South Africa: Africa Tax In Brief

Last Updated: 20 February 2015
Article by Celia Becker

Most Read Contributor in South Africa, September 2016

ANGOLA: Extensive Tax Reforms introduced

On 15 December 2014, Legislative Presidential Decrees (LPDs) Nos. 324/14 and 325/14 were enacted. The LPDs provide for the internal regulation of the new unified tax administration (Administração Geral Tributária, AGT), which results from the merger of the National Tax Direction (Direcção Nacional dos Impostos) with the National Customs Service (Serviço Nacional das Alfândegas) and the Executive Project for Tax Reform (Projecto Executivo para a Reforma Tributária, PERT). The AGT aims at better management of non-oil tax revenue.

As part of a process of extensive tax reforms in Angola, the following updated legislation has been published: Investment Income Tax Code (Código de Imposto sobre a aplicação de capitais), Employment Income Tax Code (Código sobre os Rendimentos de Trabalho), Industrial Income Tax Code (Código do Imposto Industrial), Tax Enforcement Code (Código de Execuções Fiscais), General Tax Code (Código Geral Tributário) and Stamp Duty Code (Código do Imposto de Selo). We provide a brief overview of each of these below.

Investment Income Tax Code

An overview of Presidential Legislative Decree no 2/14 of 20 October 2014 revising the Investment Income Tax Code was published in our November 2014 newsletter.

Employment Income Tax Code

Law no 18/14 of 22 October 2014 introduces a new Angolan Employment Income Tax Code (EIT) and provides for three groups of taxpayers for employment income tax purposes, namely employees (Group A), independent professionals (Group B) and individuals deriving income from industrial or commercial activities (Group C).

Group A taxpayers are subject to EIT at the published progressive rates, Group B at a rate of 15% and Group C at a rate of 30% in general.

Exemptions from EIT include a family allowance of 5% of the basic salary amount, termination benefits not exceeding the limit established by the labour law, meals and transport subsidies not exceeding AOA30 000 per month and a Christmas and holiday bonus of up to 100% of basic salary.

Industrial Income Tax Code

Law no 19/14, enacted on 22 October 2014, introduces a new Industrial Tax Code with a new withholding tax regime, effective from 1 January 2015.

Under the new regime, taxpayers subject to the Industrial Tax with a head office, place of effective management or permanent establishment in Angola that render any services will be subject to withholding tax at a rate of 6.5%. In addition, such services rendered by non-resident entities without a permanent establishment will also be subject to such tax, irrespective of where the service is rendered.

The following services are expressly excluded from the withholding tax: telecommunication services, hotel and similar services, financial intermediation and insurance services, educational services, medical care services, transportation of passengers, rental of machinery which give rise to the payment of royalties under the Investment Income Tax Code and any services not exceeding AOA20 000.

Currently, withholding tax is imposed only on construction projects and subcontract activities at a rate of 3.5% and on technical, management and similar services at a rate of 5.25%.

Tax Enforcement Code

The new Tax Enforcement Code (Law no 20/14) was approved and published by the Angolan Government on 22 October 2014 and will become effective on 1 January 2015. The Code provides for the execution process over tax debts and replaces the Simplified Tax Enforcements Regime, approved by Presidential Decree Law no 2/11 of 9 June 2011.

The Law specifically provides for an exceptional tax debt amnesty program in respect of periods ending on 31 December 2012, in terms of which full waiver can be granted in respect of taxes (industrial tax, personal income tax, stamp duty, investment income tax and urban property tax) and related penalties and interest due.

The amnesty does not apply to customs debts, social security contributions or companies subject to the special oil and mining tax regimes.

General Tax Code

Law 21/14 of 22 October 2014 approved the General Tax Code and revokes the previous Code. The new Code establishes the general principles applying to tax benefits (their creation, classification, access, publication and expiration), deals with prescription periods and tax procedures, including review of assessments, tax inspections and offences.

Stamp Duty Code

The revision and republication of the Stamp Duty Code was approved by Presidential Decree no 3/14 on 21 October 2014. In terms of the revised Code (effective from the date of its publication), the following transactions are exempt: marketable securities transacted on the capital market, real estate transactions resulting from a merger, demerger or incorporation under the Commercial Companies Code, Labour agreements, exports and the free transfer of property between parents and children.

Angolan entities entering into contracts with non-resident entities are subject to a self-assessment mechanism whenever the transaction is subject to stamp duty. The stamp duty rates as per the General Table of the Stamp Duty Code have also been amended by the Decree.

