Accounting, Tax & Legal Services

  1. Corporate tax in Mozambique is imposed at a standard rate of 32%. All legal entities must register for tax with the Mozambique Tax Authority and file annual returns by the 31st of May following the end of the tax year;
  2. Capital gains in Mozambique is regarded as ordinary income and is taxed at the normal corporate tax rate of 32%;
  3. A 10% withholding tax is applicable to payments made to non-resident companies for services including i) construction ii) transport and telecommunication iii) electricity distribution;
  4. The Value Added Tax (VAT) is levied at a standard rate of 17%. Certain corporate services including banking, health and education are however exempted from VAT. Companies must register for VAT and submit monthly returns;
  5. A 20% withholding tax is applicable on i) dividends ii) interests and iii) royalties paid to both resident and non-resident companies. The rate may however be reduced for non-resident companies where a tax treaty is applicable;
  6. Employers in Mozambique must submit a monthly social security contribution of 4% of their employees’ gross salary to the National Institute of Social Security (INSS);
  7. Business tax losses in Mozambique can be carried forward for up to 5 years. Carryback of losses is however not allowed
  8. A 20% withholding tax is applicable on technical services fees paid to non-resident company unless reduced where a tax treaty applies;
  9. Other taxes in Mozambique include i) real property tax of 0.4% for residences and 0.7% for offices ii) 0.4% stamp duty applicable of the transfer of shares iii) 2% real property transfer tax;
  10. The Republic of Mozambique is signatory to 9 double tax treaties with different countries including South Africa, Mauritius, Portugal, United Arab Emirates, among others;
  1. Corporate tax in Angola is levied at a rate of 35% on company’s net profits. This rate is however reduced to i) 20% for agricultural, forestry and livestock activities and ii) 30% for real estate activities. Annual returns must be filed before 31st May every year, failure to which a penalty equal to double the tax payable is imposed;
  2. The standard VAT rate levied on all goods and services in Angola is 10%. Filing of VAT is done monthly and payment is due by the last business day of the following month;
  3. Capital gains in Angola are taxed as business income and therefore subject to corporate tax;
  4. A company’s losses are allowed a rollover relief of three years. However, carry back of losses is prohibited;
  5. Capital duty is paid on initial capital of a company at the rate of 0.5%. Additional stamp dutis are levied at 1% on monthly turnover of a company;
  6. Employers must remit social security contributions to the authorities on all salaries at the rate of 8%. There is no payroll tax;
  7. Non-resident companies in Angola are subject to i) 10% withholding tax on dividends, ii) 15% withholding tax on interest and iii) 10% withholding tax on royalties. There is no withholding tax on branch remittances;
  8. The rate of tax payable on transfer of land or buildings is 10%, paid by the purchaser;
  9. Angola has not yet signed any tax treaty to eliminate double international taxation;
  1. Both resident and non-resident corporations are subject to corporate tax of 30% on net profits;
  2. Registering a Nigeria LLC is liable to pay a VAT rate of 5% on goods unless incorporated within a free zone, in which case the VAT rate is reduced to 0% indefinitely. In accordance with the Nigerian Investment Promotional Act, every Nigerian company will be required to register for VAT.
