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31 Mar 2025
BY Celia Becker

Africa tax in brief

BENIN, BURKINA FASO & SENEGAL: OECD Releases BEPS Action 14 Peer Review Reports

On 4 March 2025, the OECD released simplified peer review reports for ten countries, including Benin, Burkina Faso and Senegal, related to the implementation of the Base Erosion and Profit Shifting (BEPS) Action 14, Minimum Standard on effective dispute resolution mechanisms.

The simplified peer review process is an assessment for jurisdictions without a "meaningful mutual agreement procedure (MAP) experience". Notable highlights from the reports include the fact that Burkina Faso and Senegal have ratified the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS (MLI), bringing many of their tax treaties in line with Action 14 standards.

BENIN: VAT exemption conditions for foreign non-governmental organisations updated

The Director-General of Taxes (Direction Générale des Impôts, “DGI”), on behalf of the Ministry of Economy and Finance, has issued Circular No. 232 of 18 February 2025 which repeals and replaces Circular No. 1994 of 16 October 2024 and updates the terms and conditions for the application of, or for benefitting from, the value added tax (“VAT”) exemption granted to foreign non-governmental organizations (“NGOs”) and foundations or associations that have signed a headquarters agreement with Benin for their local operating and investment expenses.

In addition to the previous requirements, the benefit of VAT exemption for NGOs is conditional on obtaining prior authorisation for the sale without VAT or an authorisation of the retrocession of a VAT credit for goods and services to be consumed by foreign NGOs or associations. The authorisation for sales without VAT or confirmation of VAT credit retrocession is issued by the DGI within five working days.

In addition, the threshold amount for NGOs to be subject to the prior authorisation procedure was increased from the purchase value of not more than F.CFA500 000 to F.CFA 5 million. The authorization procedure does not apply to food purchases. In case NGOs are not subject to the prior authorisation procedure, they are required to:

• request their suppliers or service providers to provide a tax clearance certificate and a standardised invoice; and
• Use a payment method other than cash that explicitly identifies the NGO as a payee or client.

Prior to the new circular, NGOs making purchases of an amount less of not more than F.CFA5-million could make purchases directly upon presentation of the headquarters agreement to the supplier or service provider without any requirement. For purchases of hydrocarbons, NGOs must obtain prior authorisation to buy duty-free, regardless of the amount.

The tax administration reserves the right to check the duty-free purchases made at any time and to make the necessary corrections.

CôTE D’IVOIRE: Finance Law 2025 implemented

Following the presentation of the Finance Bill 2025 to the National Assembly on 3 December 2025, several of the proposed tax measures have been implemented with effect from 10 January 2025 as part of Finance Law 2025 (Law No. 2024-1109 of 18 December 2024).

GHANA: 2025 Budget Statement presented

On 11 March 2025, Ghana's Minister of Finance, Dr Cassiel Ato Forson, presented the 2025 Budget Statement and Economic Policy. The Budget outlines a series of tax policies and proposals aimed at restoring fiscal discipline, enhancing revenue mobilisation, and alleviating the economic burden on households and businesses. Significant proposed amendments include:

• Eliminating the 10% withholding tax on lottery winnings;
• Eliminating the 1.5% withholding tax on proceeds from the sale of unprocessed gold by small-scale miners;
• Reintegrating the Ghana Education Trust Fund Levy (GETFL) (2.5%) and National Health Insurance Levy (NHIL) (2.5%) into the VAT structure, reversing their standalone application that increased the effective VAT rate to 21.75%;
• Reversing the VAT flat rate scheme (VFRS) under which a registered retailer of taxable goods with an annual turnover of between GHS200 000 and GHS500 000 could charge VAT/NHIL and the COVID-19 Health Recovery Levy (COVID-19 levy) at a marginal rate of 4%;
• Raising the current VAT registration threshold (an annual turnover of GHS200 000) to exempt micro and small businesses from VAT collection;
• Abolishing VAT on motor vehicle insurance policies;
• Eliminating the COVID-19 levy of 1% on the supply of goods and services; and
• Eliminating the electronic transfer levy (e-levy) of 1% on electronic transactions.

