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Africa tax updates at a glance

South Africa

Multinationals are continuing to seek out favourable jursidictions for investment purposes, and many eyes are trained on Africa. Taxand South Africa summarises the key tax updates throughout the continent.

Country

Topic

 
Ghana

National Fiscal Stabilisation Levy due

The National Fiscal Stabilisation Levy (NFSL) Act 2013 (Act 862) which was gazetted on 15 July 2013, requires certain entities to pay 5% of their profit before tax as a NFSL levy on a quarterly basis.

The first payment of NFSL became due by 30 September 2013.

Ghana

Potential waiver for handset import tax

In terms of the Customs and Excise (Duties and Other Taxes) Amendment Act, gazetted in September 2013, a 20% import duty is to be levied on telephone sales, including mobile, cellular and satellite phones.

Following widespread criticism from dealers and manufacturers of handsets, the Minister of Communications has recently indicated that the Ministry would be ready to discuss the potential waiving of such import duty based on viable proposals from handset dealers and manufacturers.

Namibia

Compliance notice to taxpayers

In a press release published by the Ministry of Finance on 20 September 2013, taxpayers not in good standing with the Receiver of Revenue are warned to settle their tax accounts within a period of one month.

Failure to comply with this notice may result in the seizure of goods, recovery of tax from third parties, civil judgment and recovery of outstanding taxes and the appointment of an agent to recover taxes due.

A similar notice was issued in April 2013 and an estimated 3,000 taxpayers that did not settle their tax accounts had their import VAT accounts suspended. Consequently, VAT payable in imports could not be suspended and became payable at the point of entry before goods were released into the country.

Tanzania

Business licence requirements

In a General Public Notice of July 2013 the Ministry of Trade and Industry announced that all business licences in Tanzania have to be renewed prior to 31 December 2013 in terms of the Business Licensing Act No 25 of 1972.

Businesses not complying with these provisions will be liable for penalties and interest from January 2014. 

The annual business licence fee introduced in 2011 was not implemented previously due to a lack of efficient collection procedures. Going forward the business licences must be renewed on an annual basis.

Discover more: The latest African tax updates in brief

Also repurposed in Thomson Reuters’ Taxnet Pro, 24 October 2013


Your Taxand contact for further queries is:
Bernard Du Plessis
T. +27 11 269 7891
E. bduplessis@ens.co.za

Taxand's Take

Multinationals who operate within these African countries should research all legislation, including relevant tax updates, in order to keep afresh of all developments. With more and more companies looking to expand into the continent, the need for increased regulation becomes greater, therefore legislation will continue to be updated.

Taxand's Take Author

Bernard Du Plessis
Taxand Board member
South Africa
Sub-Saharan Africa