-ups from foreign third parties.

In the present case, the Tourist Company of Nigeria Plc ("TCN”) Is involved in the gaming and hospitality business, including running a casino in Nigeria. Sun International Management Limited ("SIML”), A related party based in South Africa, has been engaged to provide offshore management services for TCN. SIML did not include VAT on its invoices to TCN.

For certain services, SIML also subcontracts with third party providers in South Africa and charges relevant costs at no extra charge for TCN and other affiliated companies. SIML also did not include VAT on these top-ups. Ikeja Hotels Limited, a Nigerian company, provides TCN support services and has not added VAT to its bills.

TCN argued that VAT was not applicable to administration fees as the VAT Act at the time only required non-resident companies "doing business" in Nigeria to register and collect VAT. SIML was not present in any form in Nigeria and therefore VAT should not be charged. (Reverse VAT rules were introduced with the Finance Act of 2019, and subsequent court rulings upheld the obligation to charge yourself.)

TCN also argued that VAT does not apply to the charging of third party costs paid by SIML because SIML did not add value or consideration for services provided. Since the costs were incurred between two non-resident companies overseas, they should not be subject to Nigerian VAT.

The TAT stated that:

  • The administrative fees paid to SIML are subject to VAT regardless of whether SIML was registered or VAT was charged on their invoices, as the law did not specifically exclude the administrative services from VAT and therefore TCN should bill itself to remit the tax. The FIRS also relied on precedents that a non-resident company has with Nigeria when it has a contract with a Nigerian party.
  • SIML was just an agent contracting third parties on behalf of TCN. TCN's payments were therefore not reimbursements, but rather the fulfillment of TCN's obligations. The TAT referred to court rulings in which it was established that the client is actually liable for relevant obligations under the contracts if a client is disclosed. and
  • For services provided by local providers, the provider is an agent who collects VAT from its customers. However, if that provider does not do so, it does not mean that FIRS cannot reclaim the VAT from the relevant customers.

NIGERIA: TAT rules for presumed winning evaluations

With regard to the assumed profit valuation ("DPA”) Pursuant to Section 30 (1) B CITA, the FIRS can charge foreign companies to tax a fair and appropriate percentage of their turnover if it appears to the FIRS that the company has either no evaluable profits or evaluable profits are less than expected or the profits of such companies cannot be determined.

In practice, FIRS previously considered 20% of a company's sales to be taxable profit subject to corporate tax at the standard rate of 30%, resulting in an effective tax rate of 6% on sales. However, in 2015 this practice was reviewed and the FIRS directed that all overseas corporations with Nigerian operations should file tax returns based on their actual profits under Section 55 of the CITA.

In accordance with the FIRS directive of 2015, BJ Pumping Service SA Panama ("BJP”), A foreign company with Nigerian operations, filed its 2015-2017 income tax return based on its actual results, which did not represent a measurable profit. FIRS ignored the submitted returns, issued a data protection agency, and imposed a 6% tax on BJP's sales.

BJP objected and then appealed to the TAT, arguing that while FIRS has a discretion under Section 30 to levy taxes based on the company's sales, that discretion should only be exercised in circumstances where tax evasion oder Steuerumgehung festgestellt wurde. Es gab an, dass die FIRS keine detaillierte Analyse der von BJP erstellten Rückgaben durchgeführt habe, woraufhin die FIRS argumentierte, dass sie von der CITA nicht beauftragt worden sei, vor der Abgabe von Bewertungen Audits durchzuführen.

Die TAT entschied am 12. Februar 2021 in der Beschwerde Nr. TAT / LZ / CIT / 029/2018, dass die Präzedenzfälle erfüllt sein müssen oder eingetreten sein müssen, bevor die FIRS ihre Befugnisse gemäß Abschnitt 30 der CITA ausüben kann:

  • Für jedes Bewertungsjahr darf der Handel oder das Geschäft entweder keinen bewertbaren Gewinn erzielen. or
  • Gewinn, der nach Ansicht des Verwaltungsrats weniger als erwartet aus dem Handel oder Geschäft resultiert; or
  • Die tatsächliche Höhe des bewertbaren Gewinns des Unternehmens kann nicht ermittelt werden.

