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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).

For many years real estate has been an important asset class for investors. We regularly approached advise and assist clients with the (financial) structuring of investments in real estate. Tax is often leading in processes like this and the influence of the Dutch Financial Supervision Act (Wet op het financieel toezicht (FSA)) and the regulations promulgated thereunder on the structuring process are often underexposed or even forgotten.

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 important transfer pricing updates with Botswana and Namibia updating their transfer pricing (documentation) obligations and Togo joining the Inclusive Framework on BEPS. 

In our memorandum we address the most significant changes proposed for payroll taxes and social security contributions.