African countries intend to discontinue the granting of tax waivers and incentives to high-net-worth individuals (HNWIs) and multinationals.
The African Tax Administration Forum (ATAF) is developing a proposal to the African Union (AU) for an African minimum domestic tax. The minimum tax would aim to counteract revenue leakages and illicit financial flows out of Africa, resulting from granting tax waivers to certain companies that pay their taxes in other jurisdictions.
The proposal was announced by the Executive Secretary of the ATAF at the 7th ATAF General Assembly held from 31 October to 4 November 2022, in Lagos, Nigeria.