Es wurde vereinbart, dass das der FIRS eingeräumte Ermessen sehr weit gefasst ist und dass dieses Ermessen mit Bedacht und nach Treu und Glauben ausgeübt werden muss. Nach Angaben der FIRS konnte nach Durchsicht und Durchführung einer Prüfung der Steuererklärungen und Finanzdokumente von BJP durch das Desk Audit nicht vorgeworfen werden, die oben genannten Bedingungen nicht eingehalten zu haben.

Die TAT selbst führte eine umfassende Untersuchung der Steuererklärungen und Finanzdokumente von BJP durch und stellte fest, dass:

  • Die Umsatzkosten für 2015 wurden ursprünglich mit 2,1 Mio. USD angegeben, 2016 jedoch mit 5,3 Mio. USD angepasst, was einer Eskalation der Umsatzkosten um 153% trotz eines Rückgangs der Umsatzerlöse entspricht.
  • BJP hatte im Geschäftsjahr 2013 keine Forderungsausfälle, meldete jedoch 2014 einen Wert von 5,44 Mio. USD, der angepasst und 2015 auf 7,5 Mio. USD erhöht wurde. Für das Jahr 2015 wurden 6,21 Mio. USD ausgewiesen der Bewertung;
  • Im Jahr 2016 wurde ein Betrag von USD 2,7 Mio. als Wertminderung von Lagerbeständen und Vermögenswerten ausgewiesen. und
  • BJP hatte im Berichtszeitraum bedeutende Transaktionen mit verbundenen Parteien, die offenbar nicht durch einschlägige schriftliche Vereinbarungen gestützt wurden.

Die TAT betrachtete diese hervorgehobenen Lücken als „eine dicke Wolke, die eine rationale Steuerbehörde / -verwaltung dazu bringen würde, ihr Zelt mit einem DPA-Regime aufzubauen“ und bestätigte die Entscheidung der FIRS, Abschnitt 30 der CITA anzuwenden. Es wurde leider nicht über den tatsächlichen Umfang des Ermessensspielraums der FIRS gemäß dem Abschnitt gesprochen.

NIGERIA: Corporate Governance-Richtlinien für Versicherungs- und Rückversicherungsunternehmen herausgegeben

Die National Insurance Commission (“NAICOM”) Veröffentlichte am 17. März 2021 die Corporate Governance-Richtlinien für Versicherungs- und Rückversicherungsunternehmen in Nigeria 2021, um die Umsetzung des nigerianischen Corporate Governance Kodex zu unterstützen (“NCCG”) 2018. Die Richtlinien werden ab dem 1. Juni 2021 in Übereinstimmung mit dem Gesetz der Nationalen Versicherungskommission von 2004 (das“NAICOM Act”).

In Bezug auf die Richtlinien:

  • Es ist einer Person untersagt, gleichzeitig die Position des Vorsitzenden und des Geschäftsführers / Chief Executive Officers in verbundenen Versicherungsunternehmen zu übernehmen, und zwei Mitgliedern derselben Familie (nuklear und erweitert) ist es untersagt, die Position des Vorsitzenden und des Geschäftsführers / zu übernehmen. Chief Executive Officer einer Versicherungsgesellschaft;
  • Direktoren und Mitarbeiter von Versicherungs- / Rückversicherungsunternehmen haben dem Verwaltungsrat oder den Aktionären ihre Interessen an Rückversicherungsunternehmen, Versicherungsunternehmen, Takaful-Versicherungsunternehmen, Mikroversicherungsunternehmen, Versicherungsvermittlungsunternehmen, Schadenregulierungsunternehmen, versicherungsmathematischen Unternehmen, Buchhaltung / Steuern offenzulegen Firma, Wirtschaftsprüfungsgesellschaft oder Rechts- und Sekretariatsfirma; und
  • Alle Zahlungen, einschließlich Provisionen und / oder Gebühren, die an ein Unternehmen geleistet werden, an dem ein Verwaltungsratsmitglied oder ein Mitarbeiter beteiligt ist, müssen vollständig dokumentiert und dem Verwaltungsrat / den Aktionären mitgeteilt werden.

