Africa Tax In Brief – January 2017

ANGOLA: Budget Bill, 2017 approved and adopted by National Assembly

On 17 November 2016, the National Assembly approved the Budget Bill, 2017. The final version of Budget Law, 2017 was adopted by the National Assembly on 14 December 2016.

BURKINA FASO: Finance Law, 2017 adopted by National Assembly

On 22 December 2016, the National Assembly adopted the Finance Law, 2017, which introduces tax changes to the current applicable law.

BURUNDI: Budget Bill, 2017 approved by Council of Ministers

On 16 November 2016, the Council of Ministers approved the Budget Bill, 2017, which was adopted by the National Assembly on 22 December 2016. According to official announcements, the Budget Law will introduce, inter alia, increased tax rates on the following:

corporate and individual income, including capital gains; mobile phone calls, which are subject to the tax on national calls at the rate of BIF52 per minute (previously, BIF42 per minute). However, telephone calls are no longer subject to value-added tax ("VAT") and general consumption tax; transport and vehicles are subject to the tax on fuel consumption, which replaces both the flat-rate tax on transport and the tax on vehicles. The tax on fuel consumption applies at the rate of BIF100 per litre; and sugar, which is subject to general consumption tax at the rate of BIF800 per kilogram (previously, BIF600 per kilogram). Further details will be reported upon the Budget Law's official publication.

CAMEROON: Budget Law, 2017 adopted by Parliament

On 3 December 2016, Parliament approved the Budget Bill for 2017. The Budget Bill is submitted to the Senate for a second reading and ratification, without any major amendments. Details of the budget will be reported as they become available.

GHANA: 2016 Tax regulations published

On 7 November 2016, the Ministry of Finance published regulations on income tax, VAT and excise duty. The regulations were gazetted on 4 July 2016 and entered into force on 3 August 2016.

GHANA: Online pension portal launched

On 20 December 2016, the Social Security and National Insurance Trust launched an online pension (ePension) portal aimed at offering improved service in pension collection through an e-governance platform. The portal provides online facilities for registration, pension management, pension return filing and pension payments.

GHANA: Guidelines issued for exemption of withholding taxes on specified supplies

On 29 December 2016, the Ghana Revenue Authority issued guidelines for granting exemption from withholding taxes (the "guidelines") under section 116(5C) of the Income Tax Act, 2015.

The guidelines, applicable to persons making payments for the supply of goods, works and services, set out various requirements to be met in order to entitle such persons to exemption from the obligation to withhold and remit tax on those payments.

Upon showing good cause and having a satisfactory tax record, the Commissioner-General may issue exemptions in writing if the applicant has:

registered for all relevant taxes, unless exempted by law. Also, the applicant's shareholders, directors and employees must have tax identification numbers; kept and maintained adequate and reliable business records in the country; submitted notice of particulars of contracts entered into with non-residents within 30 days from the date of such entry. Non-compliance with this requirement disqualifies the taxpayer for at least 12 months; submitted all relevant tax returns by their due dates. This requirement applies to, among others, the applicant's directors and expatriate employees; in the case of a company, submitted its estimated chargeable income and taxes for the current year of assessment and/or has been provisionally assessed for the current year, where applicable; paid all taxes by their due date; been audited for a period within the last three years. However, if the audit uncovers non-compliance with any tax provisions, the taxpayer will be disqualified from grant or renewal of exemption for at least 12 months; submitted lists of particulars of all quarterly payments which would have, but for the exemption, been subject to withholding tax; and demonstrated that withholding tax on such payments would lead to cash flow problems or payment of taxes with part of working capital. In addition to the instances of disqualification stated within the items above, if the applicant:

issues a dishonoured cheque, he/she will be disqualified for the next two years; has defaulted on payment term arrangements, he/she will be disqualified for at least 12 months; or fails to include third-party information on transactions undertaken by the taxpayer in his business records and/or financial statements, he/she will be disqualified for at least 12 months. All applications should be submitted to the taxpayers' tax office, stating the projected turnover, chargeable income and tax for the current year.

GHANA: Trade Facilitation Agreement ratified

On 4 January 2017, Ghana submitted its instrument of acceptance to the World Trade Organization ("WTO") for ratification of the Trade Facilitation Agreement ("TFA").

The TFA contains provisions for expediting the movement, release and clearance of goods, including goods in transit. It also sets out measures for effective cooperation between customs and other appropriate authorities on trade facilitation and customs compliance issues. It further contains provisions for technical assistance and capacity building in...