Worldwide: Africa Tax In Brief

AFRICA: Provisions proposed by African Tax Administration Forum included in OECD's Pillar One rules

The African Tax Administration Forum ("ATAF") has succeeded in gaining the inclusion of several of its proposed provisions in the Pillar One and Pillar Two rules, although certain other aspects were not adopted in the OECD's global tax deal.

Following the 11 July 2023 OECD/G20 Inclusive Framework ("IF") outcome statement summarising the commitment of 138 countries on the "two-pillar solution" to address tax challenges arising from the digitalisation of the economy, the ATAF announced that:

• it succeeded in gaining inclusion of several provisions in the Amount A rules, which is estimated to roughly double the allocation of profits to the 27 IF members, such as the allocation rules for the tail-end sales to lower-income countries;
• the ATAF and African countries succeeded in negotiating for the binding dispute resolution mechanism being elective rather than mandatory for issues relating to Amount A, with an African country only undergoing this process if it elects to do so;
• the African countries that are IF members are committed to not imposing newly enacted digital service taxes and relevant similar measures between 1 January and 31 December 2024 if a critical mass of jurisdictions sign the Amount A Multilateral Convention ("MLC") by the end of 2023. This is a concern as African countries have expressed the need to start taxing digital firms generating profits in their countries and not wait until the MLC comes into effect, which is highly unlikely to be before 2026 or 2027;
• the ATAF and African IF members successfully negotiated to have country risk adjustments included to increase the global profit margins in the Amount B pricing matrix for those jurisdictions that have no financial data;
• the IF committed to incorporating the Amount B rules in the OECD transfer pricing guidelines in January 2024 and many African countries — including many that are not IF members — will use the transfer pricing guidelines;
• in respect of the Pillar Two rules, the ATAF and African countries successfully negotiated for all payments relating to the provision of services within the scope of the Subject to Tax Rule ("STTR"); and
• it also succeeded in getting the STTR to apply in priority with the Global Anti-Base Erosion (GloBE) rules, meaning that the application of the STTR does not consider tax under an Income Inclusion rule (IIR), Under-taxed Profit Rule (UTPR) or a Domestic Minimum To-Up Tax, which helps to protect source taxation rights and offers some defence against profit shifting.

ANGOLA: VAT on food to be reduced

During a press conference held by the Minister of State for Economic Coordination on 14 July 2023, the government announced that it plans to:

• reduce the value-added tax ("VAT") on essential food items from 14% to 7% with the aim of reducing the cost of living;
• exempt property transfers valued at AOA40-million from property tax;
• grant a 50% exemption on property transfers valued between AOA40-million and AOA100-million;
• eliminate stamp duty on real estate development and registration of share capital for companies; and
• allow companies to update their balance sheets by providing monetary and accounting updates to fixed assets at fair value without incurring any tax implications.

The effective dates of implementation are yet to be announced.

ANGOLA: Expiry date for VAT self-invoicing regime removed

The removal of the expiry date for the VAT self-invoicing regime was announced through Presidential Decree No. 144/23, published on 29 June 2023, and will come into force 30 days after its publication.

The VAT self-invoicing requirement was introduced on 16 August 2020 and set to expire on 31 December 2022. The regime is applicable:

• to entities with tax residence in Angola keeping accounting records (ie, not under the simplified regime) and operating in the agriculture sector and other activities including handicrafts, manufactured products, as well as services of a diverse nature;
• where the transfer of goods or the provision of services is carried out by natural persons without the capacity to issue invoices or equivalent documents; and
• to the transfer of movable property subject to registration by natural persons for personal use for more than six months.

BURKINA FASO: Conditions for issuing tax clearance certificates issued

Decree No. 2023-0351/MEFP/SG/DGI, which was adopted on 12 July 2023 and published on 14 July 2023, clarifies to whom tax clearance certificates, as introduced by the Finance Law 2023, may be issued by the General Directorate of Taxes (Direction général des Impôt, DGI) as well as the conditions under which they may be issued.

