Zimbabwe: Zimbabwe tax measures for 2024- Domestic resource mobilization through tax

Discover Zimbabwe's promising investment landscape, fueled by vast natural resources, strategic positioning in Southern Africa, and ongoing reforms. With opportunities across mining, agriculture, and tourism, the country offers significant growth potential.

Explore Togo's evolving exchange control regime, shaped by UEMOA regulations and recent reforms. Learn about its legal framework, current trends, and the opportunities for businesses in a dynamic financial landscape.

In 2024 South Africa was the largest economy in Africa with a GDP of over USD 400 billion. It furthermore has the most diversified and industrialized economy in Africa.

Positioned along the Atlantic coastline of West Africa, Sierra Leone is a nation rich in heritage, culture, and natural wealth. With a population exceeding 8 million and a GDP of around $4 billion, Sierra Leone presents a distinctive investment opportunity.

Senegal, in 2024, is a leading African investment hub, fueled by growth in energy, infrastructure, and agriculture. With political stability, modern infrastructure, and investor-friendly reforms, it provides access to ECOWAS and AFCFTA markets, offering tax incentives for sustainable investments.

Nigeria, Africa’s largest economy, offers vast investment opportunities with a population of over 200 million. Rich in natural resources, including oil and gas, the country is diversifying into agriculture, technology, and manufacturing, making it an attractive destination for investors.

Discover Liberia's untapped investment potential in sectors like natural resources, agribusiness, infrastructure, tourism, and fintech, highlighting its strategic location, government incentives, and growing market opportunities.

In this article, explore Kenya's growing economy, its favorable business environment, and the regulatory framework governing foreign exchange, highlighting key opportunities for investors in various sectors.

Ghana, with a population of about 33 million located in West Africa provides an opportunity to investors with a wealth of natural resources such as cocoa, gold, oil, timber, and gas. Ghana is known for its political stability, providing a secure environment for business operations.

Ivory Coast is a top investment hub in Francophone West Africa, offering stability, rich resources, and business-friendly reforms. Explore its exchange control regulations and financial trends.

Recent tax developments on the continent.

In this article, we explore Benin's exchange control regime, covering key laws, regulatory priorities, intercompany transactions, enforcement agencies, sanctions, and trends, including the evolving stance on cryptocurrencies.

The ratification of the SA/Kuwait protocol represents a pivotal development in the tax relationship between the two countries. The changes introduced by the protocol, particularly those related to dividends, have far-reaching implications for Kuwaiti, Dutch and Swedish investors in SA companies.

Adopted in line with the forecasts set out in the Initial Finance Act (PLFI), the Finance Act for 2025 introduces several major tax reforms aimed at modernizing tax administration and enhancing transparency.

Effective January 2025, Nigeria's FIRS issued Guidelines for Advance Pricing Agreements (APAs) to enhance transparency and manage transfer pricing disputes, ensuring compliance with the Arm’s Length principle.

In the recent case, the Supreme Court of Mauritius ruled in favor of Alteo Energy Ltd, overturning the ARC's decision on tax exemption for interest income, emphasizing strict interpretation of tax laws. 

Kenya's Significant Economic Presence Tax (SEPT) replaces the Digital Service Tax (DST) to better capture revenue from non-resident digital service providers, aiming to boost tax revenue but posing compliance challenges.

Following Julie Essiam's resignation, Ghana's President appointed Anthony Sarpong as the new Commissioner-General of the GRA. Major tax reforms in the 2025 Budget aim to ease economic pressure, including the abolition of several taxes and VAT reforms.

The Tax Flash – Budget Edition from WTS Renmere provides an overview of tax and exchange control proposals announced in the 2025 Budget Speech of the National Treasury (RSA).

Recent tax developments from nine countries on the continent.

The business climate in Togo has experienced significant upheaval in recent months, particularly in terms of tax and customs regulations. These changes, primarily affecting international transactions, warrant the attention of large multinational groups due to the disruptions they are causing.

