Most Read Contributor in South Africa, September 2016
NAMIBIA: Large Taxpayers' Office launched
With effect from July 2014 large taxpayers, including companies
and insurers with turnover in excess of N$75 million per year,
mining companies and banks (including micro-lending institutions)
are to be managed by the Large Taxpayers' Office (LTO) located
in the Millennium Building, at the corner of Robert Mugabe Avenue
and Dr.A.B. May Street.
The LTO is planning to introduce specialised units focusing on
mining taxation, transfer pricing and thin capitalisation.
NIGERIA: Non-resident companies to file tax returns with
audited financial statements
In terms of a practice based on section 30 of the Nigerian
Income Tax Act, 2004, non-resident companies operating in Nigeria
were allowed to file their companies income tax returns on a deemed
profit basis. (The Federal Inland Revenue (FIRS) prescribed that a
deemed profit of 20% of turnover was to be taxed at the corporate
income tax rate of 30%)
At a stakeholder meeting of 24 July 2014, the FIRS announced
that the income tax returns filed by foreign companies doing
business in Nigeria will no longer be accepted unless accompanied
with audited financial statements as well as, inter alia,
tax and capital allowance computations as required by section 55 of
the Income Tax Act.
It is understood that this new position of the FIRS has been
introduced as a result of the implementation of transfer pricing
regulations and is intended to provide the FIRS with useful
information to ensure full tax compliance and address potential
transfer pricing issues.
RWANDA: New double tax agreement with Mauritius in
The Mauritius Ministry of Finance and Economic Development on 19
August 2014 published a communique announcing that the new double
tax agreement signed between Mauritius and Rwanda on 20 April 2013
entered into force on 4 August 2014.
The provisions of the new treaty shall apply in Rwanda in
respect of any year of income commencing on or after 1 January 2013
and in Mauritius in respect of any period commencing on or after 1
ZAMBIA: Tax rules on copper exports to be relaxed
The Zambian government announced on 26 August 2014 that it
intends to ease the tax rules on copper exports by scrapping the
requirement that copper mining companies are to present import
certificates from destination countries in order to claim Value
Added Tax (VAT) refunds. Many companies sell minerals to brokers,
making it virtually impossible for them to obtain the required
import documentation from destination countries. More than USD600
million has been accumulated in value added tax refunds since last
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Effective collaboration amongst government agencies, automation of processes and capacity building by tax authorities have always been identified by stakeholders as strategies for achieving an efficient tax system.
In response to information provided by FIRS, NSE has sent letters to publicly listed companies, who were purportedly identified by FIRS as non-compliant.
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