The tax clearance certificate certifies that the person to whom it is issued is in compliance with their tax obligations. The term "person" includes:

• any natural person or legal entity (NGO, association or foundation) wishing to provide proof of tax compliance;
• any director, majority shareholder or beneficial owner; and
• any company that has ceased, sold or relocated its activities outside the national territory.

The tax clearance certificate is:

• issued subject to payment or proof of exemption from all due taxes, including income taxes, withholding taxes, motor vehicle tax, property use tax and registration duties; and
• only valid if it is endorsed by a relevant tax department director and subject to payment of a stamp duty of CFA500.

BURKINA FASO: New consumption tax adopted

On 24 June 2023, the transitional parliament of Burkina Faso adopted a law, which was promulgated in Decree No. 2023-0791/PRES-TRANS of 30 June 2023, introducing a new tax (special contribution) on the consumption of specific goods and services, in addition to excise duties.

The special contribution is calculated based on the value determined according to the nature of the taxable goods and services (ie, customs value, selling price, quantity or weight) and is payable by producers, importers, telephone and television companies, as well as land transferors.

BURKINA FASO: Use of IFU number in land-related transactions mandated

Through memo no. 2023-0022/MEFP/SG/DGI adopted on 9 June 2023 and published on 14 June 2023, the General Tax Director informed taxpayers requiring public services in respect of property, land and cadastral matters that, from 1 July 2023, it will be mandatory to display their unique financial identifier (Identifiant Financier Unique, IFU). Failure to do so may result in transactions being declared invalid.

The IFU must be displayed on the following documentation:

• deeds of sale or exchange or division of land;
• agreements of sale or assignment, power of attorney and promises of sale;
• mortgage agreements and guarantees; and
• applications for land and titles (certificates, permits, by-laws and land titles).

CABO VERDE: Exceptional tax debt settlement regime introduced

The Cabo Verde Tax Authority has introduced an exceptional debt settlement regime, offering taxpayers with outstanding obligations the possibility of debt negotiation over longer terms, until 31 December 2023.

If eligible companies fail to voluntarily comply with the exceptional debt settlement regime, the tax authority issues an unofficial plan with the number of instalments established under the terms of Decree Law No. 1/2023.

CABO VERDE: Law enacted enabling banks to breach secrecy of debtors to Tax Authorities

The President has enacted a law that allows banks to lift banking secrecy at the request of the tax administration, a social security institution or under international agreements.

According to the proposed amendment to the General Tax Code:

• access by the tax administration to information or bank documents without the consent of the holder is possible when there is proven existence of debts to the tax administration or social security authority;
• banks will have the obligation of automatic communication regarding the opening or maintenance of accounts by taxpayers whose tax situation is not regularised, as well as regarding payments and/or receivables that have an origin from or destination to entities that are subject to tax-favourable regimes; and
• taxpayers are obliged to declare in the corresponding tax return the existence of deposit accounts or securities opened in a financial institution that is a non-resident of Cabo Verde, of which they are holders, beneficiaries or are authorised to carry out transactions.

CAMEROON: South Africa publishes English synthesized text of Cameroon-South Africa treaty

On 18 July 2023, the South African Revenue Service published the English synthesised text of the Cameroon - South Africa Income Tax Treaty (2015), displaying the modifications made to the treaty by the multilateral instrument ("MLI").

South Africa and Cameroon deposited their instrument of ratification of the MLI on, respectively, 30 September 2022 and 21 April 2022. The MLI therefore entered into force for South Africa on 1 January 2023 and for Cameroon on 1 August 2022.

Unless stated otherwise in the synthesized text, the provisions of the MLI will generally have effect (other than article 16 regarding the Mutual Agreement Procedure) with respect to the Cameroon - South Africa Income Tax Treaty (2015) in both South Africa and Cameroon:

• with respect to taxes withheld at source on amounts paid or credited to non-residents, where the event giving rise to such taxes occurs on or after 1 January 2023; and
• with respect to all other taxes levied by each contracting state, for taxes levied with respect to taxable periods beginning on or after 1 July 2023.

