March 2022 / Focus Africa

March 16 2022

Rwanda Plans to Introduce VAT on Digital Services and Products

Rwanda plans to introduce value added tax (VAT) on the supply of digital services and products to Rwandan residents by non-resident suppliers such as Netflix and Amazon. According to the Rwanda Revenue Authority (RRA), levying VAT on the cross-border supply of digital services and products is in line with the destination principle of VAT, dictating that VAT must be paid in the country where consumption of the service or product takes place.

The RRA has since engaged the African Tax Administration Forum (ATAF) and other international organizations to undertake an impact assessment of the proposed tax on revenue and the digital services sector.

This information was shared by the Deputy Commissioner General (DCG) of the RRA, Jean Louis Kaliningondo, in his interview on 11 March 2022 with the local daily, The New Times.

March 18 2022

South African Tax Authority Issues Guide for Employers in Respect of Allowances

The South African Revenue Service (SARS) has issued a guide for employers in respect of allowances. The purpose of this guide is to assist employers in understanding their obligations relating to allowances paid or payable to their employees. The guide explains the methods to be applied by the employers in respect of allowances paid or payable to employees and includes the legislative requirements as well as examples.

The guide deals, amongst others, with the following:

  • subsistence allowance;
  • amounts deemed to be expended;
  • employer borne expenses;
  • employees' tax;
  • travel allowance;
  • vehicle let to the employer;
  • travel allowance reimbursement;
  • allowances to a holder of a public office; and
  • portion of salary deemed to be a public office allowance.
March 31 2022

Africa in Review by the Numbers (March 2022)

$40 million Five-year fund launched by PepsiCo in South Africa to boost job opportunities and increase local procurement through shared value solutions that will enhance sustainable food system. (Food Business Africa) 51% Stake in Jubilee General Insurance's Burundi subsidiary acquired by global insurer Allianz SE. The sale is part of the Kenyan parent firm's  agreement to sell majority stakes in its general insurance subsidiaries across five markets. (Business Daily) 558 Tour operators in Tanzania voted No to a proposal to build a cable car on Mount Kilimanjaro, citing environmental, economic and employment concerns over the project, which is still at a conceptual stage. (The Citizen)

$200 million Credit approved by the World Bank from the International Development Association to boost Cameroon’s agricultural production. This new project seeks to strengthen irrigation services in the country. (Food Business Africa) 120 MWp Solar photovoltaic plant to be constructed in Gabon by Solen Energy to help solve the problem of load shedding. The facility will be commissioned in two phases for the public power company (Africa Energy Portal) 95 New buses expected in Tanzania this year to help reduce passenger congestion at the BRT terminals. This brings the number of buses operating in the first phase of BRT project to 305. (The Citizen)

$2.5 billion Dangote fertiliser plant commissioned in Nigeria to help boost production of agricultural products. The plant is projected to produce 3 million metric tonnes per year and shield the West African country from food shortages that may arise from the Russian-Ukraine war. (The Guardian) 87 MW Independent power producer located in Kenya has been acquired by A.P. Moller Capital to enable the fund manager to participate in the country’s energy transition efforts. This will be the second power plant owned by the company, resulting in a combined capacity of 140 MW. (CEO Business Africa) 8 Additional African startups added to the Y Combinator W22 Batch, bringing the total number to 23. This is the largest cohort of African participants, up from 15 in the S21 group, which was itself a record. (Tech Build Africa)

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