Africa'S Tax Policy Gives Investors New Directions.

Due to unfamiliarity tax revenue Laws and regulations, especially those who do not know the latest developments, do not understand their development trend. China frequently suffers tax problems in non enterprises, often suffers from unknown tax revenue, malicious taxation, public blackmail, or astronomical huge tax fines, which brings great difficulties to investment and operation. Taxation and reducing tax evasion by multinational corporations are important ways to raise the huge amount of capital necessary for African countries to develop in the future.

In July 2015, multinational tax leaders such as South Africa and Botswana held talks to draw up a roadmap for tax collection and management and take necessary measures to combat tax evasion. African countries have also taken measures to strengthen tax collection and management. In 2015, Nigeria reviewed the oil and gas enterprises enjoying tax preferences, issued restrictive measures and launched tax assessment work, while seeking to substantially increase the tax compliance rate of enterprises.

　　 South Africa In its 2015/2016 budget, the government announced that it would strictly enforce the tax compliance review and intensify its efforts to combat tax evasion. Algeria also said in April 2015 that it would set up an emergency inter ministerial committee to formulate action plans to crack down on illegal imports and intensify anti smuggling efforts. Kenya has expanded the scope of consumption tax since April 2015, and the scope of consumption tax goods management system has been gradually expanded to more effectively expel smuggled goods in the market. Ethiopia said in February 2016 that it would introduce advanced electronic tax treatment systems to improve the efficiency of tax collection and administration.

To raise the tax base, Nigeria plans to substantially increase the number of taxpayers and individual taxpayers in 2016 to raise non oil tax revenues. Since 2016, Cameroon has implemented three new taxes, namely, electronic communications tax, cash financial transaction tax and industrial gas distribution tax. The Togo government plans to levy new taxes on motor vehicles and transshipment goods to make up for it. Funding gap And so on. However, although African countries are interested in raising the tax base to increase revenue, the possibility of substantially raising the tax base is not great in view of the policy objective of reducing poverty levels.

Despite more than 10 years of rapid growth, the single economic structure dominated by agriculture or mining in most African countries has not been fundamentally changed. The economy is still relatively fragile and the unemployment rate is high. It is urgent to attract foreign investment (especially manufacturing foreign capital) to achieve industrialization and create employment. At the same time, it needs to protect its own agriculture and develop its national economy. It is estimated that the import tax of the manufacturing industry of African countries, especially the agricultural products processing industry, and the import tax on required raw materials and equipment will tend to decrease, while the import tax on farm and animal products tends to increase.

For example, the Egyptian government promulgated the latest investment law amendment plan in July 2015, aiming at attracting foreign investment through a series of simplified procedures and incentive mechanisms. One of them is to reduce import tax on machinery and equipment. Congo (Jin) reduced corporate tax from 40% to 35% in 2015 to attract foreign investment. Rwanda said in January 2016 that it would lower the import tax on raw materials for leather goods, and increase the import tax on second-hand leather products from 35% to 70% in the past, and increased to 100% after July.

Nigeria plans to reduce the relatively high corporate income tax rate from 30% to around 20% in support of the development of SMEs. In Mozambique, an import surcharge of livestock and poultry products such as rice, sugar, beans, meat and eggs has been deliberate.

Since 2015, Nigeria has adopted a series of policies, such as rice import quotas, high surcharge tax and official purchase of foreign rice, to support the supply of local rice producers and processed rice. Garner stipulates in November 2015 that the newly established Garner wholly owned agricultural product enterprises can enjoy five years' tax exemption if they use local agricultural products as raw materials. After five years' tax exemption period, enterprises will enjoy different corporate tax rates according to their different regions.