KENYA: Implementation of Finance Act 2023 suspended by the High Court

Following a case brought by several petitioners seeking a declaration that certain parts of the Finance Act 2023, which was passed on 26 June 2023 and assented to by the President, should be removed on the grounds that they are unconstitutional, the High Court of Kenya has temporarily suspended the implementation of the Act until 5 July 2023 when the case is heard in court.

MAURITIUS: Tax Agreement with Hong Kong enters into force

On 23 June 2023, the Hong Kong - Mauritius Income Tax Agreement (2022) entered into force and generally applies from 1 July 2023 in respect of Mauritius and from 1 April 2024 in respect of Hong Kong. From these dates, the agreement will generally replace the provisions of article 9 of the Hong Kong - Mauritius Transport Tax Agreement (1998).

MAURITIUS: Details re deployment of the e-invoicing system launched

On 26 June 2023, the Mauritius Revenue Authority ("MRA") released details on the deployment of the national electronic invoicing (e-invoicing) system, which will be implemented through a phased approach.

During Phase 1, in-house or independent software developers, as well as commercial solution providers of electronic billing systems ("EBS") are required to register, customise, test, and self-certify their EBS for compliance with the MRA e-invoicing system starting 26 June 2023. To facilitate Phase 1 implementation, the MRA is requesting solution providers to sign up to the MRA e-invoicing developer portal to access functional specifications, technical documentation, and other information detailing the MRA invoicing system requirements.

Phase 2, will require businesses and economic operators to generate invoices or receipts using MRA-compliant EBS solutions. Pre-validation of these invoices or receipts in real-time with the MRA will be mandatory before issuing them to customers. From January 2024, customers (both business and the general public) receiving these invoices or receipts will be required to verify that the documents have been validated with the MRA.

Currently, the system mandate is limited to e-invoices and e-receipts, as well as their debit and credit notes. Invoicing data needs to be submitted with the corresponding digital certificate using a JSON format via an API that will connect to the MRA's invoice fiscalisation platform for validation. The MRA will assign an invoice registration number (IRN) and a QR code. Additional conditions, restrictions, and specifications are described on the MRA's portal.

NIGERIA: Enactment of excise taxes on single use plastics and telecom services suspended

In order to rectify the negative impacts of tax adjustments on businesses and households, the President has signed the Customs, Excise Tariff (Variation) (Amendment) Order 2023 suspending the enactment of the following taxes and levies temporarily from 27 March 2023 to 1 August 2023:

• a green tax on single-use plastics;
• a 5% excise duty on telecommunications services;
• excise duties on selected goods manufactured locally; and
• an import tax adjustment levy on certain vehicles.

In addition, the President also postponed the commencement dates of the changes contained in the Finance Act (Effective Date Variation) Order 2023 from 23 May 2023 to 1 September 2023 (see Nigeria Issues Notice on Implementation of Finance Act 2023 (12 June 2023)).

NIGERIA: Due date for filing corporate income tax returns for the 2023 year of assessment

Through a notice given on 10 July 2023, the Federal Inland Revenue Service ("FIRS") informed taxpayers that the due date for filing company income tax ("CIT") returns has been extended from 30 June 2023 to 31 August 2023.

Penalties and interest shall only apply where the relevant CIT returns were not filed by the extended due date of 31 August 2023. In such a case, penalties and interest for late payment shall be computed from the original due date and not the extended due date.

The extension of the filing date is only for CIT and does not include returns for withholding tax, value added tax and personal income tax.