The South African Revenue Service will soon replace PN31 with section 11G of the ITA, governing deductions for expenses incurred in producing interest income. This will apply to years of assessment starting after 1 January 2025.

Senegal is modernizing its VAT framework for digital services, aligning with global standards. This article outlines the key features of the VAT regime on digital services.

In this article we highlight crucial changes that would arise from the Nigerian tax reforms, including CIT, VAT, and PIT. 

In Mauritius, Limited Partnerships are tax-transparent, with partners taxed on their income share. New laws introduce a 2% Corporate Climate Responsibility Levy on chargeable income, with certain exemptions.

Corporate governance is key to organizational success, driving trust, transparency, and sustainability. In Kenya, frameworks like Mwongozo guide businesses, enhancing performance and aligning with global trends like ESG.

The Ghana Revenue Authority has launched the second phase of its Electronic VAT Invoicing System, onboarding 2,000 VAT-registered businesses. Additionally, Ghana is negotiating income tax treaties with several countries.

The Egyptian Tax Authority (ETA) has issued guidelines for applying transfer pricing rules under Income Tax Law No. 91 of 2005, ensuring fair taxation of transactions between associated enterprises in Egypt and abroad.

Côte d'Ivoire’s 2025 Tax Appendix focuses on boosting revenue, supporting businesses, and tackling climate change. Key reforms aim to strengthen state resources and ensure inclusive, sustainable economic growth.

Recent tax developments from nine countries on the continent.

In 2024, South Africa proposed amendments to Section 7C of the Income Tax Act to curb tax avoidance through interest-free or low-interest loans to trusts, targeting cross-border transactions and clarifying the interaction with transfer pricing provisions, starting January 2025.

The Initial Finance Act (LFI) for 2024 implemented substantial modifications to the Senegalese General Tax Code (GTC) aimed at modernizing and harmonizing the tax framework.

In August 2024, Nigeria introduced guidelines for implementing a zero-duty rate on basic food items from July to December 2024, aiming to reduce food prices. Additionally, a proposed windfall tax of 50-70% on Nigerian banks' FX profits aims to fund infrastructure, education, and healthcare.

The Finance Act 2024, published on 27 July 2024, has introduced the imposition of the CCR Levy, which is intended to support national efforts aimed at protecting, managing, investing in, and restoring Mauritius’ natural ecosystem, as well as addressing the impacts of climate change.

On 1 July 2024, the EU-Kenya Economic Partnership Agreement (EPA) entered into force culminating negotiations towards an EU-Kenya Strategic Partnership.

Since 2021, Guinea's tax system has undergone major changes, including the ratification of tax exemptions by the National Assembly, expansion of flat-rate levies, and new tax code provisions, including payroll tax adjustments, corporate tax modifications, and expanded transfer pricing regulations.

Recent tax developments in Ghana include a two-month amnesty for uncustomed vehicles (Aug-Sept 2024), the implementation of VAT on Additional Oil Entitlement (AOE) for upstream contractors, and expanded tax incentives for the extractive sector and electric vehicle manufacturers.

Cote d’Ivoire facing International Challenges related to the Changes Introduced by the Multilateral Instrument to Prevent Base Erosion and Profit Shifting (BEPS).

Recent tax developments from eight countries on the continent.

One of the key issues that foreign investors in South Africa (ZA) need to consider is whether their activities in South Africa will create a Permanent Establishment (PE) and expose them to a corporate income tax liability in South Africa.

Senegal has adopted the new Environmental Code in 2023, which replaces the 2001 version, to address challenges arising from increased production activities, demographic pressures, and natural resource extraction.

As we noted in our 2024 Tax Outlook, the Nigerian Tax system is currently undergoing significant reviews with the aim of improving the system. In this article, we identify some of the notable proposals and updates in the tax reform process.

The Supreme Court recently provided an interesting interpretation of the application of the remittance rule, as well as the tax residency rule, in a judgment delivered in the now commonly called “Dilloo Case”.

The Kenya Revenue Authority (KRA) aimed to expand the definition of "royalty" in the Finance Bill, 2024, to include software payments, but the bill was rejected after protests. Despite this, KRA's proposal follows a High Court case and reflects ongoing debates over software taxation in Kenya.

