Africa Tax In Brief

ANGOLA: Implementation of mandatory e-invoicing postponed

The General Tax Administration (“GTA”) has announced that, due to technical challenges, implementation of the mandatory electronic invoicing (e-invoicing) requirement – originally scheduled for September 2025 – has been postponed to 1 January 2026.

Between 1 October and 31 December 2025, while AGT proceeds with the certification of e-invoicing software, taxpayers would be allowed to continue issuing traditional invoices without incurring penalties.

With effect from 1 January 2026, e-invoicing will be mandatory for large taxpayers, government suppliers and transactions exceeding AOA25-million. By September 2026 the e-invoicing regime, which is governed by Presidential Decree No. 71/25, will be extended to all VAT-registered taxpayers.

CAMEROON: Circular on amicable procedure under tax treaties

On 22 October 2025, the Ministry of Finance of Cameroon has published a circular clarifying the practical application of the mutual agreement procedure (MAP) provided under Cameroon's tax treaties. The circular outlines the administrative process and responsible authorities for handling requests submitted by taxpayers seeking to resolve cases of double taxation through mutual agreement with treaty partners.

GHANA: 25% tax on gains from sale of assets and liabilities enforced

On 3 October 2025, the Ghana Revenue Authority (“GRA”) has issued a public notice reaffirming that gains derived from the realisation of assets (including land and buildings (other than primary residences), shares or securities, business assets such as goodwill, and other investment assets) and liabilities are subject to tax at the standard rate of 25%.

Individuals may either pay the flat rate of 25% on the gain or elect to add the gain to their annual income to be taxed at the normal graduated income tax rate. Non-residents who dispose of investment assets are required to pay a final tax of 25% on the gross consideration.

A person deriving a gain on the realisation of an asset or liability is required to file a return with the Commissioner General of the GRA within 30 days of the transaction for assessment of the tax on the gains from the realisation.

KENYA: VAT exemption on disposal of salvage vehicles by insurers confirmed by High Court

On 23 October 2025, the High Court at Nairobi has confirmed in the appeal case of Commissioner of Domestic Taxes v. ICEA Lion General Insurance Company Limited (“ICEA”) (Income Tax Appeal E105 of 2023) ([2025] KEHC 14865 (KLR) that the disposal of salvage motor vehicles by insurance companies forms part of exempt insurance services under the Value Added Tax (“VAT”) Act, 2013.

In the case at hand, ICEA is a company licensed to conduct insurance business in Kenya, and focuses on products, services and activities related to general insurance. It was subjected to a compliance review and audit by the Kenya Revenue Authority (“KRA”) for the years 2015 to 2018 and additional corporate income tax and VAT assessments were raised in respect of the proceeds from the disposal of salvage motor vehicles by the taxpayer.

Following alternative dispute resolution proceedings held at the Tax Appeals Tribunal (“TAT”), the corporate income tax assessment was settled and the TAT was faced with the sole issue of whether VAT is chargeable on the disposal of salvage motor vehicles by the taxpayer.

In its judgement of 19 May 2023, the TAT ruled in favour of the taxpayer on the basis that the disposal of salvages is an integral part of the insurance business and not a separate transaction flowing from the principles of indemnity and subrogation. Accordingly, the disposal of salvage motor vehicles qualifies for the VAT exemption for insurance services provided under the VAT Act. The KRA lodged an appeal to the High Court.

The Court noted and ruled that:

• The First Schedule to the VAT Act exempts "insurance and reinsurance services" without defining the term, while the Insurance Act defines "insurance business" broadly to include activities "incidental thereto";
• The sale of salvages and the insurance indemnity form a single, indivisible economic supply. Artificially separating them for VAT purposes would distort the true nature of the insurance transaction; and
• It was accepted that the acquisition of salvage vehicles is not a commercial transaction but a legal consequence of indemnity and subrogation. The subsequent sale merely mitigates the insurer's loss, reducing claim expenses rather than generating trading income. It is thus part of the composite insurance supply, not an independent taxable event.

Having agreed to the decision of the TAT, the Court dismissed the appeal and awarded costs to the taxpayer.

KENYA: Official market interest rate for calculating fringe benefit tax and deemed interest set for October to December 2025

Through a public notice dated 21 October 2025, the KRA has set the official market interest rate for calculating fringe benefit tax and deemed interest at 8% for the period of October to December 2025.

In addition, KRA has announced that a 15% withholding tax on the deemed interest is due and payable to the KRA within five working days following the month in which deemed interest is computed.

