Rapid Growth Of Sino African Cooperation In Production Capacity

In recent years, China Africa capacity cooperation has increased rapidly.

By the end of 2014, China's stock of direct investment in Africa reached US $32 billion 400 million, and Sino African trade volume reached US $222 billion, which was 60 times and 22 times that of 2000. More than 3000 Chinese enterprises settled in Africa.

This will not only help the African countries to increase taxes and employment, but also promote the development of domestic related industries and the pfer of surplus productive capacity. It is of great significance to the pformation and upgrading of China's economy and the industrialization of Africa under the new normal background.

On the other hand, China faces many challenges in non enterprises, among which taxation is one of the most important challenges.

(1) Eastern Africa

In order to more effectively expel the smuggled goods in the market, Kenya, the most developed economy in eastern Africa, has expanded the scope of consumption tax since April 2015. The consumption tax goods management system has also expanded from the supermarkets and chain hotel consumers to producers, importers, distributors and retailers.

In August, Tanzania issued a new business license bill, which stipulates that any person or organization applying for or renewing business license must provide a tax payment certificate issued by the taxation department.

In September, Uganda announced that it would improve and introduce a double taxation agreement (DTT) to regulate the phenomenon of tax evasion and tax evasion (DTT was not used by multinational corporations to cover tax evasion).

In February 2016, Kenya pacted the tax collection procedures from the port of Mombasa to the final destination from the previous goods to the pshipment to avoid tax evasion.

In March, Kenya promulgated the "tax procedural act 2015", giving the Inland Revenue Department special powers to review, investigate and punish enterprises for tax evasion purposes (to impose a penalty of 20 thousand dollars or two times the amount of tax evasion, or to imprisonment for no more than 5 years, or two penalties to be implemented at the same time) to stop the violation.

Tax evasion through pfer pricing.

In order to reverse the slow and declining trend of export market recovery and growth, Uganda launched a new national export development strategy in July 2015 to reduce corporate taxes on export oriented enterprises and exempt from corporate tax to export surplus enterprises such as India and South Africa, and implemented in 2015/2016 fiscal year to 2019/20 fiscal year.

In April 2016, in order to encourage local enterprises to increase their exports, Ethiopia issued a new tariff policy, which stipulates that local enterprises can import mechanical products without customs duties if they increase the added value of products such as coffee, honey and rapeseed, and realize the export earning, before the policy is oriented to foreign investors only.

Since January 2016, Rwanda has increased the import tax on second-hand leather products, such as shoes and belts, from 35% to 70%, and will increase to 100% after July. At the same time, the import tax on raw materials of leather products will be reduced to reduce the import of leather products and promote the development of the local leather industry.

In April 2015, the Ministry of mining industry of Kenya abolished the August 2013 mining law on the diatomite mining tax rate, which will be increased to 2% according to the sales tax of 5%.

In May, Uganda abolished the value-added tax and investment tax on oil, natural gas and mining industry. In August, it abolished the policy of restricting the export of mineral raw materials.

In November, the cost of mining gold prospectors was lowered from $20 thousand to $5 thousand in Burundi.

Unchanged).

The hotel industry.

In January 2015, Kenya issued the "tourism tax act 2015" to replace the previous tax regulations on catering training and tourism development. It stipulates that all tourism departments should collect a 2% tax to reduce the burden on investors in the hotel industry.

In September, Kenya passed the Special Economic Zone Act (including Mombasa, La Mu and Kisumu as a pilot area for special economic zones), and determined preferential policies for enterprises in special economic zones, including the exemption of value-added tax, the reduction of corporate income tax within 20 years, and so on, and plans to implement preferential policies for special economic zones in existing export processing zones to enhance the vitality of export processing zones.

In addition, unlike the East African countries that tend to reduce taxes, in May 2015, the Rwanda government introduced a new investment law to substantially reduce the preferential measures for investment tax relief. It stipulates that investors will no longer enjoy the treatment of exemption from VAT, nor will they enjoy income tax relief because of the large number of employees. Only the national strategic investment and large investment tax exemption and zero tariff will be retained.

