Category Taxation In Africa

Chinese Firms Evading Ugandan Taxes, Says URA

May 28, 2018 Taxation in Uganda

Ugandan ShillingsKAMPALA – The Ugandan tax authorities are drawing attention to the scale of the tax evasion committed by Chinese businesses operating in the country.

The Uganda Revenue Authority (URA) recently published a list of companies which are understood to be engaged in VAT fraud, noting that a significant portion of the companies is made up of Chinese firms.

The URA has estimated that between 2015 and 2017 the actions of VAT evaders resulted in a loss of UGX 200 billion in tax revenues.

So far the government has recovered UGX 60 billion in lost tax revenues from the tax evading companies on its list.

The URA’s list contained 148 companies, with 93 being operated by foreign interests, and at least 90 of those being from China.

The listed businesses are accused of issuing fake invoices for tra...

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Mobile Money Under Tax Threat in Uganda

May 3, 2018 Taxation in Uganda

Airtel Money - mobile moneyKAMPALA – Taxes on mobile money could seriously dampen the uptake of modern financial technology and systems in Uganda.

On May 1st, at the launch of the Uganda Rural Challenge Fund, representatives of financial institutions in Uganda collectively claimed that the government’s planned tax on mobile money transfers will inhibit financial inclusion.

The government hopes to enact a tax of 1 percent on all mobile money transactions.

Mobile money and other cell phone-centric payment systems have proven to be popular in Uganda, especially among poorer taxpayers who do not have ready access to banks and other traditional financial tools and services.

Uganda currently has an estimated 20 million mobile money users, and the Uganda National Financial Inclusion Strategy 2017-2022 hopes to see the...

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Morocco Will Tax Online Tourist Bookings

April 19, 2018 Taxation in Morocco

Morocco accommodation taxRABAT – Morocco wants tourists to use traditional hotels and travel agents, instead of making bookings online.

The government of Morocco has reportedly set its sights on online travel and accommodation booking providers, in order to even the playing ground between traditional tourist service providers and the new technology-focused providers.

The government has not disclosed any proposals for how the tax will function, how it will be levied, or what the potential tax rate will be, however, it was indicated that the tax will come into effect in 2019.

It is also known that when the tax comes into effect, authorities will use undercover inspectors to ensure that accommodation providers using online booking are paying the taxes owed on the short-term rentals.

The government explained that t...

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Connect to Social Media and Get Taxed, Says Uganda

April 13, 2018 Taxation in Uganda

social media tax ugandaKAMPALA – Uganda’s government wants to anyone who uses social media platforms, as such technology is used primarily for gossip.

The government of Uganda is looking to enact a new tax on the use of social media on mobile devices, a move which is claimed will plug budgetary gaps, even though some are claiming it’s actually aimed at quashing dissent among taxpayers.

The new tax would be levied at a rate of UGX 100 per day per SIM card, if that SIM card is used to connect to a social media service.

The proposed tax not only encapsulates connections to traditional social media platforms such as Facebook, but also extends to platforms used primarily for communication, such as WhatsApp, Skype, and Viber.

President Yoweri Museveni claimed that the social platforms are used primarily for lugamb...

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South Africa’s Sugar Tax Launched

April 4, 2018 Taxation in South Africa

sugary drink taxPRETORIA – South Africa is tackling its obesity epidemic by targeting sugary drinks.

Over the weekend South Africa’s tax on sugary drinks came into effect, with manufacturers now paying out a fee if their drinks are too sweet.

From April 1st, manufacturers and importers of sugar-sweetened beverages will be liable to pay a levy on the sugar content of the drink.

The levy is only charged if the drink has sugar content in excess of 4 grams of sugar per 100 mls.

The rate of the levy is currently set at ZAR 0.021 per gram, for each gram over the 4g threshold.

The threshold was set at 4g to encourage manufacturers to create low-sugar alternatives.

It is hoped that the new tax will help alleviate the problem of obesity in South Africa, as it is now the country with the highest obesity rate ...

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