Die Nichteinhaltung der Richtlinien und des NCCG stellt einen Verstoß gegen die geltenden Bestimmungen des NAICOM-Gesetzes dar und wird nach Verurteilung mit einer Geldstrafe von mindestens 250 000 NGN und höchstens 500 000 NGN oder einer Freiheitsstrafe von höchstens NGN bestraft drei Jahre oder zu solchen Geldstrafen und Haftstrafen.

RWANDA: COVID-19-Pandemie: Neue wirtschaftliche Erholungsmaßnahmen eingeführt

Der Premierminister hat in seiner Ansprache vor dem Parlament am 25. März 2021 die Einführung besonderer Anreize zur Stimulierung der Investitionen des Privatsektors in Produktion und Bau im Rahmen der Initiative "Manufacture and Build to Recover Program" ("MBRP”).

Qualifizierte registrierte Anleger können ihren Antrag auf Anreize zur Unterstützung der Wirtschaft bei der Erholung von den Auswirkungen der COVID-19-Pandemie beim One-Stop-Center des Ruanda Development Board und / oder beim Incentive-Ausschuss einreichen.

Under the MBRP, registered investors involved in general construction projects with a value of at least USD10-million and factory construction projects with a value of at least USD1-million can benefit from exemptions from VAT and import duties on construction materials not available in the East African Community and an exemption from VAT on locally sourced materials.

Registered investors in the manufacturing sector can benefit from an exemption from VAT on locally sourced machinery and raw materials.

RWANDA: Application of new land tax rates suspended

The Ministry of Finance and Economic Planning released a communiqué on 17 March 2021 announcing that:

  • the application of the new land tax rates that were enacted in 2019 under law n°75/2018 of 07/09/2018 was suspended and that the rates levied under repealed law n° 59/2011 of 31/12/2011 are to be reinstituted. The applicable land tax rates (land lease fees) were between RWF0 and RWF80 per square meter, whereas the rates under the new law vary between RWF0 and RWF300 per square metre;
  • the deadline for payment of land tax is to be extended from 31 March 2021 to 30 April 2021; und
  • those who have already paid tax based on the new rates are allowed to carry forward the excess amounts paid to the next land tax period.

RWANDA: Deadline for filing certified financial statements extended

The Rwanda Revenue Authority (“RRA”), in an announcement on 11 March 2021, has extended the deadline for filing certified financial statements from 31 March 2021 to 30 April 2021 to address challenges faced by taxpayers and audit firms to certify financial statements owing to recent COVID-19 lockdown measures in the Kigali.

The extension only relates to the filing of certified financial statements and taxpayers must ensure that their income tax returns are filed and tax payments are made by 31 March 2021.

RWANDA: Guidelines on deductibility of expenses issued

Following the announcement by the RRA on 24 December 2020 that expenses not supported by electronic billing machine (“EBM”) invoices will not be accepted as deductible expenses, the RRA has issued the following guidelines on 3 March 2021:

  • EBM invoices will not be required in respect of:
    • imported services or payments made to suppliers of construction materials or services who are not registered for income tax purposes. The declaration of withholding tax on such payments shall be accepted as a valid supporting document of the expense incurred; und
    • trading licenses, various government fees and purchase and sales on which tax is withheld at 15%, bank charges and interest payments.

RWANDA: Partnership Law enacted

Rwanda has gazetted a Partnership Law, Law no 008/2021 of 16 February 2021, on 17 February 2021.

