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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 several updates on the 2022 tax measures in Ghana, Zambia and Zimbabwe. Next to that, we have seen developments focused on tackling international tax avoidance with Mauritania and Rwanda joining OECD initiatives in this regard and the tax policy debate in the Netherlands moving towards increased international exchange of information on Dutch intermediate holding companies.

The report contains 15 recommendations, divided into six tax and nine non-tax policy options. At the same time, the Deputy Minister of Finance sent the government’s response to this report to the Lower House of Parliament.

On November 12, 2021 the Supreme Court rendered judgment in the proceedings initiated by KPMG Meijburg & Co concerning whether net share bonuses can qualify as part of the final levy for the purposes of the work-related costs rules (werkkostenregeling).

As the end of the year is fast approaching, many organizations will soon start preparing their year end financial statements. The announced 2022 Tax Plan may have a significant impact on those financials and especially the income tax position. The impact should be reflected once the 2022 Tax Plan is (substantively) enacted.

We have briefly outlined the adopted amendments and a selection of the adopted motions.

On November 2, 2021, the updated Specific State Supervision Policy Statement of the Deputy Minister of Finance was published. The updating of the original policy statement was necessary due to Supreme Court case law, which entailed a broader interpretation of specific state supervision than that in the earlier policy statement.

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 several updates on the international tax environment. We have seen jurisdictions of the OECD/G20 Inclusive Framework - representing more than 90% of global GDP - approve an eight-page statement finalizing several key aspects of a framework for reforming the international tax system.

The proposals include raising the top corporate income tax rate to 25.8% and tightening the generic interest deduction limitation by reducing the deduction percentage from 30% to 20% of the EBITDA for tax purposes.

Among other things, the possibilities for setting off holding company losses have been limited and the permanent establishment concept has been expanded for the purposes of withholding tax on interest and royalties.

Throughout the world, a transition is currently taking place from interbank offered rates (IBORs) to alternative benchmarks. Per January 1, 2022, LIBOR (London Interbank Offered Rate) - a reference point used globally for variable interest rates charged on financial products - is no longer published for most currencies (LIBOR rates were published for all major currencies, such as USD, EUR, GBP, JPY and CHF).