We are pleased to present the March issue of SKP Global Updates – our newsletter that covers employment, payroll, Goods and Services Tax (GST)/Value Added Tax (VAT) and corporate tax related developments globally.

The key highlights of this issue include the Budget highlights of Ghana and South Africa, highlights of the Canadian Federal Budget, the Universal Paid Leave Amendment Act of 2016 in Mexico, H-1B Petitions for Fiscal Year 2018 in the US, revision in the trade control and import/export procedures in Japan, new employment changes in New Zealand and the Singapore Budget highlights.

Africa

Gabon

Changes in the implementation of National Solidarity Sales Tax (CSS)

The changes made with respect to the implementation of the National Solidarity Sales Tax (contribution spéciale de solidarité, CSS) under the Finance Act, 2017 are as follows:

  • Change in entry into force of CSS from 1 March 2017 to 15 March 2017.
  • Under corporate income tax, the CSS may be treated as a deductible expense subject to confirmation by an amendment to the enacted Finance Act, 2017.
  • The CSS and Value Added Tax (VAT) will apply on the invoice amount before tax.

Ghana

Ghana Budget 2017 highlights

Recently, the Minister of Finance of Ghana presented the Budget for 2017 on 2 March 2017. The key highlights of the same are summarised below:

Capital Gains Tax (CGT)

  • Gains that are realised from the sale of securities listed on the Ghana Stock Exchange or securities held publically that are approved by the Securities and Exchange Commission will be exempt from CGT.

VAT

  • The implication of VAT has been abolished for:
    • Financial service transactions;
    • Importation of selected medicines that are not produced in Ghana; and
    • Purchase of domestic airline tickets.
  • As per the Budget 2017, the VAT rate for traders will reduce from 17.5% to a flat rate of 3%.

Tax incentives

  • Budget 2017 includes new tax incentives for businesses that hire young graduates.
  • The Budget proposes to initiate steps to remove import duties on raw materials and machinery for production within the context of the ECOWAS (Economic Community of West Africa States) Common External Tariff (CET) Protocol. For more information, click here.

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