NL-Africa Tax Desk newsletter – May 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 newsletter includes the latest on transfer pricing in Africa. Transfer pricing in developing countries remains a key focus area of the UN Tax Committee and the African Tax Administration Forum has recently shed its light on the BEPS Pillar One proposals, too. Furthermore, we have seen developments around country-by-country reporting in Kenya and Nigeria, as well as how in Tanzania newly introduced transfer pricing guidelines help companies to prepare for tax audits.

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

• African Tax Administration Forum (ATAF) sends revised BEPS Pillar One proposals to the Inclusive Framework 

• Country-by-Country Reporting and Master File / Local File: country implementation summary

• COVID-19 global tax developments summary 

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

• OECD - Tax Transparency in Africa 2021: Africa Initiative Progress Report

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

• UN Tax Committee releases 2021 edition of the practical manual on transfer pricing for developing countries

Kenya

• Marketing support services for non-resident entities, zero-rated for VAT purposes (tribunal decision)

• Tax measures in Finance Bill, 2021

Mauritius

• Mauritius introduces online VAT registration

Mozambique

• Government approves the waiver of fines and reduction of interest on late payment for social security

• Partial amendment of the regulation of the Investment Law

Nigeria

• Guidelines for VAT on tolls, paid parking, parks and entertainment

• Suspended country-by-country reporting requirements for MNE branches and subsidiaries

• Tax collection agents reminded to remit taxes collected by deadline

• Tax Dispute Resolution Survey 2021

• Tax Function Assessment Report

South Africa

• Documentation for interest-free or low-interest loans involving trusts

• SARS issues guide on Employment Tax Incentive

• SARS issues interpretation note on taxation of foreign dividends

• Tax deduction for home office expenses, proposed revised guidance (COVID-19)

• Tax deferral when separate contracts address accrual of income and future expenditures

• Tax filing season for individual taxpayers (2021)

Tanzania

• Rendering of intra-group services and transfer pricing audits

• VAT and practical challenges associated with rebates, volume discounts