KENYA: E-invoicing compliance mandated for all tax compliance certificate applications

Through a public notice dated 24 October 2025, the KRA has formally made compliance with the electronic tax invoice management system (“eTIMS/TIMS”) a requirement for obtaining a tax compliance certificate (“TCC”) for all persons in business.

New compliance requirements for TCC applications include:

• Registering with the eTIMS/TIMS, particularly applicable to individuals and non-individual entities with business income;
• Promptly filing of all tax returns;
• Paying taxes within the stipulated due date;
• Settling all outstanding tax liabilities or application for an approved payment plan that allows the taxpayer to continue with the self-service TCC application process; and
• Complying with VAT obligations, including maintaining a valid VAT Special Table status where applicable.

The TCC application can be accessed through the iTax platform.

KENYA: Guidance issued on payroll application of income tax deductions, reliefs and exemptions

Through a public notice dated 2 October 2025, the KRA has issued guidance to employers on the application of all relevant tax deductions, reliefs and exemptions when computing income tax on employee emoluments.

Following the amendments introduced by the Finance Act, 2025, the guidance clarifies employers' obligations regarding the application of all statutory tax deductions, reliefs, and exemptions, requiring employers to:

• Apply personal relief to all resident employees;
• Allow insurance relief, mortgage interest deductions, and contributions to registered pension schemes and post-retirement medical funds, provided employees declare them and submit the necessary supporting documents within statutory limits;
• Deduct statutory levies and contributions paid by employees, such as contributions to the social health insurance fund and the affordable housing levy;
• Recognise and apply tax exemptions for employees holding valid tax exemption certificates, within the prescribed limits; and
• Ensure accurate and timely submission of PAYE returns, which must reflect the employee's applicable reliefs, deductions, and exemptions.

The KRA has also advised employees to provide their employers with all necessary documentation in a timely manner to facilitate the application of any applicable tax reliefs or deductions.

KENYA: Multilateral Instrument (“MLI”) - French synthesized text of the France-Kenya treaty published

On 3 October 2025, the French government published the French synthesized text of the France - Kenya Income Tax Treaty (2007), displaying the modifications made to the treaty by the MLI.

Unless stated otherwise in the synthesized text, the provisions of the MLI will generally have effect with respect to the treaty:

• With respect to taxes withheld at source on amounts paid or credited to non-residents, where the event giving rise to such taxes occurs on or after 1 January 2026; and
• With respect to all other taxes, for taxes levied with respect to taxable periods beginning on or after 1 November 2025.

KENYA: Draft rules for new digital services tax on non-resident providers published

Through a public notice dated 22 September 2025, Kenya has published the  Draft Income Tax (Significant Economic Presence (“SEP”) Tax) Regulations, 2025 to implement a new income tax on non-resident entities earning income from digital services provided to users in Kenya, replacing the previous digital service tax regime. The regulations is to revoke and replace the Income Tax (Digital Service Tax) Regulations 2020.

The Draft Regulations outline the scope, rate and compliance obligations for the new tax, which is set at 30% of deemed taxable profit and applies to a wide range of digital services delivered over the Internet or electronic networks. Key highlights of the Regulations include:

• Definition of a "digital asset" to mean any item of value that exists in a digital form and is owned or controlled electronically, which can be used, transferred or traded;
• Definition of a "service" to mean a digital service or any service that is delivered or subscribed over the Internet or an electronic network, including through a digital marketplace;
• Specifying that SEP tax is a final tax that applies to the income of a non-resident entity derived or accrued in Kenya from the provision of services through a business carried out over the internet or an electronic network, including through a digital marketplace;
• Computation of SEP tax, which is charged at a rate of 30% of the deemed taxable profit. The taxable profit is deemed to be 10% of the gross turnover from taxable services;
• Specifying that gross turnover is the payment received from the provision of a digital service or commission fees earned from the use of a digital platform. The gross turnover does not include VAT charged for the service;
• Clarifying that an entity is deemed to have SEP in Kenya if it provides digital services to users located in Kenya;
• List of digital services subject to the SEP tax, which include:
  • downloadable digital content, including downloadable mobile applications, eBooks and films;
  • subscription-based media including news magazines and journals;
  • streaming services, listening, viewing or playing online digital content on any audio visual or electronic media including television shows, films, music, games, podcasts, webcasts and similar content;
  • software programs including software, drivers, web site filters and firewalls;
  • electronic data management including cloud computing services;
  • search engines and automated help desk services;
  • artificial intelligence services;
  • ticketing services for events, theatres, restaurants and similar services;
  • online education programs including distance teaching programmes through prerecorded media, eLearning, education webcasts, webinars, online courses and training services tailor-made to suit the learner's programme;
  • services that link the supplier to the recipient, including platforms for transport hailing, online travel, rental and accommodation marketplaces and any other platforms that facilitate the provision of services, goods or property;
  • facilitation of any online payments including money transfer services and digital asset transactions; and
  • any other services carried out over the Internet or electronic networks, including a digital marketplace;
• Determining that a user of a digital service is considered to be located in Kenya if the user does any of the following:
  • accesses the digital services through telecommunication or electronic devices from a terminal in Kenya;
  • makes payments using a credit or debit facility provided by any financial institutions in Kenya;
  • acquires services using an Internet protocol address or mobile country code assigned to Kenya; and
  • has a business, residential or billing address in Kenya;
• Clarifying that exemption from the SEP tax shall apply to the following categories of persons:
  • non-resident persons offering services through a permanent establishment in Kenya;
  • income of non-resident persons arising from the business of transmitting messages by cable, radio, optical fibre, television broadcasting, very small aperture terminal (VSAT), the Internet, satellite or by any other similar method of communication that is chargeable; and
  • non-resident persons providing digital services to airlines in which the Kenyan government holds at least 45% shareholding;
• Requiring non-resident entities without a permanent establishment in Kenya that provide services to Kenyan users to apply for registration under a simplified tax registration framework;
• Clarifying that entities registered under the Income Tax (Digital Service Tax) Regulations 2020 shall be deemed registered under the Regulations;
• Obligating a non-resident entity without a permanent establishment in Kenya who elects not to register to appoint a tax representative; and
• Requiring a person liable to pay SEP tax or its appointed tax representative to submit a return in the prescribed form and remit the tax due on or before the 20th day of the month following the end of the month in which the service was offered.

MADAGASCAR: Convention and Protocol on Mutual Administrative Assistance in Tax Matters enters into force

On 1 November 2025, the Multilateral Convention on Mutual Administrative Assistance in Tax Matters, as amended by the 2010 protocol, entered into force in respect of Madagascar. The Convention and the amending protocol will generally apply from 1 January 2026 for Madagascar.

MAURITIUS: Guidance on Qualified Domestic Top-up Tax (“QDMTT”) issued

Through a public notice, the Mauritius Revenue Authority (“MRA”) has issued guidance on the QDMTT, wjhich is applicable for the year of assessment commencing on 1 July 2025 and every subsequent year of assessment.

The QDMTT applies to a Mauritius resident company forming part of an in-scope multinational enterprise (“MNE”) group with a fiscal year ending on or after 1 January 2025.

The resident company is required to notify the MRA, not later than six months from the end of the MNE group's fiscal year, of the identification of the designated person resident in Mauritius and responsible to file the QDMTT return and pay the tax due. The deadline for notifications which are already due have been extended to 30 November 2025.

NAMIBIA: 2025/2026 Mid-year budget statement tabled in parliament

On 21 October 2025, the Minister of Finance tabled the mid-year budget statement in parliament and announced key policy adjustments for the 2025/2026 fiscal year. The Income Tax Amendment Bill, 2025 has been presented for legislative consideration and is anticipated to be passed into law before the end of this financial year. Significant proposed amendments include:

• Reducing the non-mining corporate income tax rate to 28% in 2026/2027;
• Introducing a 20% corporate income tax rate for Special Economic Zone enterprises and non-mining small and medium-sized enterprises;
• Introducing a final withholding tax of 10% on the distribution of local dividends to natural persons or the estate of a deceased person;
• Distinguishing between equity and debt instruments to classify dividend income from preference shares as taxable income;
• Transforming the long-term insurers tax regime to a system more appropriate for companies owned by shareholders in a normal business structure, as opposed to mutual companies owned by policy holders;
• Allowing a tax deduction of costs incurred and cash paid to rehabilitation funds by mining companies during cash-generative years; and
• Introducing a ceiling of N$400 000 on the annual housing benefit that is available to employees and subjected to an one-third exemption.

NIGERIA: Automatic tax debits under new tax laws clarified

On 13 October 2025, the National Orientation Agency of Nigeria has issued a statement in its weekly bulletin, The Explainer (Volume 2, No. 23), to address public concerns arising from interpretations of the Nigerian Tax Act, 2025 and the Nigerian Tax Administration Act, 2025 (“NTAA”), which came into effect on 1 January 2026.

The statement clarifies that the Federal Government will not automatically deduct taxes from individual bank accounts. According to the Agency, section 29 of the NTAA only requires banks and other financial institutions to submit quarterly reports on customers whose cumulative monthly transactions exceed NGN25-million for individuals and NGN100-million for companies. This provision does not authorise automatic deductions but is intended to detect tax evasion.