NIGERIA: VAT Direct Initiative introduced to administer VAT in informal sector

On 3 July 2023, the FIRS announced that it has partnered with the Market Traders Association of Nigeria (MATAN) through a collaboration dubbed "VAT Direct Initiative ("VDI")" to collect and remit VAT from the informal sector using unified systems technology. The collaboration also aims to:

• simplify VAT payment and remittance for the marketplace and informal sector thereby boosting VAT revenue from the informal economy;
• monitor and evaluate VAT administration for transparency and accountability within the marketplace and informal sector;
• promote awareness on VAT collection and remittance in the marketplace and also in the informal sector; and
• eliminate multiple taxation in the marketplace.

The VDI utilises a digital scheme where a digital platform is used to organise members' digital identification cards and also track the turnover of VAT to be collected and remitted to the FIRS.

Following the introduction of the VDI, the FIRS has subsequently exempted dealers of foodstuff and artisans whose turnover is below NGN25-million and those who trade in VAT-exempt goods from the VDI.

NIGERIA: TaxPro-Max platform for VAT filing and payment updated

The FIRS has updated features of the TaxPro-Max platform used for VAT filing and payment by introducing the VAT credit mechanism. The mechanism requires suppliers to remit VAT collected from customers to the FIRS using a new sales schedule format for customers to claim the allowable input VAT on purchases made.

The FIRS also modified the sales adjustment process so that taxpayers will be able to adjust prior sales figures when filing. A taxpayer is now required to provide the item identification number of the sales for the previous month(s) to make such adjustments. In addition, where a taxpayer needs to make a sales adjustment for the previous month, the platform will reverse the VAT credit granted in that month.

On 2 July 2023, FIRS issued clarification that taxpayers should observe the following while filing VAT using the TaxPro-Max portal:

• taxpayers claiming input VAT for purchases should upload a purchase schedule; whilst those claiming input VAT for withholding VAT should upload a withholding VAT schedule; and
• businesses claiming input VAT for imports should upload a purchase imports schedule.

NIGERIA: Guidelines on withholding, self-accounting of VAT issued

The FIRS has recently published guidelines on the withholding and self-accounting of VAT. The guidelines provide for the following:

• a company with an obligation to withhold VAT on taxable supplies must remit the VAT to the FIRS and comply with all its existing VAT obligations;
• suppliers of taxable supplies must distinctly state the gross amount of taxable supplies, the VAT rate, and the VAT charged on each invoice. If VAT is not included in the invoice, then the self-account rule will apply;
• companies covered under the VAT Act must include and collect VAT on all invoices and file returns of VAT collected using (Form 002) on or before the 21st day of the following month;
• companies must remit the VAT to the FIRS in the currency of such transaction at the time the VAT is filed and deduct input VAT according to the law;
• companies should deduct output tax from goods that form stock in trade on which input tax has been charged;
• companies should separate returns on VAT collected from VAT withheld;
• companies with an obligation to withhold VAT from suppliers must:
  • deduct or withhold VAT;
  • prepare a schedule reflecting the name, TIN and address of the contractor or supplier, gross amount of invoice, amount of VAT and month of return; and
  • remit the VAT withheld to the FIRS using the relevant module on Taxpro Max platform and file returns using Form 002A or formats determined by the FIRS;
• companies with an obligation to self-account for VAT must:
  • compute and self-charge the applicable VAT;
  • prepare a schedule reflecting the name, TIN and address of the contractor or supplier, amount of invoice, amount of VAT self-charged and the month of return; and
  • self-account and remit the VAT using the relevant module on Taxpro Max platform and file returns using Form 002A or formats determined by the FIRS;
• companies receiving the supplies between two companies under an obligation to withhold VAT, must account for the VAT on the transaction;
• an appointed Nigerian agent shall be responsible to self-account and remit VAT where an appointed non-resident person fails to collect VAT;
• companies required to account for VAT must maintain a "VAT Withheld Account" different from its VAT Accounts, record to its credit all VAT withheld from suppliers, and to its debit all sums remitted to the FIRS and make the statement of the account available to the FIRS for periodical audit;
• companies required to withhold VAT must accurately and correctly upload the schedules of suppliers on the Taxpro Max platform;
• VAT returns on taxable supplies must be submitted regarding the transaction and in the currency of the transaction; and
• non-compliance with the guidelines attracts sanctions as imposed by the VAT Act.

