SKP Global Expansion Updates - May 2017

We are pleased to present the April issue of SKP Global Updates - our newsletter that covers employment, payroll, Goods and Services Tax (GST)/Value Added Tax (VAT) and corporate tax related developments globally.

The key highlights of this issue includes the budget highlights of Quebec, Newfoundland and Labrador, exemption changes in foreign earned remuneration for South African residents, corporate tax rate changes in Australia, and proposed employment Law changes in Netherlands.

Africa

Gabon

Obligation of country-by-country report and transfer pricing regulations

Recently, the Republic of Gabon has introduced an obligation to file a Country-by-Country report (CbC report) and transfer pricing documents from 1 January 2017.

Parent and ultimate parent companies whose consolidated annual turnover (excluding tax) is greater than or equal to CFA 491,967,750,000 for the fiscal years beginning on or after 1 January 2017 are required to file a CbC report within 12 months after the end of the fiscal year. Non-compliance of the same can attract penalty equal to 0.5% of consolidated turnover excluding taxes, maximum to CFA Franc 100 million per fiscal year.

Ghana

Corporate tax incentives to stimulate Investment

Recently, the Ghana Investment Promotion Centre has announced a proposal to offer the following tax incentive to entities:

To reduce the corporate income tax rate from 25% to 20% by year end; and Tax holiday grant to companies that relocate their headquarters to Ghana, for a 10-year period. Ghana issues regulations on capital allowance claim

Recently, the Ghana Revenue Authority has issued regulations for the capital allowances claim. The key points of the regulations are summarised below:

Exemptions - In cases where depreciable assets are used for the production of exempt income/income under temporary concession, the capital allowances will be deductible for income tax purposes.

Ownership - At the end of the basis period, depreciable asset must be owned by the person making a claim for capital allowance.

Loss of asset - In cases where a depreciable asset is destroyed by a natural disaster, accident or theft, the asset would be considered to be realised for zero consideration and additional capital allowance may be granted. This will be subject to the proof of loss submitted. If the asset is insured, the compensation received will be reduced from the written-down value of the asset before capital allowance is granted for the particular asset.

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