MALAWI: 2025/2026 Budget Statement delivered

Malawi's Minister of Finance and Economic Affairs presented the 2025/2026 Budget Statement on 28 February 2025. Significant proposed tax measures, which will enter into force on 1 April once the Bil is approved by parliament and assented to by the President, include:

• Reducing the corporate income tax rate for non-resident companies with a permanent establishment in Malawi from 35% to 30%;
• Designating mega farms as a priority sector, allowing them to qualify for a 10-year tax holiday; and
• Removing the 16.5% VAT on bread, buns and confectioneries to support local bakeries.

MOZAMBIQUE:  VAT exemption on sugar, cooking oil and soap industries reintroduced

The Spokesman of the Council of Ministries has made an announcement on 25 February 2025, reintroducing the VAT exemption on the sugar, cooking oil and soap industries, as well as on the raw materials and machinery used in these industries until 31 December 2025. The proposed measures will be submitted to Parliament for final approval.

MAURITIUS: Lists of reportable and participating jurisdictions for automatic exchange of financial account information updated

The Mauritius Revenue Authority recently published updated lists of reportable and participating jurisdictions for the purpose of the automatic exchange of financial account information under the Common Reporting Standard Multilateral Competent Authority Agreement (CRS MCAA). The lists concern the relevant jurisdictions for the 2025 reporting year, in respect of 2024 reportable accounts.

The following jurisdictions have been added to the list of reportable jurisdictions: Algeria, Armenia, Benin, Bosnia and Herzegovina, Botswana, Burkina Faso, Cabo Verde, Cameroon, the Dominican Republic, El Salvador, Eswatini, Gabon, Guatemala, Honduras, Jordan, Madagascar, Mauritania, Mongolia, Namibia, North Macedonia, Papua New Guinea, Paraguay, the Philippines, Senegal, Serbia, Tunisia, Togo and Vietnam.

In the updated list of participating jurisdictions for the 2025 reporting period, Ecuador, Georgia, Jamaica, Kazakhstan, Moldova, and Ukraine have been added.

NAMIBIA: 2025/26 Budget Speech presented

Namibian Minister of Finance Ms. Ericah B. Shafudah, on 27 March 2025 presented the 2025/26 Budget Statement, aimed at supporting economic growth through broadening the tax base to improve revenue mobilisation and enhance the competitiveness of the tax system to attract investment. Significant proposed amendments (some of which have been alluded to previously) include:

Direct taxes

• Reducing the non-mining corporate income tax rate to 30% with effect from 1 January 2025 and 28% during the FY2026/27;
• Introducing a 30% limit on interest deductions and the capping of assessed losses carried forward with effect from 1 January 2026;
• Introducing a 10% dividend withholding tax with effect from 1 January 2026;
• Introducing an anti-avoidance provision to ensure that substance loans disguised as preference shares are deemed income and not tax-exempt;
• Postponing to FY2026/27 and FY2027/28 the adjustment of all tax brackets for inflation creep.

Indirect taxes

• Amending the schedule of zero-rated properties to include state acquired commercial properties;
• Finalising the VAT legislation on imported digital services to even the playing field with domestic service providers.

Tax administration

• Introducing an e-invoicing system for VAT-registered persons, to be rolled out in April 2026;
• Introducing the requisite legislation for a dedicated Tax Court, which is at an advanced stage; and
• Extending the tax amnesty program, under which interest and penalties due will be fully written off if outstanding tax amounts are settled, until 31 October 2026.

NIGERIA: Tax Reform Bills adopted by House of Representatives

The House of Representatives (the lower chamber of the National Assembly) has approved and adopted the recommendations of its Committee on Finance, as embodied in the Tax Reform Bills. The Bills, which are expected to undergo further legislative scrutiny before the Senate (the upper house of the National Assembly), before passage into law, include the following amendments:

Corporate income tax

• Retaining the corporate income tax rate of 30% for all companies with the exclusion of small businesses;
• Restricting the President's power to exempt companies from income tax to now require National Assembly approval;
• Requiring companies enjoying priority sector incentives to obtain a certificate of acceptance to claim capital allowances;
• Exempting companies in free trade zones that export at least 75% of their goods and services from the minimum tax and enabling them to claim incentives under specific conditions.