The law provides for various categories of partnerships (i.e. general partnerships, limited partnerships and limited liability partnerships) and allows the conversion of companies into limited liability partnerships.

According to the newly set up Kigali International Financial Centre, the law is expected to benefit international investors in private equity funds, fund management and professional firms such as law and audit firms.

It is expected that the income tax law is to be amended to subject partnerships to a pass-through tax regime, under which income derived by a partnership is taxed in the hands of the partners.

SEYCHELLES: Corporate Social Responsibility Tax repealed

The Minister of Finance, Economic Planning and Trade in his Budget Speech of 16 February 2021 announced the repealing of the corporate social responsibility (“CSR”) tax with effect from 1 April 2021 in order to provide relief to businesses. Currently, CSR tax is applicable to taxpayers with an annual turnover of at least SCR1-million at a rate of 0.5% on the monthly turnover.

The government also proposed to reduce business tax rates to apply uniformly to all sectors and businesses as follows:

  • 15% on profits of up to SCR1-million; und
  • 25% on profits above SCR1-million.

UGANDA: Various tax bills tabled in parliament

Uganda's Minister of Finance tabled several bills for the 2021-22 Budget for the first reading in parliament on 1 April 2021, including bills containing amendments to the Income Tax Act, the VAT Act and the Tax Procedure Code Act.

Significant proposed amendments include:

  • introducing a new definition of "beneficial owner";
  • introducing a new definition of "consideration", which includes the total amount in money or of payment in kind, paid or payable for the supply of goods, services, or sale of land by any person, directly or indirectly, including any duties, levies, fees, and charges other than tax paid or payable on, or by reason of, the supply, reduced by any discounts or rebates allowed and accounted for at the time of the supply or sale;
  • requiring taxpayers earning rental income from more than one rental building to account for income, expenses, and tax separately for each building;
  • repealing the tax exemption for income derived from agro-processing;
  • introducing a tax exemption for income derived from the manufacture of chemicals for agricultural use, industrial use, textiles, glassware, leather products, industrial machinery, electrical equipment, sanitary pads, and diapers;
  • introducing a tax exemption for manufacturers making a capital investment of at least USD50-million, with the conditions that at least 70% of raw materials are locally sourced, subject to availability, and that at least 70% of employees are Ugandan citizens earnings at least 70% of the total wages;
  • reducing the number of asset classes for depreciable assets from four classes to the following three;
  • allowing for capital gains tax purposes for an inflation adjustment of the cost base of assets sold after 12 months from the date of purchase according to a prescribed formula based on the consumer price index;
  • introducing a six-month time limit from the invoice date for claiming an input tax credit for VAT purposes;
  • introducing a quarterly VAT return filing requirement with returns due 15 days after the quarter (three-month) period for taxable persons supplying certain services to non-taxable persons in Uganda, including services in connection to immovable property in Uganda, radio or television broadcasting services received at an address in Uganda, electronic services delivered to a person in Uganda, the transfer, assignment, or grant of a right to use a copyright, patent, trademark, or similar right in Uganda; and telecommunication services other than those by a supplier of telecommunication services or services to a person who is roaming while temporarily in Uganda;
  • expanding VAT exemptions to include imported services if the service would be exempt if supplied in Uganda, supplies of liquified gas and the supply of services in the nature of feasibility study or design and construction to manufacturers qualifying for the tax exemption for investments of at least USD50-million;
  • removing VAT exemptions in respect of certain supplies provided to hotel or tourism facility developers with investment capital of at least USD10-million and to conference and exhibition facility developers with investment capital of at least USD300 000;
  • expanding VAT zero-rating to include supplies of leased aircraft, aircraft engines, spare parts for aircraft, aircraft maintenance equipment, and repair services are zero-rated; und
  • repealing the over-the-top tax for social media, along with the introduction of a 12% excise levy on internet data fees.

