10 Aug The African world of tax
The recent changes and amendments in the taxation area of African countries:
The Ghana parliament has abolished the customs duty on spare parts of two wheelers and has introduced an import levy of 0.2% on all imports coming on from countries who are not the members of the African Union (AU). The government has also issued a guideline on the payment and record keeping method of VAT.
The Finance Act has been concurred as a law by the parliament on June21st,2017 and imposed new rules regarding capital expenditure, investment deduction, reduced corporate income tax amnesty and tax representation.
The Parliament has been presented the budget and there is a revision of excise duty in the case of cigarettes which are imported or locally produced. The budget has been presented with the revision in the tax increment in channel subscription, fresh milk exemption and exemption in the import of buses and minibuses.
There have been certain changes made in the exemption of VAT in regard to mining and drilling of any gas or oil sectors. Any ancillary services like artistry,scientific, educational and transport services granted within the country.
The government has declared a scheme for voluntary declaration of assets and income with a nine-month window for the declaration. The budget has been made into law by the Nigerian Parliament and there is also a declaration of reduced export and import documents with effect from July21st, 2017.
The budget has been presented to the parliament with a reduction of customs duties for cashless economies and increase in import duties.
An information exchange treaty has been implemented between Seychelles and Gurnsey and it applies from 14th June 2017.
The budget was presented with the tax measures like royalty tax, payroll tax rate and limitation on carrying tax losses.
The budget has been presented by clarifying contradictory provisions, revision in wear and tear, the introduction of withholding tax and VAT for ancillary services.
The budget has proposed the following tax measures:
- Reintroduction of 15% withholding tax,
- Decrease of 5% in gaming tax,
- The scope of anti avoidance has been expanded,
- The minister has been granted power to estimate rental income in case of a false information,
- The In duplum rule to introduced which limits interest accrued on unpaid tax.