Africa Tax In Brief - March 2016

ANGOLA: Budget Law 2016 published

Law No. 28/15 ("Budget Law 2016"), which had been adopted on 31 December 2015, was published on 30 January 2016 and applies with effect from 1 January 2016. The Budget Law 2016 provides for:

the introduction of a Special Contribution on Banking Operations, to be levied at the rate of 0.1% on all financial operations by banking and non-banking financial institutions governed by the Financial Institutions Framework Law (Law 12/15 of 27 June 2015). The payment of salaries and other personal payments do not qualify as banking operations; the maintaining in force of the Special Contribution on Current Invisible Operations, established by Presidential Decree no. 2/15 of 29 June 2015. The contribution continues to apply at a rate of 10% levied on transfers performed under management services and foreign technical assistance contracts. BOTSWANA: 2016/17 Budget and Income Tax (Amendment) Act 2015

Botswana's Minister of Finance, Mr O.K. Matambo presented the 2016/17 Budget Proposals to the National Assembly on 1 February 2016.

The Income Tax (Amendment) Act, 2015 which was gazetted on 30 October 2015, became effective on 1 February 2016. Amendments introduced by the Amendment Act include:

empowering the Commissioner General to (a) refund tax overpaid (without having to wait for vote allocation from the Ministry and (b) set-off any refund due against any tax, duty, levy, interest or penalty payable under any of the relevant laws that he is responsible for; the amendment of the term "farming operations" and an exemption for income from specified farming operations accruing to a resident individual, provided certain conditions are met; abolishing the carry-back of farming losses and the indefinite carry-forward of farming losses. With effect from 1 February 2016, farming assessed losses can only be carried forward for 5 years; repealing the provisions allowing set-off by individuals of farming losses against up to 50% of chargeable income from other sources; introduction of a 4% withholding tax in respect of the purchase of livestock for slaughter or for feeding for slaughter. BOTSWANA: Treaty with Ireland enters into force

The Botswana/Ireland Income Tax Treaty (2014) entered into force on 3 February 2016 and generally applies for Botswana from 4 March 2016 for withholding taxes and 1 July 2017 for other taxes, and for Ireland from 1 January 2017.

CHAD: Budget Law 2016 - details

Budget Law 2016 (Law No. 001/PR/2016), which introduces tax amendments to the General Tax Code, was enacted on 1 January 2016. Significant tax amendments include inter alia:

withholding tax: the introduction of an advanced payment of withholding tax on incoming foreign calls and telephone interconnections at a rate of 25% on payments to non-resident companies made by telecommunications companies; value added tax: the levying of VAT on all transactions carried on by telephone companies related to the sale and delivery of goods; transfer duty: the introduction of the following new rates for the transfer of immovable property: (1) 8% on undeveloped land; and (2) 10% on developed land. The Law also amends the land registry's values with effect from 1 January 2016, depending on the...

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