New Tax Regulations Promulgated
Following the enactment of the Finance Act, 2022 (the Finance Act), the Minister for Finance on 1 July 2022 issued three sets of Tax Regulations. These Regulations are the Tax Administration (General) (Amendment) Regulations, 2022 (the TAA Regulations); the Value Added Tax (Registration of Non-Resident Electronic Service Suppliers) Regulations, 2022 (the VAT Regulations); and the […]
Big tech and digital tax in Africa
The Covid-19 pandemic accelerated the use of technology across the African Continent as individuals and businesses switched to working, learning, shopping, and socialising online, along with the rest of the world. As a result, giant tech multinational corporations like Facebook (Meta), Google and Microsoft reportedly racked up huge profits during the pandemic. Yet these and other […]
New realities in Africa: Covid-19 and taxes
Ongoing economic pain wrought by the Covid-19 pandemic has put government revenue under a harsh spotlight. The likely direction to be taken by tax authorities in Africa in a post-pandemic era was discussed in a recent webinar co-hosted by LEX Africa and the South Africa-Nigeria Business Chamber. One disconcerting possibility raised was that revenue shortfalls […]
Finance Act 2021 – 60 second overview
Tanzanian Member FB Attorneys provides a quick executive snapshot of what the Finance Act 2021 amends: Companies Act Share warrants not to be issued All share warrants issued to be cancelled within 12 months Electronic and Postal Communications Act Introduces development levy on airtime Levy between TZS 5 to 222.70 Regulations on how to collect […]
Kaplan & Stratton wins multiple precedent setting tax cases
In this article we summarise these precedent setting decisions and highlight how each decision has brought clarity and confidence to Kenya’s business sector. VAT on Marketing Services Provided to Foreign Companies The Tax Appeals Tribunal considered whether marketing services were used or consumed outside Kenya and therefore zero rated for VAT. KRA in a decision […]
The bonfire of the tax treaties
Senegal and Zambia unilaterally scrapping tax treaties with Mauritius has shaken up the African investment and legal landscape. Senegal and Zambia have blamed “unbalanced” and “unfair” treaties for their surprise decisions to terminate double-taxation agreements with Mauritius. Tearing up a tax treaty is highly unusual in the circumspect world of international diplomacy and several other […]
Mauritius Tax Update
Following an order dated 13 April 2020 issued by the Government of India, Mauritius is henceforth once again regarded as an eligible country for the purpose of registration as Category I Foreign Portfolio Investor (“FPI”) under the SEBI (Foreign Portfolio Investors) Regulations, 2019 (“FPI Regulations”). The SEBI had previously issued a circular dated 7 April […]
Court of Appeal Rules on Legality of Grossing up in Tanzania
On 6 March 2020, the Court of Appeal of Tanzania (the Court) pronounced its decision in Civil Appeal No. 81 of 2019 by ruling that for purposes of calculating Pay As You Earn (PAYE), grossing up confers a taxable benefit to an employee and the same is prohibited under the laws of Tanzania. This is […]
Tax in African countries
The African Union is on a drive to make the continent economically self-sufficient and some observers believe fixing tax collection is a low-hanging fruit in this endeavour. Africa’s tax-to-GDP ratio is about 18%, while in the developed countries of the OECD it is 34%. In Nigeria, Africa’s largest economy, the number is just 5.9%. Many […]
Tax agreement between China and Republic of Congo
The People’s Republic of China (“China”), like other countries such as France, Italy, Mauritius, has signed a Tax Agreement with the Republic of Congo (“the Congo”) to prevent double taxation and tax evasion between the two states (“the Tax Convention”) , as of September 05, 2018, on the sidelines of the China – Africa Summit. In recent years, China has deployed […]
