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  • Africa Relief Measures

Africa Relief Measures

Below is a summary of the key tax relief measure in place in various African countries.

Please note:

  • The South African measures are not included hereunder as they have been posted on the BDO COVID-19 Hub on our website
  • This is not a complete list of the countries, or of all the measures announced
  • More details (where available), can be obtained from our Africa Desk
  • This summary has been produced from information on the OECD and IBFD websites

 

DATE ANNOUNCED

SUMMARY OF SOME OF THE TAX RELIEF ANNOUNCED

 

African Union

30 April

The commencement of trade through the African Continental Free Trade Area (AfCFTA), which was scheduled to start on 1 July 2020, has been postponed due to the prevailing circumstances caused by the COVID-19 pandemic and no new date has been communicated at this point.

 

African Tax Administration Forum

8 April 2020

ATAF published a Suggested COVID-19 Measures for Revenue Authorities guide in order to curb the impact of the pandemic on the ability to raise tax revenue for African jurisdictions.

 

Algeria

20 March 2020

The Directorate General of Taxes (Direction Générale des Impôts, DGI) informed all taxpayers that the filing of tax returns and the payment of taxes and duties are postponed, and without application of penalties.

7 April 2020

The measures are summarized as follows: Deferral of tax returns: Taxpayers under the IFU declaration and payment of Personal income taxes for the first quarter of 2020: There is an extension of the submission period for the quarterly declaration (Declaration No G50) for personal income taxes (January-February-March 2020), until 20 May 2020.

12 May 2020

On 3 May 2020, the government presented measures in the draft supplementary finance bill (Loi de finance complémentaire, LFC) for the current financial year.
The draft LFC for 2020 falls within the framework of the implementation of the government's action programme and the commitments made by the public authorities in terms of lightening and simplifying procedures in order to improve business investments, to develop start-ups and to combat the COVID-19 pandemic economic issues.
The draft LFC provides the following measures:

  • temporary exemption from VAT and customs duties for pharmaceuticals and medical devices and equipment used in the fight against the COVID-19 pandemic;
  • increase in the withholding tax rate from 24% to 30% for foreign companies operating under contracts for the provision of services in Algeria;
  • exemption from customs duties and VAT for a period of 2 years renewable for components purchased locally by subcontractors in the mechanical, electrical and electronic industries and spare parts, and creation of a preferential regime for assembly activities;
  • cancellation of the preferential regime for the import of SKD/CKD lots for vehicle assembly and authorization to import new tourist vehicles by car dealers;
  • increase in the reduction in the operating budget from 30 to 50%. This reduction includes expenses by the State and all its institutions;
  • strengthening of the purchasing power of households through the renewal of the 50% reduction in individual and corporate income tax, for the benefit of income earned in the southern regions;
  • income tax exemption on revenues less than or equal to DZD 30,000 as from 1 June 2020;
  • revaluation of the guaranteed minimum wage from 1 June 2020 of DZD 2,000 to reach DZD 20,000;
  • abolition of the controlled declaration system for the liberal professions; and
  • adoption of the proposals emanating from the Ministry of Industry and Mines relating to the revival of the industrial sector.

In addition, the government decided to revise Investment Rule 49/51 with the exception of the strategic sectors and the buying and selling of products.

19 May 2020

The Algerian Tax Authority (Direction générale des Impôts) has announced the follwing measures

  • extended the deadlines for monthly tax returns (Declaration No. G50) related to the months of February to May 2020 to 21 June 2020. This measure applies to all corporate taxpayers except those under the administration of the Large Taxpayer Directorate. It applies also to individual taxpayers (business income and income from independent professional activities) which are under the standard tax regime.
  • extended the payment deadline for the first 2020 prepayment for corporate income tax and individual income tax purposes (business income) until 21 June 2020.
  • for taxpayers under the special lump sum tax regime (Impôt Forfaitaire Unique), the tax authority extended the income tax return for the first quarter of 2020 (Declaration No. G50 ter) also until 21 June 2020.

All these measures were adopted through a circular published on 15 May 2020.

 

Angola

9 April 2020

The measures also cover the payment of the urban property tax (IPU), until October this year. Exempt from paying Value Added Tax on goods imported for humanitarian aid and donations. 12-month tax credit to companies on the value of VAT payable on the import of capital goods and certain raw materials. Deferral of the payment of the Social Security Contribution (contribution of 8% of the total payroll) for the 2nd Quarter of 2020, for payment in six monthly instalments, from July to December 2020.

6 May 2020

The government has approved various economic measures aimed at providing relief in the fight against COVID-19 pandemic, as follows:

  • a special regime on the importation of foodstuffs, medicines and other essential goods. Under this regime, a temporary exemption is granted in respect of the import taxes on the specified items;
  • extension of the final filing deadline for Group A and Group B taxpayers, until 30 June and 29 May 2020, respectively. Normally, the filing deadlines are in May and April for Group A and Group B taxpayers, respectively;
  • a tax credit for companies on the VAT payable on the importation of capital goods and raw materials that are used for the production of goods that fall under the "basic basket" ("cesta básica") such as milk, rice, flour, and other items such as detergents, disposable diapers, cement, among others, that are set out under Presidential Decree 23/19, of 14 January 2019. The tax credit will be availed for a period of 12 months;
  • deferral of the payment of the employee social security contribution (which responsibility lies with the employer, at the rate of 8% of the employee's salary) regarding the 2nd trimester of 2020. The payment can be made in six monthly instalments during the months of July to December 2020, without any interest payments; and
  • private sector employers are required to pay the employee their salary plus the social security contribution (3% of the employee's salary) in April, May and June 2020. This measure aims to benefit the family income derived from salaries.

The above measures were issued through Presidential Decree 98/20 of 9 April 2020.

 

Burkina Faso

14 April 2020

The following measures are applicable from 1 April 2020 to 30 June 2020: remission of penalties and fines due; suspension of tax audit except for proven cases of fraud; exemption from synthetic tax.

 

 

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