NL-Africa Tax Desk newsletter – September 2021

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 several important transfer pricing updates with Botswana and Namibia updating their transfer pricing (documentation) obligations and Togo joining the Inclusive Framework on BEPS. Next to that, in the Netherlands a draft bill aims to address transfer pricing mismatches as of 2022 by disallowing any downward adjustment of Dutch taxable income on the basis of the arm’s length principle, if in the other jurisdiction involved in the respective intragroup transaction no corresponding upward adjustment is subject to profit tax.

If you would like to know more about the matters addressed in this newsletter or have any feedback, you are welcome 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

• COVID-19 global tax developments summary

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

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

• Transfer pricing documentation summaries by jurisdiction

Algeria

• Algeria joins Global Forum on Transparency and Exchange of Information for Tax Purposes

Botswana

• Threshold for preparing and filing transfer pricing documentation

Kenya

• Effect of late filing of VAT returns on input VAT claims (High Court decision)

• High Court declares minimum tax as unconstitutional

• Kenya Revenue Authority withdraws ruling on treatment of tax losses

Morocco

• Morocco issues Tax Incentives Guidance (in French)

Namibia

• Transfer pricing adjustments when transaction not at arm’s length

Netherlands

• Information on the Netherlands-Kenya tax treaty provided under the Dutch Public Access to Government Information Act (in Dutch)

• Information on the Netherlands-Uganda tax treaty provided under the Dutch Public Access to Government Information Act (in Dutch)

• Main features of the proposed tax measures for 2022

Nigeria

• Matters arising from Implementation of Finance Act, 2020

• Rivers State government asks high court to dismiss order staying VAT enforcement

• Court of Appeal orders Nigerian states to maintain status quo on VAT administration

• VAT legislation introduced (Lagos State)

• Implementation of state VAT law (Rivers State)

• VAT, other taxes outside jurisdiction of federal government (Federal High Court)

• Authority of states to collect stamp taxes (duties)

• Are companies exempted from taxation under the Companies Income Tax Act required to withhold tax at source from qualifying payments

Togo

• Togo joins Inclusive Framework on BEPS