ANGOLA: New Private Investment Law

On 30 September 2015, Presidential Decree No. 184/15 terminated the existence of the National Agency for Private Investment (Agência Nacional para o Investimento Privado, ANIP) and created the Agency for Investment Promotion and Exports of Angola (Agência para a Promoção do Investimento e Exportações de Angola, APIEX). The role of the new agency is to promote and attract new private domestic or foreign investments in Angola for the purpose of the economic development of the country.

Presidential Decree No. 181/15 provides the new national policy on Private Investments and introduces the functions to be performed by the new APIEX with effect from 30 September 2015.

Presidential Decree No. 182/15 introduces the principles applicable to private investment, the competence and rules of operation of APIEX created to support private investment, tax incentives, and the legal framework of private investment contracts.

The main tax incentives granted by Presidential Decree 182/15 include:

• investment costs are deductible for income tax purposes, but investors may increase the amount to be deducted by 50% of the actual cost. The increased amount of the investment costs incurred are to be spread over 3 fiscal years; and  
• special increased rates of amortization and accelerated depreciation of assets.

The new rules apply to investment projects commencing after the entry into force of the Presidential Decree on 30 September 2015. However, Presidential Decree 182/15 may apply to ongoing investment projects commencing prior to its entry into force, if the new rules provided are more beneficial for the investor.

Democratic Republic of Congo ("DRC"): New Hydrocarbon Law published

On 7 August 2015, the new hydrocarbon law was published under Law 15/012 in the Official Gazette and became effective from 1 August 2015. The new law abolished Ordinance Law 81-013 of 2 April 1981 (as amended).

The new law divided the territory of the DRC into four fiscal zones (A, B, C and D) based on geological and environmental criteria which will be fixed in a yet to be released executive regulation of the hydrocarbon law.

• An excess oil tax is levied at the rate of 50% irrespective of the exploitation zone.    
• A windfall tax is levied in the form of a super profit oil levy when the oil price exceeds the highest cap mentioned in the exploitation contract. The method of computation of the windfall tax is determined by the executive regulation and the contract.     
• An annual surface tax is charged based on the surface of the exploration or exploitation block. The tax is levied at the rates of USD 100 per square kilometre during the exploration phase and of USD 500 per square kilometre during the exploitation phase. 
• Capital gains from the transfer of exploration or exploitation rights are taxable  
• Tax is levied on the remuneration of expatriates working for oil companies
• Importation of equipment specifically used for oil operations are exempt from customs duties.

The new law does not include any fiscal stabilization clause.

Non-tax measures include:

• The National Oil Company (Société nationale d'hydrocarbures) must hold a minimum non-transferable participation of 20% in oil projects.    
• The oil company must commit to finance local communities' sustainable development and infrastructure projects. 
• The oil company must contribute on an annual basis to the training of civil servants working in the hydrocarbon sector, the exploration efforts, social actions, the functioning of the oil and gas data bank and the fees paid by the DRC to international organizations dealing with the oil sector. 
• The practice of gas flaring is strictly prohibited unless an authorization is granted by the Ministry in charge of hydrocarbon activities.
• Exploration and exploitation contracts already signed before the enactment of the law are valid until their expiration.

The executive regulation is expected to be published by decree within 6 months from the effective date of the new law.

GHANA: Value Added Tax ("VAT") on real estate developers

On 7 October 2015, the tax administration published on its website a clarification regarding the application of VAT by real estate developers, which confirmed that:

• the sale of immovable property by a real estate developer is taxable at a flat rate of 5% based on the value of the immovable property; and   
• all other taxable supplies/services rendered by real estate developers are taxable at the standard rate of 17.5%;    
• a "dwelling" is defined as any building, premises, structure or any place which is not used for commercial purposes and which is used predominantly for residential purposes; and 
• a "real estate developer" is defined as a commercial establishment engaged in the business of the construction and sale of immovable property.

MOZAMBIQUE: Public debt securities transfer tax introduced

On 2 October 2015, a tax applicable to sales and purchases of public debt securities traded through the Central Securities Depository (“CSD”) was gazetted through Ministerial Diploma No. 90/2015. The tax is levied at a rate of 0.2% and became effective on 3 October 2015.

NIGERIA: Public notice on payment of advance income tax on interim dividends published

A public notice was issued by the Federal Inland Revenue Service (“FIRS”) in October 2015 regarding the payment of tax on interim dividends, as provided for by section 43(6) of the Companies Income Tax Act, 2004 (“CITA”).

According to the notice, all companies (private and public) are reminded that they are required to pay Companies Income Tax (“CIT”) at 30% on the profits from which interim dividends are paid, prior to the payment of such dividend. The tax so paid is a deposit against the tax due from the company on the profits out of which the dividend is paid.

Non-compliance will attract relevant sanctions and penalties under the CITA. Any company that has declared an interim dividend this year and going forward is required to file a self-assessment return and pay the tax due on the profits immediately. FIRS is expected to carry out random compliance checks on all companies.

ZAMBIA: 2016 Budget – details

On 9 October 2015, the Budget for 2016 was presented to the National Assembly by the Minister of Finance. Details of the Budget, which unless otherwise indicated, will apply from 1 January 2016, and are summarized below:

• reducing the property transfer tax rate for transfer of property and shares from 10% to 5%. The property transfer tax on mining rates is to remain at 10%; 
• introducing a non-final withholding tax of 15% on management and consultancy fees paid to residents;
• extending the 10 year period for carry-forward of losses applicable to hydro and thermal electric power generation to wind and solar electric power generation. Currently, the 10 year loss carry forward period in the energy sector only applies to entities involved in the generation of power using hydro and thermal energy; 
• increasing the capital allowance on implements, machinery and plant for use in the generation of electric power from 25% to 50%;
• removing withholding tax on discount income on Government bonds, whilst retaining withholding tax on coupon income;
• removing VAT on non-life insurance and introducing a 3% levy on all insurance premiums;
• increasing the period for claiming input VAT in the electricity generation sector from 2 years to 4 years;    introducing requirements for use of fiscal cash registers in place of cash registers; and 
• changing legislation to provide for different due dates for manual and electronic submission tax returns.

Written by Celia Becker, Africa regulatory and business intelligence, executive, ENSafrica