South Africa: Africa Tax In Brief

Last Updated: 27 February 2014
Article by Celia Becker

Most Read Contributor in South Africa, September 2018

ANGOLA: 2013 Transfer pricing requirements

Angola published new transfer pricing documentation rules as part of Presidential Decree 147/13 on 1 October 2013, which became effective five days after publication. All taxpayers reporting 2013 revenue in excess of 7 billion kwanzas (approximately USD70 million) are obliged to prepare and submit transfer pricing documentation by 30 June 2014.

All related party transactions involving goods, rights, services or financial operations, irrespective of their value, should be documented in Portuguese. The OECD guidelines have not been adopted by Angola and the only acceptable pricing methods are the comparable uncontrolled price, resale price and cost plus methods.

According to Presidential Decree 66/11 of 18 April 2013, taxpayers not complying with the transfer pricing documentation requirements will be prohibited from performing capital transactions or trading operations that require intervention by the National Bank of Angola in terms of exchange control regulations.

The Tax Authorities are allowed to make transfer pricing adjustments in respect of the last five years and any adjustments made will be subject to a penalty of 50% of additional tax and interest at 2.5% per month.

BOTSWANA: 2014 Budget overview

The Botswana 2014 Budget was presented to the national assembly on 3 February 2014, announcing that amendments to the Income Tax Act and VAT Act will be presented to parliament during the 2014/15 fiscal year, including a proposed VAT zero rating for farming equipment and basic foodstuffs and increasing the VAT registration threshold from P500 000 to P1 million in order to provide relief to small taxpayers.

GHANA: New VAT Act promulgated

The Value Added Tax Act, 1998 (Act 546) as amended, has been repealed and replaced by the Value Added Tax Act, 2013, (Act 870) (the new VAT Act) with effect from 31 December 2013.

One of the most significant amendments is the increase in the standard VAT rate from 12.5% to 15%. The National Health Insurance Scheme Levy (NIHL) charged on goods and services supplied in or imported into Ghana and collected with VAT remains at 2.5%. As a result, the standard aggregate VAT and NHIL rate on the taxable supply of goods and services is increased from 15% to 17.5%. The VAT rate on VAT/NIHL invoices issued in respect of taxable supplies is to be manually adjusted from 12.5% to 15%. Taxpayers who have been authorised by the Ghana Revenue Authority (GRA) to use their own computer-generated invoices or electronic cash registers are required to re-programme their equipment to ensure that VAT is charged at the rate of 15%.

The allowable period for claiming input VAT in respect of expenses incurred has been reduced from three years to six months. In practice, all taxpayers who are in possession of valid VAT/NIHL invoices for input claims which are more than six months old should claim such amounts in their December 2013 VAT returns, which were due for submission by no later than 31 January 2014.

The new VAT Act also extends the application of VAT to a number of business activities which hitherto fell outside the VAT net, including the sale of immovable property by an estate developer, the supply of financial services rendered for a fee, supply of domestic transportation of passengers by air and the supply of haulage as well as the rental or hiring of passenger and other vehicles, the business activities of auctioneers and promoters of public entertainment and the manufacture or supply of certain pharmaceuticals.

GHANA: Mining Windfall Profit Tax on hold

The Ghanaian President announced on 22 January 2014 at the World Economic Forum in Davos that the introduction of the Windfall Profit Tax announced in the 2014 Budget in November 2014 is to be placed on hold. The main reason for this decision is a concern by the President that mining companies will lay off workers to cover the additional tax cost. The tax was initially introduced in 2012 as an additional 10% tax on mining companies.

GHANA:New Foreign Exchange Control rules

Ghana introduced strict new foreign exchange control rules with effect from 5 February 2014. The new provisions include a ban on dollar transactions for purchases and sales within Ghana, the requirement that exporters have to convert their export proceeds into local currency after 30 days and a limit on dollar cash withdrawals of USD10,000.

The cedi has weakened significantly following the introduction of the new rules.

KENYA: New Social Security Funds launched

With effect from 31 May 2014, the National Social Security Fund (NSSF) Act establishes two new funds; the Pension Fund and Provident Fund, which replaces the existing Provident Fund.

The repealed NSSF Act required employees and employers to each contribute 5% of the employee's monthly pensionable earnings to the Provident Fund, with the contribution being capped at KShs200 per month. In terms of the new Act, the employer and employee each has to contribute 6% of the employee's monthly pensionable earnings (with an upper annual limit of KShs18 000), with the contribution being capped at KShs2 160 per month.

MAURITIUS: Exchange of Information Agreement signed with the USA

Mauritius and the United States of America signed a Tax Information Exchange Agreement (TIEA) and an Inter-Governmental Agreement (IGA) for the implementation of the Foreign Account Tax Compliance Act (FATCA) between the two countries on 6 January 2014.

The main objective of the FATCA, enacted in March 2010 by the USA, is to identify US persons behind foreign financial holdings and communicate their corresponding investment information to the US Internal Revenue Service.

