South Africa: Africa Tax In Brief - March 2017

Last Updated: 14 June 2017
Article by Celia Becker

Most Read Contributor in South Africa, July 2017

ANGOLA: Budget Law, 2017 details published

On 10 February 2017, the provisions of Budget Law, 2017, enacted on 31 December 2016, were published.

In terms of the Budget Law, 2017 the 10% withholding tax on technical services and management fees paid to non-residents for the provision of foreign technical assistance or management services (Contribuição Especial sobre as Operações Cambiais de Invisíveis Correntes), which was introduced by Law No. 3/15 of 9 April 2015 and regulated by Presidential Legislative Decree No. 2/15 of 29 June 2015, continues to apply.

BURUNDI: Finance Law, 2017 details published

The provisions of Finance Law, 2017, enacted on 31 December 2016, have been published. Significant amendments, which apply with effect from 1 January 2017, include:

  • the continued application of the minimum lump-sum tax at a rate of 1% of annual turnover to both residents and non-residents deriving income in Burundi;
  • an income tax exemption for interest on treasury bills and bonds;
  • the continued use of cost, including insurance and freight costs, increased by customs duties and related charges, as the value-added taxable ("VAT") base of oil products;
  • establishing that the VAT on the provision of goods or services to the state is payable at the time of payment of the goods or services by the customer;
  • amendment of the general consumption tax rates applicable to beverages and cigarettes;
  • introduction of an anti-pollution tax to be imposed on used vehicles and imported plastic bags as from 1 January 2017 at the following rates:
    • BIF200 000 per used vehicle; and
    • 50% of the customs value (FOB) on imported plastic bags; and
  • introduction of a security fee at a rate of 1.5% of the value of imported merchandise. Merchandise imported to the presidency of the republic, national defence or national police is exempt from the fee.

GABON: Clarification on implementation of national solidarity sales tax under Finance Act, 2017

The following changes were agreed to on 28 February 2017 with respect to the implementation of the national solidarity sales tax (contribution spéciale de solidarité or "CSS") under Finance Act, 2017:

  • postponement of the entry into force from 1 March 2017 to 15 March 2017;
  • allowing the CSS as a deductible expense for corporate income tax purposes, subject to confirmation by an amendment to the enacted Finance Act, 2017; and
  • clarification that both the CSS and VAT will apply on the invoice amount before tax.

GHANA: Budget for 2017

The Minister of Finance presented the Budget for 2017 to Parliament on 2 March 2017. Significant proposed amendments include:

  • exempting gains realised from the sale of securities listed on the Ghana Stock Exchange or publicly held securities approved by the Securities and Exchange Commission from capital gains tax;
  • granting tax credits and other incentives for businesses that hire young graduates;
  • undertaking a comprehensive review of the import duty waivers and tax exemptions granted to the various categories of persons in Ghana;
  • abolishing the collection of VAT and the National Health Insurance Levy on financial services, selected imports and medicine not produced locally, domestic airline tickets and real estate sales;
  • reducing the VAT rate for traders from 15% to 3%;
  • exempting the financial services industry from the payment of stamp duty for two years;
  • abolishing the imposition of the special import levy;
  • reducing the special petroleum tax from 17.5% to 15%; and
  • reducing the national electrification scheme levy rate from 5% to 3% and the public lighting levy from 5% to 2%.

LIBERIA: Ease of doing business reforms proposed

The Business Reform Committee on 14 February 2017 made the following recommendations to improve the business climate and the ease of doing business in Liberia:

  • passing the new Customs Code;
  • fast-tracking the implementation of the single window and verification of conformity contracts;
  • reducing customs re-inspections and its impact on medium and small-scale enterprises;
  • conducting a national review of fees and charges with the aim of reducing the costs of imports and exports;
  • reducing the number of procedures and fees for obtaining construction permits; and
  • signing the Insolvency Bill.

MALI: Draft decree amending General Tax Code adopted

On 3 March 2017, a draft decree was adopted that amends Decree No. 2012-277 / P-RM of 13 June 2012, laying down detailed rules for the application of certain provisions of the General Tax Code. Significant amendments include extending the concept of transfer pricing to transactions involving the purchase and sale of physical goods between affiliated companies.

NAMIBIA: Inland Revenue Department no longer accepting cheque payments

A press release dated 30 January 2017 serves to inform all taxpayers that, with effect from 1 June 2017, Inland Revenue Department will no longer accept cheques (including guaranteed cheques) as a means of payment for taxes.

Taxpayers are encouraged to make use of online banking facilities to do Electronic Fund Transfers for all tax payments or, alternatively, use a point of sale device, cash or direct deposits as a method of payment. Point of sale devices (speed point machines) are now available at all Inland Revenue offices countrywide, except for satellite offices.

The initiative by Inland Revenue follows on the issuing of a Public Notice by the Payment Association of Namibia that cheques will be completely phased out on 31 December 2017.

NIGERIA: NSITF and NECA agree the basis for employee compensation contributions

The Nigeria Social Insurance Trust Fund ("NSITF") entered into an agreement with the Nigeria Employers' Association ("NECA") regarding the basis for calculating contributions under the Employees' Compensation Act ("ECA"), 2010.

The ECA was signed into law in January 2011 and gazetted in July 2011, causing controversy with respect to the effective date for the commencement of the law. The NSITF and NECA had previously agreed to a forbearance of outstanding contributions for the period from 1 July 2011 to 31 December 2011 for members of NECA.

