Africa: Various tax related updates

New Developments

Nigeria: February 2015 Tax Calendar

PwC Nigeria

In this time of falling government revenue, there is a lot of focus on tax compliance by various tax authorities.

Nigeria: FIRS Retains Interest Rate For Tax Default At 15{780f53c297e2c008074d23b865a0ce0b35a4f08852d8e1e49466a5a902c4e44e} For 2015

PwC Nigeria

The law establishing the FIRS, the Federal Inland Revenue Service (Establishment) Act, prescribes interest rate for late or non payment of tax at CBN Monetary Policy Rate (MPR) plus a spread (additional rate) to be announced by the Finance Minister.

Nigeria: Non Resident Companies To File Full Tax Returns Effective From 2015 Tax Year

PwC Nigeria

The FIRS has issued a Public Notice informing all taxpayers, especially non resident companies carrying on business in Nigeria, to submit full income tax returns as required by law.

Nigeria: What Price Should An Oil Company Use To Determine Its Revenue For Tax Purposes?

PwC Nigeria

Generally the FIRS would seek to use the higher of the OSP and the RP for tax assessments.

South Africa: Effect Of Taking Professional Advice On Imposition Of Understatement Penalties And Interest

ENSafrica

The court came to the conclusion that the taxpayer’s reliance on the advice received was reasonable and therefore directed that the Commissioner should waive the section 89quat interest in full.

South Africa: When Interest Becomes A Dividend: Hybrid Debt Instruments

Cox Yeats

As of 1 April 2014 the Income Tax Act 58 of 1962 (the Act) was amended to regulate “hybrid debt instruments” more closely.

Mozambique: Mozambique’s Decree Law: Worth The Wait

Shearman & Sterling LLP

The much anticipated Decree Law for Offshore Areas 1 and 4 was published on 2 December 2014 (Decree Law No. 2/2014).

Zambia: Zambia Mining Tax Amendments

ENSafrica

These changes will not apply to the mining of industrial minerals such as lime, sand and gravel.