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We are excited to welcome you to this first edition of our NL-Africa Tax Desk newsletter. In 2020 African governments’ tax policies have been subject to a lot of changes impacted by the BEPS action points, the COVID-19 crisis and developments on the energy markets. Although the African continent is diverse, there are typical challenges in staying compliant with local tax obligations that MNEs and investors face when investing and developing business activities in Africa. Managing your business’ tax position in Africa is not a ‘one-off’ exercise and requires continuous monitoring of the latest tax developments. The aim of this newsletter is to give you an easy-to-read overview of these updates on the African tax landscape.

The policy statement, among other things, lays down the Dutch viewpoint on the concept of a fixed establishment and the VAT treatment of transactions between a head office and a fixed establishment.

Our memorandum with flowchart provides an up-to-date explanation of how the adjustment affects the recovery of VAT on staff benefits, promotional gifts and other gifts. We also explain the effect of the VAT adjustment for the private use of company cars.

We have briefly outlined the motions that were approved.

In a letter sent to the Lower House of Parliament on December 9, 2020 the government announced that the existing relief and recovery package for the economy and labor market  – which was announced in August and has applied since October 1, 2020 – would be amended and some elements expanded.

This Decree potentially provides a meaningful option to foreign entities that have not been able to otherwise obtain relief for Dutch dividend withholding tax through either a reduced treaty tax rate or an exemption.

On December 4, 2020 the Supreme Court rendered judgments in two important asset management cases.

With the end of the year less than a month away and the Christmas holidays fast approaching you are probably busy wrapping things up and setting goals for next year. This last FS Tax Newsletter for the year 2020 briefly summarizes the relevant tax developments of the last few months.

The gross monthly salaries that apply as of January 1, 2021 have been published.