MOZAMBIQUE:Coal tax may be increased

The Mozambique Minister of Mines announced in February 2014 that Mozambique is in the final stages of preparing a new fiscal regime for its mining and petroleum sectors, which may include an increase in royalty taxes for coal by the end of the year.

Royalty taxes on coal is currently levied at 3%, lower than the 5% for base metals and 10% for diamonds.

NAMIBIA: Vocational Education and Training Levy effective from 1 April 2014

The imposition of the vocational education and training levy (VET levy), which was due to come into effect on 1 September 2013, has now been gazetted with an effective date of 1 April 2014.

The levy is due by employers exceeding the annual payroll threshold of N$1 million (originally N$350 000) at 1% of the total remuneration payable to employees during any financial year (originally 5%).

The levy is payable by the 20th of each month to the National Training Authority, with the first payment due by 20 May 2014. Employers required to register for the VET levy must apply for registration by no later than 26 February 2014.

NIGERIA: Housing Fund contributions to be resumed

In terms of the National Housing Fund Act every employer is required to deduct 2.5% of employees' monthly basic salary and pay such amount over to the National Housing Fund administered by the Federal Mortgage Bank of Nigeria (FMBN) which was set up to provide affordable housing and effective financing of housing developments.

The Nigerian Labour Congress (NLC) and Nigeria Employers Consultative Association (NECA) directed that employers should suspend contributions to the Fund, following concerns raised by employees regarding the effectiveness of the scheme.

On 28 October 2013 stakeholders, including representatives of the NLC, the Trade Union Congress, the NECA and the FMBN, signed a Memorandum of Understanding (MOU), agreeing to refocus efforts to ensure that the NHF scheme is able to deliver on its original promises. As part of the MOU, it was agreed that all Nigerian workers are to resume contributions under the scheme and employers are required to remit such contributions to the FMBN with immediate effect. No guidance has been provided in respect of the implications of non-compliance.

NIGERIA: 2014 Budget overview

The Nigerian government's draft budget was presented on 19 December 2014, indicating that the government will continue to seek to expand non-oil revenue, promote growth in the power, agricultural, sold minerals, health and education sectors and intensify efforts to plug tax loopholes.

Expected policy actions include encouraging the local production and assembly of vehicles in Nigeria by levying an import tariff of 70% of the cost of new and used vehicles and providing for a five to ten year tax holiday for local manufacturers of tyres.

Nigeria's Petroleum Industry Bill, which is Nigeria's comprehensive oil and gas legislation, is expected to become law before 2015.

TANZANIA: Electronic Communication Services excise duty increased

In July 2013 the Tanzanian government introduced a new simcard tax of TZS1,000 per month and increased the excise duty on electronic communication services from 12% to 12.5%.

The basis for application of the simcard tax has been disputed by members of the Mobile Operators Association of Tanzania (MOAT) in an appeal to the Tax Revenue Appeals Board (TRAB), but the claim has been rejected by the TRAB. However, subsequently a deed of settlement has been entered into between the Tanzanian government and MOAT, in terms of which it was agreed that the excise duty on simcards will be scrapped and the excise duty rate on electronic communication service will be increased from 14.5% to 17% with effect from 1 January 2014.

ZIMBABWE: 2014 Budget overview

Zimbabwean Finance Minister Patrick Chinamasa presented the 2014 Budget to parliament on 19 December 2013.

Proposals include a tax deduction in respect of contributions or donations by a taxpayer to a community share ownership trust or scheme in terms of the Indigenisation and Empowerment Act and interest payable by an indigenous person on any loan advanced to purchase shares in terms of an approved indigenisation implementation plan. It is also proposed that amounts received by or accrued to a person form the sale or disposal of shares to an indigenous person or a community share ownership trust or scheme should be exempt from capital gains tax.

A revenue sharing formula of 10% on gross proceeds of diamond sales is proposed with effect from 1 January 2014. The amount is to be withheld at source, after conclusion of each sale. In addition, it is proposed to disallow mining royalties as a deduction for income tax purposes as of the same date.

Withholding tax on the payments for services rendered in Zimbabwe by non-resident artists or entertainers is to be increased from 10% to 15%. The Intermediated Money Transfer Tax, levied at 5% per transaction, is to be extended to mobile banking service providers and it is proposed that an additional road levy of 2c/litre on petrol and 1c/l on diesel respectively be levied to service the loan funding by the Development Bank of South Africa for the reconstruction of the Plumtree / Mutare Road.

A VAT exemption for electricity imports is proposed, while the highest marginal personal income tax rate is to be increased to a flat tax of 50% on income exceeding USD20 000 with effect from 1 January 2014.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

Similar Articles
Relevancy Powered by MondaqAI
Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Related Topics
Similar Articles
Relevancy Powered by MondaqAI
Related Articles
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Registration (you must scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of

To Use you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions