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Africa update: recent amends to tax legislation

South Africa

There have been various tax updates to legislation throughout African countries in recent months. Taxand South Africa highlights a selection of the key measures introduced. 

Ghana: 2014 Budget

Finance and Economic Planning Minister Seth Terkper presented the Government's 2014 Budget and Financial Statement to Parliament on 19 November 2013. Terkper pledged to narrow the budget gap by curbing wages and boosting revenue to reassure investors. Fiscal policy will focus on improving revenue mobilisation through tax effectiveness and efficiency - an effort being led by the Ghana Revenue Authority (GRA) under its on-going Revenue Modernisation Programme.

Kenya: Finance Bill 2013 enacted

Kenya’s Finance Bill 2013 was enacted into the Finance Act 2013 on 24 October 2013, following the assent by the President.  Key changes introduced by the Finance Act include:

The 10% withholding tax on the sale of property of shares in respect of oil, mining or mineral prospective companies introduced as a final tax with effect from 9 January 2013 is amended to a non-final tax for resident oil companies formed pursuant to assignment of rights
With effect from 1 July 2013, a Railway Development Levy at 1.5% of the customs value is applicable on all goods imported into the country for home use
It has been clarified that, with effect from 18 June 2013, the 10% excise duty applicable to fees charged by financial institutions is applicable on any fee charged by a financial services institution, irrespective of the nature of the services rendered

Mozambique: Employees exempt from submitting income tax returns

With effect from January 2014, Mozambique tax residents earning employment income only will no longer be required to submit annual income tax returns. The tax withheld from such income through the employees’ tax system will be considered to be the individuals’ final tax liability and no adjustments will be allowed through the submission of an annual tax return.

Nigeria:  FIRS establishes a transfer pricing division

Nigeria’s Federal Inland Revenue Service (FIRS) has established a dedicated transfer pricing division in Lagos, which will be responsible for the implementation and administration of the Income Tax Transfer Pricing Regulations (the Regulations) published in August 2012 and applicable to accounting years commencing after 2 August 2012.

The FIRS has also published the transfer pricing Disclosure Form and an updated version of the transfer pricing Declaration Form referred to in the Regulations.

Discover more: Africa update - recent amends to tax legislation 

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Bernard Du Plessis
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Celia Becker


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Taxand's Take

Multinationals with operations in any of these jurisdictions should further investigate all recent updates to relevant tax legislation in order to remain compliant. 

Taxand's Take Author

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