NIGERIA: 7.5% VAT on diesel implemented

The VAT (Modification) Order 2021 provides that VAT is chargeable on diesel and Nigeria has recently commenced levying VAT at 7.5% on diesel. All future importations of diesel would be subject to VAT at the point of entry into Nigeria.

RWANDA: 2023/24 Budget announces tax reforms

The following proposed tax reforms have been announced by the 2023/24 Budget, which was presented in June 2023:

• revising the income tax and tax procedure laws to reduce tax rates, broaden the tax base, improve compliance and curb tax evasion;
• reducing the corporate income tax rate from 30% to 28% with an eventual target of 20% in the medium term;
• exempting imported and locally produced rice and maize flour from VAT;
• exempting from VAT the transfer of assets between related parties in a group reorganised;
• zero-rating electric vehicles for VAT purposes;
• introducing a tax on the sale of immovable property at the rate of 2% of the property value;
• increasing import duties on doors, windows, wheelbarrows and specified handbags from 25% to 35%;
• reducing import duty rates on various specified strategic items, including rice, sugar, specified categories of vehicles, telecommunication equipment, electronic devices, second-hand clothing and shoes and raw materials used in industry;
• extending the import duty exemption to include:
  • construction materials under the Manufacture and Build to Recover Programme; and
  • luxury cars with a customs value exceeding USD60 000 used in the tourism sector.

São Tomé and Príncipe: Agricultural and livestock products exempted from VAT

Following São Tomé and Príncipe's implementation of its new VAT system, the government announced that the production and marketing of agricultural, horticultural, fish and livestock products are to be exempted from VAT. Generally, taxpayers with an annual turnover of at least STD1-million will be subject to VAT under the normal regime.

SIERRA LEONE: Norway treaty terminated

The Norwegian Ministry of Finance on 9 June 2023 terminated the Norway - Sierra Leone Income Tax Treaty (1955) by way of a Royal Decree of 9 June 2023. Norway has notified the authorities of Sierra Leone of the decision to terminate the treaty through diplomatic notes. The termination will take effect for withholding and other taxes from 1 January 2024.

UGANDA: 5% Digital services tax on non-resident providers of digital services approved

The Ugandan parliament on 12 July 2023 approved a 5% digital services tax (DST) on non-residents providing digital services to customers in Uganda. Digital services subject to tax include data services, online gaming, services delivered through an online marketplace or intermediation platform, digital content services, including accessing and downloading of digital content, cloud computing services, data warehousing, other services delivered through a social media platform or an Internet search engine, and any other digital services as the Minister may prescribe.

In addition, companies reporting losses for more than seven years will now only be allowed a deduction of 50% of the losses carried forward to the following year of income in determining the taxpayer's chargeable income.

UGANDA: Law implementing Convention on Mutual Administrative Assistance in Tax Matters and Multilateral Agreement on Automatic Exchange of Information (CRS-MCAA) ratified

On 29 June 2023, the Ugandan parliament published the Convention on Mutual Administrative Assistance in Tax Matters (Implementation) Act, 2023, signed by the president on 23 June 2023, ratifying the law and giving force to the Multilateral Convention on Mutual Administrative Assistance in Tax Matters, as amended by the 2010 protocol, and the Multilateral Competent Authority Agreement‎ on Automatic Exchange of Information Agreement (2014) (CRS-MCAA) on the introduction of the automatic exchange of financial account information on a reciprocal basis.

