Category Taxation In Africa

Ghana Needs Drain Tax

October 3, 2017 Taxation in Ghana

The Drain (i)ACCRA – Ghana needs to tax property owners in order to fund anti-flooding measures.

The World Bank is recommending that the government of Ghana begins levying a new tax to help pay for the construction of drainage and anti-flood measures in the country.

The suggestion for a so-called drainage tax came after a tour of selected flood-prone areas by a working group at the bank.

It was suggested that a drainage tax be set up to be directly property owners, hotels, and individuals who live in flood-prone lowland areas.

In addition to funding flood-water drainage infrastructure, the funds raised by the tax could also be used to build and maintain wastewater disposal facilities in cities.

Flooding is a significant problem in Ghana, with recent floods in 2015 killing hundreds of people.

The gov...

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South Africa’s Sugar Tax Approaches

September 6, 2017 Taxation in South Africa

tax on sugary drinksJOHANNESBURG – South Africa’s sugar tax will come into effect in April 2018, however, nobody knows exactly what the tax will look like.

At a joint meeting of Parliamentary health and finance committees in South Africa it was indicated that the country’s proposed tax on sugar sweetened beverages may come into force by April 2018.

However prior to the tax being enacted, the government must still decide on the exact rate of the new tax.

Initially the government hoped to introduce the tax at a rate of 20 percent.

Currently, the government’s proposal has been diluted to a rate of 10 percent at the time of introduction, with gradual increases to the rate as time goes on.

Alternatively, industry leaders are calling for the government to introduce a further watered down tax which would reach ...

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Tax Breaks for Start-Ups Fall Flat in South Africa

July 25, 2017 Taxation in South Africa

Tax breaks for startupsPRETORIA – Tax breaks aimed at fostering a thriving small-business and start-up environment in South Africa have been labelled a resounding failure.

New information released by the South African Revenue Service indicates that the government’s endeavour to boost investment into small business has failed, as over the last two years only one entity has taken advantage of a special tax break for businesses making grants to small businesses.

Currently, an entity which makes grants to small businesses is able to enjoy tax exemptions, if it is registered for the exemption with tax authorities.

The businesses which receive the grants from a registered entity would also enjoy exemptions.

The program of exemptions was started in March 2015, and was intended to encourage a greater level of inves...

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South Africa Eyes Global Income Tax

July 21, 2017 Taxation in South Africa

Income Tax in South AfricaPRETTORIA – Within 2 years South Africans working overseas will be paying taxes in South Africa on their foreign incomes.

South African taxpayers working overseas may soon see a drastic rise in their tax bill, as tax authorities make moves to begin levying income tax on money earned while working overseas.

The South African Revenue Service released a proposed amendment to the national tax code, which would require any South African taxpayer working outside the country to continue paying income tax on their foreign earnings.

Under current regulations, any South African taxpayer who is out of the country for 183 per year, and meets some pre-set income thresholds will not be required to pay income tax on their overseas earnings.

The proposed legislation does allow for a rebate on the taxe...

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Nigeria Expects $1 Billion from Tax Amensty

July 4, 2017 Taxation in Nigeria

tax evasion in NigeriaABUJA – Nigeria is tempting tax dodgers to come forward in exchange for immunity for harsh prison sentences and staggering penalties.

Nigeria has launched a new tax amnesty scheme intended to encourage taxpayers to come clean about their previously undeclared incomes and assets.

The new scheme runs from July 1st 2017 until December 31st 2017, and will grant participants immunity from prosecution for tax offences, and will protect them from harsh penalties and interest charges.

Under normal circumstances, taxpayers in Nigeria who commit tax fraud may be liable for imprisonment of up to 5 years, forfeiture of assets, and penalties of up to 21 percent of the taxes outstanding compounded per year.

To improve the effectiveness of the tax amnesty scheme, authorities have already begun compiling...

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