NL-Africa Tax Desk newsletter – February 2022

Dear reader,

The aim of this newsletter is to give you an easy-to-read overview of the latest tax updates in Africa.

This month’s NL-Africa Tax Desk newsletter includes updates on tax measures enacted in Nigeria, South Africa, Botswana, and Zimbabwe for 2022. In addition, there is updated transfer pricing guidance available on the interpretation and impact of OECD transfer pricing guidelines in Nigeria and South Africa.

If you would like to know more about the matters addressed in this newsletter or have any feedback, feel free to contact Sebastiaan Paling (Head of the NL-Africa Tax Desk).

Best regards,
NL-Africa Tax Desk team
Meijburg & Co

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Table of contents

Africa

• Transfer pricing documentation summaries by jurisdiction

• Taxation of the digitalized economy - update of summary of global developments

• Electronic invoicing (e-invoicing) and digital reporting global updates

OECD

• Initial impressions of draft rules for tax base determinations under Pillar One Amount A

• Investment tax incentives database for 36 developing countries

Botswana

• Budget 2022-2023 and tax measures

Cabo Verde

• Cabo Verde became the 41st country to deposit the agreement establishing the African Continental Free Trade Area (AfCFTA) 

Ghana

• Ghana removed from EU list of high-risk third countries

Kenya

• EU and Kenya advance talks on interim Economic Partnership Agreement

• VAT regulations held invalid (court decision)

• Withholding tax on purchases of software licenses (court decision)

Lesotho

• Lesotho signs Multilateral Instrument (MLI) 

Mozambique

• Personal tax season

Netherlands

• Update on 2022 tax treaty negotiations with (among others) Morocco, Mozambique, Uganda and Rwanda (in Dutch)

Nigeria

• Gas sector update

• High Court nullifies levy imposed on companies to finance a police trust fund

• New tax appellate rules - KPMG United States

• Stock-in-trade not limited to raw materials for claiming input VAT (tribunal decision)

• Summary of 2021 tax developments and outlook for 2022

• Transfer pricing outlook for 2022

South Africa

• Budget 2022; reduction in corporate income tax rate and broadening the tax base

• Draft interpretation note on intragroup loans, new transfer pricing guidance

• Effects of reduced corporate income tax rate on investors in REITs

• Expansion of employment tax incentive in budget 2022-2023

• Implications for tax incentives in budget speech

• Measures in budget 2022 concerning individual taxation and employment taxes

• New critical skills list published for an application for a work visa or permanent residence permit

• Proposed clarification of tax measures for mining sector in budget 2022

• Reminder of employer tax obligations

• Tax provisions concerning financial sector in budget 2022

Uganda

• Changes to social security measures

Zimbabwe

• Tax measures in Finance Act 2021