NL-Africa Tax Newsletter – November 2024

Dear business relation,

This month’s NL-Africa Tax Desk newsletter includes, amongst others, a notice of tax incentives in the Nigerian oil and gas industry. Next to that and referring to October’s NL-Africa Tax Desk newsletter, the South African dividends tax rate under the South Africa-NL, South Africa-Sweden and South Africa-Kuwait tax treaty is anticipated to increase. This newsletter includes an update on this too.

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). Please visit our website for more information on the NL-Africa Tax Newsletter and the services we offer or to download our factsheet.

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

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Africa 

• KPMG BEPS 2.0 (Pillar Two) tracker
• OECD update on transparency and exchange of information on request in respect of Rwanda, Senegal and Uganda 
• Taxation of the digitalized economy
• Transfer pricing documentation summaries by jurisdiction

Egypt

• New VAT rules on exported services

Kenya

• Kenya publishes overview of proposed new tax measures
•  Supreme Court holds Finance Act, 2023 constitutional, overturns Court of Appeal

Nigeria

• Article on impact Investing and tax transparency in Africa ((Pdf version available upon request))
• Notice of tax incentives on deep offshore oil and gas production 

South Africa

• Conduit principle does not apply when capital gains are realized by a trust
• Proposal to apply official rate of interest rule to loans to trusts
• Proposed changes to foreign exchange loss carryforward rule for non-trading companies 
• Protocol to South Africa-Kuwait tax treaty entered into force on October 2, 2024
  This amended treaty also amends the rates at which Dutch and Swedish shareholders of South African will be subject to dividends tax in future. Thus, there is now a withholding tax obligation in respect of dividends paid (or becoming due and payable) to Kuwaiti, Dutch and Swedish shareholders on or after this date. Please also refer to: South Africa-Kuwait protocol ratified by Kuwait
• National Treasury publishes discussion paper for public comment on phase two of Carbon Tax 
• Updated legislation implementing Pillar Two global minimum tax rules submitted to Parliament