We are pleased to present the October 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 Nigerian Income Declaration Scheme, British Columbia budget updates 2017, key highlights of the Dubai VAT law, and reduced VAT rates in Switzerland.

Africa

Nigeria

Voluntary Assets and Income Declaration Scheme (VAIDS)

Implementation of VAIDS has commenced from 1 July 2017 and will continue through until 31 March 2018. The scheme is designed to encourage voluntary disclosure of previously undisclosed assets/income and paying for the outstanding tax liabilities. The interest and penalties shall be waived off for taxpayers participating in the scheme and making an honest declaration of previously undisclosed income and assets, and will be immune from prosecution and exempted from tax audits for the periods covered. For more information, click here.

Kenya

Income Tax treaty between India and Kenya

The Income Tax Treaty (2016) between India and Kenya entered into force from 1 January 2018 for withholding tax matters and retrospectively from1 January 2017 for other tax matters in Kenya. In India, it shall be applicable from 1 April 2018. From these dates, the new treaty generally replaces the India-Kenya Income Tax Treaty (1985).

South Africa

Proposed repeal of foreign employment income tax exemption

South Africa's National Treasury has suggested certain changes to its original proposal to repeal the foreign employment income tax exemption for resident individuals. It would prevent the exemption from being repealed in its entirety and defer the change until 1 March 2020.

Zambia

Highlights of the draft Budget 2018

The Zambian Ministry of Finance presented the draft Budget for the fiscal year 2018 on 29 September 2017. A summary of the proposed measures is given below:

Direct taxation

  • Proposal to redefine the term "management or consultancy fee".
  • Proposal to redefine the term "residence" for corporate tax purposes by replacing the reference to "central management and control" by "place of effective management". In other words, a company will be deemed as a resident in Zambia if it is incorporated/formed as per the laws of Zambia or it has its place of effective management in Zambia.
  • Proposal to introduce a requirement for mandatory disclosure of all related-party transactions under transfer pricing.
  • Proposal to discontinue the deductible contribution to approved pension of ZMW 3,060 under personal taxation.
  • Proposal to change the due date for payment of withholding taxes from the 10th to the 14th day of the month following that in which the transaction is made.

Indirect taxes

  • Proposal to change the due date for submission of Value added Tax (VAT) returns from the 16th to the 18th day of the month following that in which the transaction is made.

For more information, click here.

To view the full article please click here.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.