The new agreement, effective from 1 January 2017, provides further clarity on the following items:

  • reiterating the forbearance period for NECA members and stating that the waiver would be considered on a case-by-case basis, subject to compliance with the ECA from 1 January 2012;
  • agreeing that the definition of "remuneration" would be used for payroll excluding pension contribution, bonuses, overtime payments, irregular one-off payments like drivers' allowances, etc; and
  • agreeing that response to long-standing claims must be resolved within four weeks after receipt of a formal complaint and settled within two weeks of submission of relevant documents.

NIGERIA: Amendments to Stamp Duty Act proposed

On 2 March 2017, the Stamp Duties Act (Amendment) Bill 2017 (the "Bill") passed the second reading in the House of Representatives. If passed into law, the Bill proposes to amend the Stamp Duty Act, 1939 ("SDA") as follows:

  • repealing the exemption from stamp duty previously granted to bills of exchange, promissory notes and deposit slips;
  • increasing the stamp duty on policies for insurance against accident from 60 kobo to NGN200;
  • requiring that electronic/paperless instruments and transactions be denoted with adhesive postage stamps or ink electronically generated online through the internet;
  • revising the definition of a stamp to mean a stamp impressed by means of a dye or ink electronically generated online through the Internet, embossed through a point of sale machine or an adhesive stamp with a face value or specified value;
  • increasing the threshold for charging duty on receipts from NGN4 to NGN1 000; and
  • increasing the penalties for offences committed under the SDA.

RWANDA: Requirements for VAT exemption order issued

The Minister of Finance and Economic Planning published Order No.001/17/10/TC of 30/01/2017, effective from 13 February 2017, in the Official Gazette, clarifying the following as eligibility requirements for an industry to claim an exemption from VAT on machinery, capital goods and raw materials:

  • being registered as a company in Rwanda;
  • processing raw materials to produce goods for sale or for mining and quarry exploitation;
  • restricting application to the items contained in the approved list issued by the relevant minister;
  • demonstrating the direct link between the goods for which exemption is sought and the industrial activity that would be carried out;
  • addressing the application to the Commissioner General of the Rwanda Revenue Authority in the prescribed form (for locally produced machinery, capital goods and raw materials); and
  • submitting a declaration form to the Commissioner for Customs in respect of imported machinery, capital goods and raw materials.

SEYCHELLES: Progressive income tax implementation postponed

On 14 February 2017, the President announced via a State of the Nation Address that, due to the complex implementation process, the comprehensive progressive income tax (initially scheduled for 1 July 2017) has been postponed to 1 January 2018.

SOUTH SUDAN: Taxation Amendment Act, 2016 enacted

On 15 February 2017, the Ministry of Finance and Economic Planning published the Taxation Amendment Act, 2016 which had been signed into law on 20 December 2016. Significant amendments, which became effective on 20 December 2016, include:

  • all exemptions from business profits tax granted under the Investment Promotion Act, 2009 and other non-tax legislation are null and void;
  • exemptions from personal income tax granted under the Emoluments, Entitlements and Privileges of Executive and Legislative Constitutional Post Holders Act, 2010 and other non-tax legislation are null and void;
  • revision of the lower band of personal taxable income;
  • amendment of the sales tax rate for domestically produced goods, imported goods, hotels, restaurants and bar services;
  • increasing the final withholding tax rate on rent from 10% to 20%;
  • introducing a final 20% withholding tax on contract payments by government institutions; and
  • introducing a final 10% withholding tax on payment of technical fees (technical, managerial and consultancy services performed in South Sudan) to non-residents on amounts exceeding SSP10 000.

UGANDA: Introduction of digital tax stamps proposed

On 28 February 2017, the Uganda Revenue Authority announced the planned imposition of digital tax stamps ("DTS") on excisable goods and other goods as may be gazetted by the Minister. DTS are physical paper stamps applied to goods or their packaging to ensure a seamless monitoring and compliance process.

The use of DTS is aimed at:

  • simplifying the process of obtaining VAT refunds;
  • fast-tracking the customs clearing process;
  • generating data automatically for the submission of tax returns; and
  • addressing tax evasion and smuggling on cross-border transactions.

Sources include IBFD's Tax Research Platform; http://www.allafrica.com; http://tax-news.com

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 Mondaq.com.

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

Authors
 
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”

Up-coming Events Search
Tools
Print
Font Size:
Translation
Channels
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
Password
Confirm Password
Position
Mondaq Topics -- Select your Interests
 Accounting
 Anti-trust
 Commercial
 Compliance
 Consumer
 Criminal
 Employment
 Energy
 Environment
 Family
 Finance
 Government
 Healthcare
 Immigration
 Insolvency
 Insurance
 International
 IP
 Law Performance
 Law Practice
 Litigation
 Media & IT
 Privacy
 Real Estate
 Strategy
 Tax
 Technology
 Transport
 Wealth Mgt
Regions
Africa
Asia
Asia Pacific
Australasia
Canada
Caribbean
Europe
European Union
Latin America
Middle East
U.K.
United States
Worldwide Updates
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement

Mondaq.com (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 www.mondaq.com

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 Mondaq.com’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.

Disclaimer

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.

Registration

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 unsubscribe@mondaq.com 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.

Cookies

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.

Links

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.

Mail-A-Friend

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.

Security

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 webmaster@mondaq.com.

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 EditorialAdvisor@mondaq.com.

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 enquiries@mondaq.com.

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