Subject to approval, the changes will generally apply from 1 July 2021.

UGANDA: Public Notice on digital tax stamps on sugar and cement issued

The Uganda Revenue Authority (“URA”) on 13 March 2021 issued a Public Notice regarding digital tax stamps on sugar and cement.

The Public Notice provides that:

  • in addition to beer, soda, spirits, wines, mineral water and tobacco products, effective 1 April 2021, all cement and sugar, whether locally manufactured or imported into Uganda, shall be affixed with digital tax stamps;
  • the transitional period of 1 April 2021 to 30 June 2021 has been granted during which every manufacturer, importer, distributor, agent or trader of sugar or cement shall be required to deplete all the unstamped goods; und
  • a taxpayer who fails to affix a tax stamp on goods is liable to pay a penal tax equivalent to double the tax due on goods or UGX50-million, whichever is higher.

UGANDA: Public Notice on 2022 withholding tax exemption applications issued

The URA on 4 March issued a Public Notice on withholding tax exemption applications for 2021/2022.

The Public Notice provides that the application process for withholding tax exemption for financial year 2021/2022 commences on 9 March 2021 and applications shall be received for a period of 30 working days, ending on 21 April 2021.

Once granted, the withholding tax exemption shall be valid for a period of 12 months beginning on 1 July 2021 and ending on 30 June 2022.

ZAMBIA: Country-by-Country reporting introduced

Zambia amended its Income Tax (Transfer Pricing) Regulations 2000 through the Income Tax (Transfer Pricing) (Amendment) Regulations 2020 to introduce Country-by-Country (“CbC”) reporting with effect from 1 January 2021.

The ultimate parent entity (“UPE”) of a multi-national enterprise group that is tax resident in Zambia with an annual consolidated group revenue exceeding EUR750-million (or its equivalent in Zambian kwacha) in the year immediately preceding the accounting year is required to file a CbC report with the Commissioner-General of the Zambia Revenue Authority (“ZRA”) by no later than 12 months after the last day of the reporting accounting year of the MNE group.

A Zambian entity which is neither the UPE nor surrogate parent entity (SPE) of the MNE group is still required to file a CbC report to the ZRA where:

  • the UPE is not required to file in its jurisdiction;
  • the jurisdiction of the UPE does not have automatic exchange of information with Zambia; or
  • there is a systemic failure in the automatic exchange of information.

ZIMBABWE: rate of interest on unpaid tax amended

Income Tax (Rate of Interest) Notice, 2021, Statutory Instrument No. 79 of 2021 published in the Supplement to the Zimbabwean Government Gazette on 19 March 2021 repeals the Income Tax (Rate of Interest) Notice, 2021, Statutory Instrument No. 55 of 2021.

The Statutory Instrument provides for the rate of interest on unpaid or overpaid income tax in foreign currency to be 10% for any month or part thereof during which tax remains unpaid with effect from 1 January 2020.

ZIMBABWE: Public Notice on submission of income tax returns issued

The Zimbabwe Revenue Authority issued a Public Notice providing that all persons who received taxable income or gains, or to whom taxable income or gains accrued from a source within or deemed to be within Zimbabwe, are required to submit income tax returns or capital gains tax Returns for the tax year ended 31 December 2020 as follows:

  • income from employment (non-final deduction system cases): subject to the specified conditions, persons in receipt of income from employment are required to submit Income Tax Returns (ITF 1) by 30 April 2021;
  • income from trade and investments: all taxpayers who were specified by the Commissioner General to be on self-assessment in terms of section 37A of the Income Tax Act (Chapter 23:06) are required to submit ITF 12C Returns, accompanied by the relevant financial statements, by 30 April 2021; und
  • income from disposal of specified assets and marketable securities: individuals and persons who disposed of specified assets and marketable securities in 2020, and did not submit capital gains tax returns are required to submit returns on Form CGT1 by 30 April 2021.