(two) Southern Africa

In March 2015, the South African Tax Bureau issued a notice that the enterprise headquarters would not be subject to the rules of the controlled foreign companies in the South African income tax law. The pfer pricing rules were relatively loose, and provided a special tax relief for the corporate headquarters: the foreign dividends earned by the corporate headquarters were exempt from the corporate income tax, while the capital gains and losses for disposing foreign companies' shares could be ignored. The interest or royalties received by foreign nationals from the corporate headquarters were exempt from the withholding tax under certain circumstances.

In November, the South African Tax Bureau issued an explanatory memorandum on the amendment to the tax administration law of 2015, requiring the financial institutions of South Africa to report on accounts held or controlled by foreign resident taxpayers based on international tax standards.

Based on the consideration of the implementation of international tax information exchange in 2017, the 2016 budget of South Africa further clarified that taxpayers who voluntarily disclosed their overseas assets and incomes without voluntary exchange of information (the special plan for voluntary disclosure of information from October 1, 2016 to March 31, 2017) could receive additional tax relief.

In September 2015, the Ministry of trade and industry of South Africa raised tariffs on iron and steel products (including galvanized steel, aluminized steel and color steel), from tariff free to 10% import ad valorem duty, and stipulated a number of harsh conditions (such as requiring manufacturers not to raise product prices and reduce the prices of some products, etc.).

In Zambia, it was almost repeated. In June 2015, the cabinet approved the adoption of several bills in the mining area to determine the tax rate for open pit mining, 9%, 6% for underground mining and 30% for mining enterprises, and 35% for mining and processing enterprises, while the profit tax rate was not higher than 15%.

In addition, it is worth mentioning that in March 2016, President Obama said South Africa could continue to enjoy the treatment under the African Growth and Opportunity Act (Agoa).

Exports to the United States.

(three) West Africa

In Garner, in December 2015, the 2015 energy sector tax law was passed, and some taxes on petroleum products were re adjusted, which would lead to corresponding rise in oil prices.

If the oil price is estimated at 48 dollars per barrel, the new bill will increase the price of gasoline by 5.8% and the price of liquefied petroleum gas by 2.9%.

In April 2015, the Nigeria government increased the import tax on non essential items such as yachts, champagne, red wine and spirits by 50%.

In November, Garner stipulated that the newly established Garner wholly owned agricultural enterprises could enjoy five years' tax exemption if they used local agricultural products as raw materials. After five years of tax exemption, enterprises could enjoy different corporate tax rates according to their different regions.

For example, enterprises registered in Accra or Tama can enjoy a 20% discount, while other enterprises except the three northern provinces can enjoy a 10% discount.

(four) north and Central Africa

Since May 17, 2015, Egypt has stopped levying capital gains tax on foreign investors.

In July, Egypt promulgated the latest amendments to the investment law, adopted a series of simplified procedures and measures to attract foreign investment, including tax revenues such as reducing sales tax on machinery and equipment import duties, and exemption from the tax on trade items set up in the FTA according to the corresponding regulations.

In the same month, the Ministry of Finance and economic planning of Sultan announced tariff free treatment for agricultural means of production, including seeds.

In August, Egypt amended its personal income tax to reduce the maximum marginal tax rate from 25% to 22.5%, and abolished the tax rate of 5% of the rich (which refers to the annual income of more than 1 million Egyptian pounds).

Since April 1, 2015, the capital of Congo (Kinshasa) has begun to levy air cargo tax on all domestic and foreign freight, which is 1% of the freight cost.

Since 2016, more than 40 new tax policies have been put forward in Cameroon, among which the policies that have great impact on Chinese enterprises include: special tax on mobile phone operators and Internet service operators (2% of revenue for telecom enterprises), 5% import tax on all imported rice, and 20% import tax on imported cement.