BENIN: Detail of treaty with United Arab Emirates available

Details of the United Arab Emirates-Benin double tax agreement, signed on 4 March 2013, have become available. The treaty was concluded in the Arabic, English and French languages, all texts being equally authentic. In the case of divergence, the English text prevails. The treaty generally follows the OECD Model (2010).

BURUNDI: 2015 Budget announced

On 17 December 2014, a local Taxation Reform Bill was presented to the Council of Ministers by the President. The Bill aims at improving the local tax system in order to increase the municipalities' tax receipts. The Council of Ministers adopted the Bill which will be presented to the National Assembly shortly.

On 22 December 2014, the Budget Bill 2015 ("the Bill") was presented to the National Assembly. Significant proposed amendments include:

  • The provisions of Law No. 1/23 of 24 September 2009, as inserted in the Investment Code, which grant tax credits against corporate income tax, are repealed for 2015.
  • The provisions of the Investment Code and Free Zone Area Regulations granting exemptions from VAT on the import of goods are repealed for 2015.
  • The tax on incoming international telephone calls which was introduced by the Amending Budget Law 2014 is maintained but applies at the rate of BIF 42 per minute.
  • Taxpayers are obliged to pay 30% of the amount of tax dispute prior to initiating legal proceedings against the tax administration.
  • the rendering of services in general is subject to a 1% withholding tax on the transaction value. The Minister of Finance will issue further regulations listing the services subject to such tax and its modalities.

COMOROS ISLANDS: 2015 Finance Bill presented to the National Assembly

In terms of the 2015 Finance Bill, presented on 1 November 2014, taxpayers deriving income from business activities not registered at the National Register of Tax Identification Numbers are subject to a minimum income tax at the rate of 5%, capital gains are to be subject to 20% tax and a reduced rate of consumption tax is introduced.

GHANA: eTax Portal launched

The Ghana Revenue Authority (GRA) taxpayer portal was officially launched on 4 November 2014 by the Ministry of Finance and Ghana Community Network Services Limited and provides for online services in respect of registration, tax management, tax return filing, tax payments and exemption applications.

GHANA: Internal Revenue (Amendment) Bill, 2015 presented to Parliament

On 9 December 2014, the Minister of Finance presented the Internal Revenue (Amendment) Bill, 2015 to the parliament to give legislative effect to the changes announced in the Budget Speech of 19 November 2014, including:

  • Introduction of a Special Petroleum Tax of 17.5%;
  • Extension of the National Fiscal Stabilisation Levy of 5% and special import levy of 1 – 2% to 2017;
  • Imposition of value added tax (VAT) on fee-based financial services;
  • Imposition of a 5% flat rate VAT on real estate transactions;
  • Increasing the withholding tax rate on directors' remuneration from 10% to 20%; and
  • Increasing the tax rate applicable to free zone enterprises from 8% to 15% after the expiration of the 10 year tax holiday.

GHANA / KENYA: Treaty negotiations underway

Following a meeting held in Nairobi on 13 December 2014, negotiations for a tax treaty between Ghana and Kenya are underway. The treaty is expected to be signed in the near future.

GUINEA: Details of treaty with the United Arab Emirates available

Details of the United Arab Emirates-Guinea tax treaty (2011), signed on 13 November 2011, have become available. The treaty was concluded in the Arabic, English and French languages, all texts being equally authentic. In the case of divergence, the English text prevails. The treaty generally follows the OECD Model (2010).

KENYA: Capital gains tax guidelines published

Following the reintroduction of the Kenyan capital gains tax (CGT) regime with effect from 1 January 2015, the Kenya Revenue Authority on 12 December 2014 published guidelines on its website regarding the application of the legislation, effectively summarising the provisions of the Eighth Schedule to the Income Tax Act ("the Act") which deals with CGT.

KENYA: Belgium treaty update

As per the Belgian government's tax treaty negotiation priorities for the year 2015 published on 8 January 2015, a second round of negotiations for a tax treaty between Belgium and Kenya is scheduled to take place in mid-2015, following the first round of negotiations held from 20 to 24 October 2014.

KENYA: Details of treaty with the United Arab Emirates available

Details of the Kenya / United Arab Emirates double tax agreement, signed on 21 November 2011, have become available. The treaty was concluded in the Arabic and English languages, both texts being equally authentic. In case of divergence in the interpretation, the English text prevails. The treaty generally follows the OECD Model (2010).

KENYA: Guidelines on importation of industrial spare parts issued

On 31 December 2014, the Kenya Revenue Authority issued Guidelines on the Importation of Industrial Spare Parts by Registered Manufacturers (the Guidelines) pursuant to Item 3I of Part B to the 5th Schedule of the EAC Customs Management Act, 2004 ("the Act").