SENEGAL: Country-by-country reporting requirements for 2023 and 2024 suspended

Through an undated official notice published on social media platforms on 18 September 2025, the Directorate General of Taxes and Domains (“DGID”) has announced the suspension of the obligation for multinational enterprises to file country-by-country reports (“CbCR”) for the 2023 and 2024 financial years.

CbCR was introduced by Law No. 2018-10 dated 30 March 2018, and the requirements became applicable as of 1 January 2018. The DGID clarified that, although the CbCR obligation remains in force under Article 31 ter of the General Tax Code, filing requirements for companies meeting the above conditions are suspended for the two years concerned.

TOGO: Digital platform for customs tax exemptions and waivers launched

On 30 September 2025, the Togolese Revenue Office (Office Togolais des Recettes, OTR) has officially launched "Gest-Exo", a new digital platform designed to streamline, centralise and automate the submission and processing of customs exemption and waiver requests. Through the platform, taxpayers can now submit and track their exemption or waiver applications online in real time, enhancing transparency and efficiency in customs administration.

The use of the Gest-Exo will become mandatory from 1 January 2026 and a three-month transition period will apply from 1 October 2025 to 31 December 2025 during which businesses may continue to submit requests under the previous procedures.

ZAMBIA: 10% excise duty on gaming and betting services enforced

Following the enactment of the 2025 Supplementary Budget, on 15 October 2025, the Zambia Revenue Authority (“ZRA”) has announced the implementation of 10% excise duty on gaming and betting activities. This development also follows the recent Constitutional Court dismissal of an application by betting operators seeking to restrain the implementation of the 10% excise duty.

The ZRA has advised that:

• 10% excise duty will be collected on the total amount staked from gaming and betting services;
• Gaming and betting companies must compute, account for and remit the excise duty to the ZRA with effect from the transaction period beginning September 2025;
• The 10% excise duty must be remitted by the 15th day of the month following the month in which the transactions occurred; and
• Payments must made under the lumpsum payment option using the respective Withholding Tax Accounts.

ZAMBIA: 2026 Budget Address presented in the National Assembly

On 26 September 2025, the Minister of Finance and National Planning has presented the 2026 Budget Address in the National Assembly. Significant proposed amendments, which are to take effect on 1 January 2026, include:

Direct taxation

• Removing the 10-year (for the mining and electricity generation sectors) and five-year (for all other sectors) carry-forward limitation periods of disallowed interest;
• Introducing income tax concessions for railway sub-sector public-private partnerships for the rehabilitation, renovation, operation, maintenance, management and financing of the TAZARA special purpose vehicle (SPV);
• Increasing the allowable income tax deduction for companies that employ persons with disabilities from ZMW2 000 to ZMW2 500 per employee per annum;
• Excluding public service vehicles with seating capacity of 50 and above from presumptive tax in favour of subjecting the income earned to turnover tax or corporate income tax. The corporate income tax regime applies if the annual turnover is above ZMW5-million, and the turnover tax applies where the annual turnover is ZMW5-million or less; and
• Increasing the turnover tax and rental income tax exemption threshold from ZMW1 000 to ZMW2 500 per month to provide relief to small businesses and low-income earners;
• Increasing the turnover threshold for artisanal and small-scale mining from ZMW800 000 to ZMW5-million to align with the standard turnover tax threshold;
• Extending the 2% local content allowance to income earned from value addition to milk, raw hides and skins; and
• Extending the charging of advance income tax (“AIT”) on foreign remittances above USD2 000 to other financial institutions and platforms. Currently, any person sending funds exceeding USD2 000 outside Zambia through the bank is required to avail a valid tax clearance certificate. Failure to provide a valid certificate attracts a 15% withholding tax. This, however, does not apply when sending money through non-banking platforms. This measure is intended to extend the requirement of AIT on remittances to other financial institutions and remittance platforms.

Indirect taxation

• Zero-rating for VAT purposes supplies to government projects funded through loans. Currently, supplies made to donor-funded government projects are zero-rated for VAT purposes while supplies to loan-funded government projects are subject to the standard rate;
• Increasing the “intending trader” period for VAT purposes f from seven years to 10 years or hydro-electricity generation; and
• Zero-rating the supply of mains (piped) water, which is currently VAT exempt, to enable water utility companies to claim input VAT.

Tax administration

• Reducing the penalty for late turnover tax payment from 5% to 0.5% per month or part thereof to encourage voluntary compliance.

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.