IBFD country updates - Academy of Tax Law

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Botswana by Jude Amos(Reviewed up to 14 June 2019)Corporate TaxationCorporate Tax refers to the tax imposed by governments on the income or capital of corporations. Corporations, considered separate legal entities, are taxed on their profits, meaning the income generated from their operational activities, investments, and other financial undertakings. This tax is generally a key revenue source for governments, helping to fund public services, infrastructure, and other essential functions. The...General anti-avoidance rules amended.Transfer pricing rules introduced.Thin capitalization rule replaced by rule based on a percentage of EBITDA.Amendment to Transfer Duty Act proposed.

Cabo Verde by Leendert Verschoor, Catarina Nunes, Dúnia Moniz Delgado(Reviewed up to 1 April 2019)Corporate TaxationCorporate Tax refers to the tax imposed by governments on the income or capital of corporations. Corporations, considered separate legal entities, are taxed on their profits, meaning the income generated from their operational activities, investments, and other financial undertakings. This tax is generally a key revenue source for governments, helping to fund public services, infrastructure, and other essential functions. The...Corporate income tax rate reduced from 25{780f53c297e2c008074d23b865a0ce0b35a4f08852d8e1e49466a5a902c4e44e} to 22{780f53c297e2c008074d23b865a0ce0b35a4f08852d8e1e49466a5a902c4e44e}.Provisions on financial sector incentives amended.Special regime introduced for specified maritime activities.Certain exemptions from customs duty extended.

Congo (Rep.) by Cynthia Adoua(Reviewed up to 1 March 2019) Corporate TaxationCorporate Tax refers to the tax imposed by governments on the income or capital of corporations. Corporations, considered separate legal entities, are taxed on their profits, meaning the income generated from their operational activities, investments, and other financial undertakings. This tax is generally a key revenue source for governments, helping to fund public services, infrastructure, and other essential functions. The...Withholding tax on specified commissions increased from 5{780f53c297e2c008074d23b865a0ce0b35a4f08852d8e1e49466a5a902c4e44e} to 10{780f53c297e2c008074d23b865a0ce0b35a4f08852d8e1e49466a5a902c4e44e}.Strict conditions introduced in respect of incentive agreements.Tax returns to be filed using prescribed model.Minimum tax provisions revised.Provisions on taxable persons for VAT purposes revised.Various miscellaneous non-codified taxes introduced.Individual TaxationLump-sum taxation regime revised.Tax returns to be filed using prescribed model.

Equatorial Guinea by Vanessa Arruda Ferreira(Reviewed up to 1 May 2019)Corporate TaxationCorporate Tax refers to the tax imposed by governments on the income or capital of corporations. Corporations, considered separate legal entities, are taxed on their profits, meaning the income generated from their operational activities, investments, and other financial undertakings. This tax is generally a key revenue source for governments, helping to fund public services, infrastructure, and other essential functions. The...Local participation requirements relaxed.Tax on ownership of motor vehicles, etc.

Eswatini (formerly Swaziland) by Obiageli Chiedu(Reviewed up to 1 May 2019)Business and InvestmentAgreement establishing the African Continental Free Trade Area ratified by Eswatini

Lesotho by Tebello Thabane, Paul Khanare(Reviewed up to 1 May 2019)Corporate TaxationCorporate Tax refers to the tax imposed by governments on the income or capital of corporations. Corporations, considered separate legal entities, are taxed on their profits, meaning the income generated from their operational activities, investments, and other financial undertakings. This tax is generally a key revenue source for governments, helping to fund public services, infrastructure, and other essential functions. The...VAT reduced rates and zero-rated supplies list revised.Individual TaxationPersonal credit increased.Business and InvestmentCultivation and export of medical cannabis legalized Licensing requirements and fees established for medical cannabis

Liberia by Theophilus Dekonty Joseph(Reviewed up to 30 April 2019)Corporate TaxationCorporate Tax refers to the tax imposed by governments on the income or capital of corporations. Corporations, considered separate legal entities, are taxed on their profits, meaning the income generated from their operational activities, investments, and other financial undertakings. This tax is generally a key revenue source for governments, helping to fund public services, infrastructure, and other essential functions. The...Goods and services tax on specified travel services reduced.Concessionaires not to pay annual surface rent on encumbered land.Social security contribution rates increased.Amnesty announced in respect of real estate taxes.Amnesty announced in respect of customs duties.Individual TaxationSocial security contribution rates increased.

Mozambique by Malaika Ribeiro(Reviewed up to 1 April 2019)Individual TaxationSelf-assessment deadlines revised.

Zimbabwe by Joyce Chigome, Kennedy Munyandi(Reviewed up to 30 April 2019) Corporate TaxationCorporate Tax refers to the tax imposed by governments on the income or capital of corporations. Corporations, considered separate legal entities, are taxed on their profits, meaning the income generated from their operational activities, investments, and other financial undertakings. This tax is generally a key revenue source for governments, helping to fund public services, infrastructure, and other essential functions. The...Amendments to deemed source provisions.Changes to the incentives for mining companies.Update on advance rulings.Update of the general anti-avoidance provisions.Update of the transfer pricing provisions.Imposition of the intermediated money transfer tax.Individual TaxationAmendments to the income tax rates.Amendments to the source rules.Business and InvestmentAgreement establishing the African Continental Free Trade Area ratified.

Country Analyses

Nigeria by Osita Aguolu(Reviewed up to 1 April 2019)Corporate TaxationCorporate Tax refers to the tax imposed by governments on the income or capital of corporations. Corporations, considered separate legal entities, are taxed on their profits, meaning the income generated from their operational activities, investments, and other financial undertakings. This tax is generally a key revenue source for governments, helping to fund public services, infrastructure, and other essential functions. The...Completely new chapter.Individual TaxationCompletely new chapter.

*For clarity, the term Double Tax TreatyA Double Taxation AgreementA Double Taxation Agreement (DTA), also known as a Double Taxation Treaty (or a Tax Treaty), is an international tax treaty between two or more countries that aims to prevent individuals or businesses from being taxed twice on the same income. With globalisation and the increase in cross-border economic activities, DTAs have become essential tools for promoting trade, investment, and... (DTAA Double Taxation Agreement (DTA), also known as a Double Taxation Treaty (or a Tax Treaty), is an international tax treaty between two or more countries that aims to prevent individuals or businesses from being taxed twice on the same income. With globalisation and the increase in cross-border economic activities, DTAs have become essential tools for promoting trade, investment, and...), also known as a Double TaxationDouble Taxation occurs when the same income or financial transaction is taxed twice, typically in different jurisdictions. It can arise in two primary contexts: economic double taxation, where the same income is taxed twice in the hands of different taxpayers, and juridical double taxation, where the same taxpayer is taxed on the same income in more than one country. Double... Treaty (or a Tax TreatyA Double Taxation Agreement (DTA), also known as a Double Taxation Treaty (or a Tax Treaty), is an international tax treaty between two or more countries that aims to prevent individuals or businesses from being taxed twice on the same income. With globalisation and the increase in cross-border economic activities, DTAs have become essential tools for promoting trade, investment, and...), is an international

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