Indirect taxes

• Retaining the VAT rate at 7.5%, rejecting the previously proposed increase to 12.5% set for 2026;
• Introducing a new VAT revenue-sharing formula among the federal, state, and local governments: 10% to the federal government, 55% to state governments (including the Federal Capital Territory) with allocations based on 20% population and 30% consumption, rather than where returns are filed; and 35% to local governments;
• Deleting the previously proposed 5% excise duty on telecom services.

Tax Administration

• Extending the timeline for issuing tax identification numbers (TINs) from two to five working days and mandating officials to provide reasons if they fail to meet the deadline; and
• Requiring companies ceasing operations to now file tax returns within three months.

NIGERIA: Pilot phase of e-invoicing system to be implemented

The Federal Inland Revenue Service (“FIRS”) has engaged large taxpayer groups in a stakeholder engagement on 18 February 2025 in preparation for the pilot phase of the Merchant Buyer Solution (e-invoicing system), set to be launched in July 2025. The system is aimed at facilitating compliance and feeding the right data set into the system, leading to seamless tax filing and improved compliance.

The FIRS plans to pilot the system with selected large taxpayers, using the output from this phase to refine the system for wider implementation, ensuring it is responsive to the needs of taxpayers across diverse sectors.

RWANDA: Tax Bills 2025 approved by Parliament

On 19 March 2025, Parliament has approved the following draft tax laws to implement the tax reforms recently approved by the cabinet:

• the draft law amending the Income Tax Law;
• the draft law amending the Value Added Tax Law;
• the draft law establishing excise duty;
• the draft law establishing the tourism tax on accommodation;
• the draft law establishing the environmental levy on imported goods packaged in plastic materials;
• the draft law establishing the levy on petrol and gas oil for the establishment of strategic petroleum products reserves; and
• the draft law establishing the levy on petrol, gas oil and motor vehicles for road maintenance.

The laws will take effect upon assent by the President.

SEYCHELLES: English synthesized text of Guernsey tax treaty published

The government of Guernsey recently published the English synthesized text of the Guernsey - Seychelles Income Tax Treaty (2014), displaying the modifications made to the treaty by the Multilateral Instrument (“MLI”). The document was prepared in consultation between the competent authorities of Guernsey and Seychelles and represents their shared understanding of the modifications made to the treaty by the MLI.

Unless stated otherwise in the synthesized text, the provisions of the MLI will generally have effect with respect to the Guernsey - Seychelles Income Tax Treaty in Guernsey and Seychelles:

• with respect to taxes withheld at source on amounts paid or credited to non-residents, where the event giving rise to such taxes occurs on or after 1 January 2023; and
• with respect to all other taxes, for taxes levied with respect to taxable periods beginning on or after 1 October 2022.

UGANDA: New basis for payment of 30% of tax assessed in matters before Tax Appeals Tribunal introduced

On 11 March 2025, the Uganda Revenue Authority (“URA”) has issued a public notice introducing the new basis for the payment of 30% of the tax assessed in respect of matters before the Tax Appeals Tribunal (“TAT”).

Section 15(1) of the TAT Act provides that a taxpayer who has lodged a notice of objection to an assessment shall, pending final resolution of the objection, pay 30% of the tax assessed or that part of the tax assessed not in dispute, whichever is greater.

Under the new rule, a taxpayer liable to pay 30% of tax assessed is required to generate a payment registration number (PRN) by selecting “30% TAT payment” under the basis of payment on the payment registration page of the URA web portal. In addition, the new basis for payment includes the following conditions:

• Payment made under this option cannot be used to settle any outstanding tax liabilities until the TAT resolves the matter;
• After resolution, the taxpayer may either apply for a 30% refund of the tax paid or use the payment to offset other tax liabilities, based on the case outcome; and
• If the undisputed tax amount exceeds 30% of the tax paid, further implications may arise.

Previously, taxpayers paid 30% of the assessed tax manually into the URA account and provided a receipt to the TAT.

ZAMBIA: National Pension Scheme Authority contribution ceiling updated

The National Pension Scheme Authority (“NAPSA”) on 7 January 2025 published a notice revising the monthly NAPSA contribution ceiling for both employers and employees from ZMW2 981.60 to ZMW3 416.40, with effect from January 2025.

Celia Becker

Africa Regulatory and Business Intelligence | Executive

cbecker@ENSafrica.com