MAURITIUS: Treaty with Swaziland signed

On 11 November 2014, Mauritius and Swaziland signed a double tax agreement in Port Louis. Once in force and effective, the new treaty will replace the Mauritius - Swaziland Income Tax Treaty (1994).

NIGERIA: 2015 Budget proposal presented to National Assembly

On 17 December 2014, the 2015 Budget proposal was presented to the National Assembly by the Minister for Finance and Coordinating Minister for the Economy. Proposed tax amendments include:

  • a review of the existing tax waivers and exemptions, including considering whether upstream oil companies and other entities are entitled to pioneer status;
  • potentially increasing the VAT rate in order to align it with the VAT rates in other West African countries;
  • 5% import surcharge on luxury cars;
  • 10% import surcharge on new private jets;
  • 39% import surcharge on luxury yachts;
  • 3% luxury surcharge on champagne, wine and spirits;
  • surcharge on business and first-class airline tickets; and
  • tax at 1% on residential properties located within the Federal Capital Territory (FCT) with a value of NGN 300 million and above.

RWANDA: Treaty with Barbados signed

On 22 December 2014 Barbados and Rwanda signed a double tax agreement in London.

SENEGAL: Treaty with Iraq authorised

The Iraqi Council of Ministers authorized the Minister of Finance on 13 January 2015 to negotiate and sign a double tax agreement with Senegal.

ZAMBIA: Taxation Bills, 2014 approved by Parliament

On 17 December 2014, the parliament approved the following five taxation bills that had been presented by the Minister of Finance on 28 November 2014:

  • Income Tax (Amendment) Bill, 2014;
  • Customs and Excise (Amendment) Bill, 2014;
  • Value Added Tax (Amendment) Bill, 2014;
  • Property Transfer Tax (Amendment) Bill, 2014; and
  • Mines and Minerals Development (Amendment) Bill, 2014.

The amendments include significant amendments to the mining tax regime. With effect from 1 January 2015, open cast and underground mining operations are exempt from corporate income tax, but will be subject to a final 8% mining royalty in respect of underground mining operations and a 20% mining royalty in respect of open cast mining operations. Zambia has already doubled mineral royalties to the 2014 rate of 6% in 2011.

The new tax system aims to collect mining revenue at different stages in the production process with 30% corporate income tax to be levied on income earned from the processing of purchased mineral ores, concentrates and any other semi-precious minerals, as well as income earned from tolling (an agreement between the owner of raw materials and another party for processing such materials).

These changes will not apply to the mining of industrial minerals such as lime, sand and gravel.

ZIMBABWE: 2015 Budget presented to Parliament

The 2015 Budget Statement and Bill for the Finance Act (No.3 ) Act, 2014 was presented to Parliament on 27 November 2014. Proposed amendments include:

  • A reduced corporate income tax rate applicable to export companies. Depending on the export threshold, the applicable rate is 15%, 17.5% or 20%.
  • With effect from 1 January 2015,special mining leases and mining operations are subject to the 3% AIDS levy.
  • Foreign agents' fees for the pre-selling and marketing of exports are to be exempt from withholding tax, provided that such fees do not exceed 5% of the value of exports.
  • Companies that have not carried on any trade or business during a year of assessment commencing on or after 1 January 2015 will not be penalised for failing to furnish a return, provided they have supplied the Commissioner with a sworn written declaration to such effect within 30 days of the notice by the Commissioner regarding the submission of returns for each year of assessment.
  • The prescribed period for deferment of VAT on capital goods is to be extended to a maximum of 180 days with effect from 1 January 2015.

In terms of the Finance (No. 2) Act, 2014 and the Finance Act (Tax Amnesty Regulations, 2014), Zimbabwe's tax amnesty program provides for:

  • Amnesty in respect of interest and penalties on unpaid income tax, capital gains tax, customs and excise duties, value added tax and stamp duties for the period 1 February 2009 to 30 September 2014.
  • A single amnesty application is to be submitted per applicant to ZIMRA before 31 March 2015 with full disclosure of the unpaid tax with relevant supporting documents.
  • The deadline for payment is to be extended from 31 March 2015 to 31 December 2015.

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.

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”

Mondaq Advice Centre (MACs)
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
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

Use of

You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). 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 & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.


Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd 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 or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.


Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.


A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.


This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.


If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.


This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at and we will use commercially reasonable efforts to determine and correct the problem promptly.