UGANDA: Supplementary Tax Amendment Bills 2023 tabled

Following the 2023/24 budget speech on 15 June, the Minister of Finance, Planning and Economic Development has tabled supplementary Tax Amendment Bills 2023 before parliament, aimed at ensuring equal tax treatment between Islamic finance businesses and takaful businesses providing conventional financial services or insurance business. The Bills will take effect on 1 July 2023 following approval and assent by the parliament and the President respectively. Proposed amendments include:

Direct taxation

• requiring a resident partner in a partnership arrangement under an Islamic financial business to withhold 15% tax on interest sourced in Uganda accruing to a non-resident partner;
• imposing 15% withholding tax on agency fees earned by non-residents under an Islamic financial business;
• requiring a resident person paying fees to a resident person for management, agency or professional services provided to an Islamic financial business to withhold 6% tax on the gross amount of the payment;
• requiring a resident person paying a premium for re-takaful services provided to a non-resident person to withhold 10% tax on the gross amount of the payment;
• payment of the excess of the return on investment made to the bond holder under Islamic financial business will be considered as dividends;
• expanding the scope of interest to include:
  • payments, such as discounts or premiums, made under sale-based financing or lease-based financing under Islamic financial business;
  • excess of the total amount paid by a bond issuer which is over and above the amount received from a bond holder under Islamic financial business for each payment period; or
  • a partner's share of the partnership income derived from a partnership arrangement under Islamic financial business;
• expanding the scope of partnerships to include equity or partnership financing under Islamic financial business;
• clarifying the term "takaful", which means insurance business conducted in accordance with Shariah principles;
• recognising an amount of the portion of the interest of the person disposing of a partnership under an Islamic financial business as follows:
  • a receivable when the taxpayer actually becomes entitled to the instalment due in accordance with the partnership agreement; and
  • a payable when the taxpayer becomes liable to pay the instalment due in accordance with the partnership agreement;
• adding the transfer of assets between takaful participants to the list of transfers in which losses or gains are not recognized in determining chargeable income;
• excluding an investment in Islamic financial businesses where there is an equity or partnership agreement as being a branch;
• requiring a manager of a takaful business to file an income tax return for each year of income not later than six months after the end of that year on behalf of the participants in each group in the takaful business;
• relieving a non-resident person licensed to carry on Islamic financial businesses in the form of a partnership or who has no physical place of business in Uganda from furnishing an income tax return;
• authorising the Commissioner General of the Uganda Revenue Authority ("URA") to re-characterise any arrangement under Islamic financial business not provided for under the Income Tax Act to the equivalent arrangement under conventional financial services for purposes of reflecting the equivalent economic substance; and
• allowing deductions used in the production of income in determining the chargeable income of a resident person arising from general takaful insurance business.

Indirect taxes

• Allowing taxpayers to claim VAT input credit on:
  • taxable supplies made to the person providing Islamic financial business for purposes of sale-based financing to the taxable person; and
  • imports of goods by the person providing Islamic financial business for purposes of a sale-based financing to the taxable person;
• authorising the Commissioner General of the URA to re-characterise any arrangement under Islamic financial business not provided for under the VAT Act to an equivalent arrangement under conventional financial services for purposes of reflecting economic substance;
• defining the term "Islamic financial business" to mean business that conforms to Shariah principles and includes:
  • receiving property into profit-sharing investment accounts, or of managing such accounts;
  • any other business of a person involving or intended to involve entering into one or more contracts under Shariah principles, including equity or partnership financing; lease-based financing; sale-based financing; currency exchange contracts; and fee-based activity;
  • purchase of bills of exchange, certificates of Islamic deposit or other negotiable instruments;
  • acceptance or guarantee of any liability, obligation or duty of any person; and
  • providing finance by any means, including through the acquisition, disposal or leasing of assets, or through the provision of services that have a similar economic effect and are economically equivalent to any other financial business.
• clarifying the time of supply for goods supplied to a person providing Islamic financial business for purposes of sale-based financing to be the earlier date on which payment is due or received;
• expanding the scope of rental agreements to include an agreement for lease-based financing;
• clarifying the term "takaful" which means an insurance business under Shariah principles;
• requiring managers of takaful businesses to file tax returns to the Commissioner for each tax period within 15 days after the end of the relevant tax period on behalf of the participants in each group in the takaful business.