The Ghana Revenue Authority has started rolling out Electronic VAT Invoicing System that will help businesses and GRA to obtain real time monitoring of VAT transactions.

The GloBE Model Rules were released by the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS) in December 2021. This article further examines the importance of efficient implementation, to ensure these guideliens achieve the desired economic result. 

Zimbabwe has embarked on a significant reform of its fiscal policies concerning the mining sector, introducing amendments to the Finance Act effective January 1, 2024.

Zambia's journey towards a more efficient, inclusive, and digitally advanced tax system is marked by significant legislative changes and policy introductions.

Interest expenditure incurred by a South African resident taxpayer may only be deducted in terms of section 24J(2) of the Income Tax Act, No. 58 of 1962 (‘ITA’)

In African economies, extractive industries are key, heavily regulated by authorities to maximize tax revenue, underscoring the importance of a clear "Permanent Establishment" (PE) concept, particularly in Senegal's expanding sector.

As times are changing, so is the Nigerian tax landscape. In this article, we highlight some of the recent tax updates in Nigeria in the first quarter of 2024.

Mauritius lacks transfer specific transfer pricing legislation, but the Income Tax Act 1995's Section 75 applies the arm’s length principle to assess related party transaction terms.

Recent tax determinations taken by the Tax Appeals Tribunal (TAT/Tribunal) have caused some disquiet within the PE and VC sector in Kenya.

The Ghanaian government implemented VAT provisions from the VAT Act of 2013 on January 1, 2024, as part of its post-COVID-19 economic recovery program.

Recent tax developments from eight countries on the continent.

South Africa applies a residence basis of taxation, subjecting South African tax residents to tax on worldwide income and capital gains, while non-resident taxpayers are subject to income tax on South African source income or income that is deemed to be from a South African source.

In line with the constitutional power to make relevant executive Orders and the provisions of the Nigerian Oil and Gas Industry Content Development Act, 2010, the President of the Federal Republic of Nigeria enacted the Oil and Gas Companies.

On 27^th February 2024, the Federal Government of Nigeria launched the Expatriate Employment Levy Handbook which introduced the Expatriate Employment Levy, a mandatory contribution levied on employers of expats in Nigeria.

In 2019, the Ghana Revenue Authority (GRA) in exercise of its statutory duty conducted a tax audit of Seadrill Ghana Operations Limited from January 2012 to December 2018. 

An amendment to the first schedule of the Income Tax, 2015 (Act 896) resulted in a new annual graduated tax scale for resident individuals.

In a bold move towards self-sufficiency, Zimbabwe embarks on a journey of domestic resource mobilization with a bouquet of tax measures blossoming in 2024.

Zambia's 2024 Budget aims to unlock economic potential through policy consistency and implementation. Growth is projected to rise from 4% in 2023 to 4.8% in 2024.

The term ‘beneficial ownership’ (‘BO’) has a somewhat elusive meaning.

Transfer pricing in Senegal has taken a significant step forward in terms of aligning with international taxation norms, marked by the Minister of Finance's order on 1 August 2023, detailing transfer pricing documentation content.

Globally, the tax ecosystem is shaped by Court/Tax Tribunal decisions and executive directions.

The Income Tax Act (“Act”) has been in existence since 1974. 

The Angolan Parliament has approved and published in the Official Gazette, Law no. 14/23, of 28 December introducing substantial adjustments to the provisions of the VAT Code.

Recent tax developments from eight countries on the continent.

In October 2023, the Federal Inland Revenue Service (FIRS) issued a guideline on desk examination, tax audit, investigation and inquiry processes to offer clarifications on the nature and scope of the FIRS’ inquiry process to avoid conflict of roles thereby replacing prior communications on the subject.

WTS Africa has premier local tax firms, law firms, and advisors that ensure our updated knowledge of local laws and practices in 50 out of 54 countries on the African continent.