Various changes have also been introduced through the Excise Duty (Amendment) (No. 2) Bill 2023 and Stamp Duty (Amendment) (No. 2) Bill 2023.

TANZANIA: Finance Act 2023 enacted

Following parliamentary approval of the 2023/2024 national budget, the Parliament of Tanzania has enacted the Finance Act, 2023 dated 30 June 2023 which became effective on 1 July 2023.

UGANDA: Amendments to Tax Laws enacted

The Government of Uganda has enacted a series of amendments to various tax laws announced by the Minister of Finance, Planning and Economic Development during the presentation of the Budget 2023/24 on 15 June 2023. The amendments will apply from 1 July 2023 unless stated otherwise. Significant amendments include:

Direct taxes

• repealing the initial allowance as an allowable deduction while determining a taxpayer's chargeable income. Previously, an initial allowance was allowed as a deduction to taxpayers at the rates below:
  • 50% of the cost base of an item of eligible property placed into service for the first time outside a radius of 50 kilometres from the boundaries of Kampala, during a year of income; and
  • 20% of the cost base of an industrial building placed into service for the first time outside a radius of 50 kilometres from the boundaries of Kampala during a year of income;
• excluding micro-finance deposit-taking institutions and tier-4 micro-finance institutions from interest deductibility rules of 30% of earnings before interest, tax, depreciation and amortisation;
• not recognising winnings derived by a person through sports and pool betting as property income;
• exempting employment income earned by a prosecutor in the office of the director of public prosecution from income tax;
• exempting winnings from gaming from withholding tax;
• adding ZEP-RE (PTA reinsurance company) to the list of exempt institutions;

Indirect taxes

• expanding the list of supplies for which input VAT is not creditable to include:
  • payments made by a person for the membership of a club, association or society of a sporting, social or recreational nature; and
  • payments made by non-residents supplying taxable goods or services to non-taxable persons in Uganda;
• designating an auctioneer as a supplier of goods supplied by way of auctioning and providing that goods and services supplied by way of auctioning are required to be treated separately for tax purposes;
• extending places of supply rules for services provided outside Uganda to include non-residents who supply digital and electronic services to non-taxable persons in Uganda;
• expanding the scope of "electronic services" to include advertising platforms, streaming platforms and subscription-based services, cab-hailing services, cloud storage and data warehousing;
• allowing non-resident suppliers of taxable services to pay taxes in United States dollars;
• expanding the scope of taxable supplies to include diapers, supply of cotton seed cake, supply of all production inputs necessary for processing of hides and skins into finished leather products in Uganda, and supply of leather products wholly made in Uganda;
• exempting from VAT:
  • animal feeds and mixed components such as eggshells, feed additives, wheat bran, maize bran, premixes, concentrates and seed cake; and
  • supply of billets for further value addition in Uganda;

Administration

• approving the waiver of all interest and penalties owed by taxpayers that will pay their principal tax outstanding as at 30 June 2023 by 31 December 2023. The waiver will be made on a pro rata basis;
• introducing fines and penalties for offences relating to digital tax stamps;
• taxpayers failing to provide information requested through the Commissioner General's notice for the purpose of administering any provision of a tax law, will not be allowed to provide that information when objecting to a tax decision or during alternative dispute resolution procedure proceedings, except where:
  • information that was requested is more than three years from the date the notice was authored; or
  • information requested is beyond the past 3 financial years from the date when the notice was authored; and
• requiring the Minister of Finance is required to seek the parliament's approval before remitting in whole or part the tax payable by the taxpayer.

ZIMBABWE: VAT zero-rating of ethanol extended to 2025

Statutory Instrument 62A of 2023 under the VAT (General) (Amendment) Regulations, No. 60 of 2023, which was published in the Zimbabwean Government Gazette on 19 May 2023, extended the period for VAT zero rating of the supply of ethanol to 31 December 2025, applying retrospectively from 1 January 2023. The initial period for this incentive had expired on 31 December 2022.

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