The High Court in Kenya delivered a judgement allowing an investment deduction in respect of capital expenditure incurred on the construction of a building and installation of machinery. The judgment is significant from the point of view of prospective application as well as construction of tax statutes. 

The tremendous effort of the government to increase the tax net and promote voluntarily tax compliance, there has been a new tax amendment passed by parliament and assented to by the president.

In terms of section 9D of the Income Tax Act 58 of 1962, income tax is imposed on South African shareholders of ‘controlled foreign companies’ on the income earned by the CFC in certain circumstances.

Senegalese tax legislation references the arm's length principle since the 2018 Finance Act, particularly in Article 17, paragraph 1 of the General Tax Code, and provides for related party notion.

The Federal Inland Revenue Service recently published Guidelines for the Refund of Value Added Tax paid by Diplomats, Missions and International Organisations on Goods and Services purchased to provide such qualified persons with a framework for processing such requests for VAT refunds.

Mauritius is increasingly popular as a platform for Fund Managers to structure investment funds, including Collective Investment Scheme(“CIS”) and Closed-End Fund (“CEF”) vehicles, targeting Africa and Asia. 

Recently, the issue of the corporate tax residency of companies incorporated outside Kenya has arisen, especially for multi-national enterprises with a business presence or related entities in Kenya.

In 2023, with the conflict involving Russian Federation and Ukraine, the global economy has been volatile, and several countries have been facing economic difficulties, inter alia, inflation especially in Europe and in the USA.

Recent tax developments from six countries on the continent.

The high court on 10 November 2022 gave a ruling on Coca-Cola Eequatorial Africa limited vs. the commissioner general.

The donation will provide 120 girls in rural government schools with a year's supply of sanitary products. This will assist in addressing the Period Poverty plaguing them. 

Recent tax developments from six countries on the continent.

Recent tax developments from six countries on the continent.

The Supreme Court of Ghana upheld the provisions of the Revenue Administration Act, 2016, Act 915 (as amended) and High Court (Civil Procedure) Rules, 2004 (C.I 47) of pay now and argue later in the case brought before the Supreme Court by Richard Amo-Hene.

Since 2018, the Senegalese government has instituted reporting and documentary obligations in Transfer Pricing in accordance with the OECD BEPS actions 8-10, 12 and 13. However, it must be recognized that Transfer Pricing tax litigation is not yet abundant in Senegal, even though the regulatory framework is constantly being strengthened as a result of the various tax reforms that have already been discussed in previous issues of this newsletter.

This case is an application filed by Afia African Village Limited (AAVL) “Applicant” seeking to invoke the supervisory jurisdiction of the Supreme Court to quash the ruling of the High Court. 

On 24th November 2022, Mr. Ken Ofori-Atta, the Minister in Charge of Finance and Economic Planning presented to the Parliament of Ghana a draft budget for the fiscal year of 2023.

Kenya’s 2022 Finance Act amended various provisions of the income tax law.

The Value Added Tax Act, 2013 has been amended by the Value Added Tax (Amendment) Act which came into force on 12 September 2022. 

More than 5 years after the signature of the Multilateral Instrument (MLI) on June 7, 2017, Senegal deposited its instrument of ratification of the Multilateral Convention on May 10, 2022.

In Senegal, the Transfer Pricing provisions, largely inspired by the OECD Guidelines 2017, have been incorporated into the Senegalese General Tax Code.

Awareness and compliance with Nigeria’s Income Tax (Transfer Pricing) Regulations 2018 has gained increased momentum and attention among associated taxable persons and tax professionals.

Within the framework of the OECD Convention on Mutual Administrative Assistance relating to Taxation, Senegal has signed the Multilateral Convention called MLI.

Part 2 of the Income Tax (transfer pricing) Regulations 2018 (TP Regulations) focuses on compliance with the arm’s-length principle, Advanced Pricing Agreements and corresponding adjustments. Section 5 of the TP regulations clearly cites that in determining whether a transaction is compliant with the arm’s-length principle, such a transaction must be guided by the available TP methods as listed thereunder.

An insight on the new regulations of the Senegalese tax law on transfer pricing.