  3. Nigeria is in the process of increasing its network of double taxation treaties, including new agreements with Mauritius and Sweden awaiting approval;
  4. Nigeria business setup boasts only 11 double taxation treaties, none of which materially reduce local withholding tax. The Nigeria-UK double tax agreement reduces the withholding rate to 5% on income repatriated to the UK;
  5. Under Nigerian tax law, companies are liable to pay withholding tax on the following types of payment made to a non-resident: interest, royalties, contract and other service fees, lease rentals (for movable property), and technical fees. The rate of withholding is 10% of the gross payment;
  6. A Nigeria LLC can only enjoy tax exemption if incorporated within an Export Processing Zone. If in an EPZ, an export-oriented company is indefinitely exempted from all local, state and federal taxes;
  7. We can help you with i) documenting and implementing accounting procedures ii) implementing financial accounting software iii) preparation of financial accounting records and iv) preparing forecasts, budgets, and sensitivity analysis to better manage financial obligations and ease the process of reporting to the Nigeria accounting authorities;
  1. A Kenya company formation is liable to pay a VAT rate of 16% on goods unless incorporated within an EPZ, in which case the VAT rate is reduced to 0% indefinitely;
  2. Both resident and non-resident corporations are subject to income tax of 30% on taxable income;
  3. The taxable income for a Kenya business setup is calculated on the audited accounting profit, as adjusted for tax purposes, for the accounting year ending in the preceding calendar year;
  4. Under corporate tax law, Kenya company formation is liable to pay withholding tax on the following types of payment made to a non-resident: interest, royalties, contract and other service fees, lease rentals (for movable property) and technical fees. The rates of withholding are 10%, 15% or 20% of the gross payment;
  5. Kenya business incorporation allows tax exemptions if setup within an EPZ. If in an EPZ, the Kenya business setup is tax exempt for the first 10 years, while paying a reduced corporate tax rate of 25% for every year after;
  1. The corporate income tax (CIT) rate for companies (other than mining companies with special mining leases, but including branches) continues unchanged at 25.75%. This rate includes a base rate of 25% plus a 3% AIDS levy.
  2. There are no provincial or local income taxes payable in Zimbabwe.
  3. Zimbabwe presently operates on a source-based tax system. This means that income from a source within, or deemed to be within, Zimbabwe will be subject to tax in Zimbabwe unless a specific exemption is available. The specific circumstances of a transaction should always be considered to determine whether the transaction gives rise to taxation in Zimbabwe.
  4. Income earned by foreign companies from a source within, or deemed to be within, Zimbabwe will be subject to tax in Zimbabwe. In such a case, one should determine whether the foreign entity is obligated to register a local entity. A company is required to register a branch if it has established a place of business or is otherwise considered to be trading in Zimbabwe. A local subsidiary company may be registered as an alternative to a branch operation.
  5. Non-residents who do not have a place of business in Zimbabwe may, however, be subject to withholding tax (WHT).
  6. WHTs are applicable where dividends and royalties or similar payments are declared or distributed to non-Zimbabwean residents (and Zimbabwean residents in some instances).
  7. Dividends declared by a Zimbabwean company to a non-resident holding company will be subject to non-resident shareholders tax (NRST), a WHT. NRST is payable at a rate of 15% unless treaty relief is available. Dividends from companies listed on the Zimbabwe Stock Exchange have a rate of 10%. NRST is payable within ten days after declaration of the dividend.
  8. WHT of 15%, calculated on the gross amount of interest, is payable on interest accruing to any person resident in Zimbabwe. This applies to interest arising from a registered banking institution or unit trust scheme. The tax withheld is a final tax, and the financial institution is responsible to withhold the tax. Non-resident investors, however, are currently exempt from any WHT on interest.
  9. WHT on royalties are payable once a Zimbabwean company pays a royalty to a non-Zimbabwean resident. WHT is levied at a rate of 15% and is payable within ten days of the date of payment. The WHT falls due upon accrual (i.e. when payable), and actual payment is not a factor. A royalty includes payment for the use or right to use any patent or design, trademark, copyright, model, pattern, plan, formula or process, or any other property or right of a similar nature. It also includes the imparting of any scientific, technical, industrial, or commercial knowledge or information for use in Zimbabwe. The nature of the amount payable should therefore be carefully considered in order to determine whether the relevant amount represents a royalty.
  1. All companies in Zambia are subject to a standard corporate income tax rate of 35%;
  2. Local mining companies however are subject to i) a reduced corporate tax rate of 30% and ii) a variable profit tax of up to 15%;
  3. The VAT is levied at a standard rate of 16% on the sales of goods and services.
  4. A 15% withholding tax is applicable on i) interests ii) dividends iii) royalties and iv) technical services fees paid to both resident and non-resident entities, unless reduced under a tax treaty
  5. Branches are subject to an additional 15% branch remittance tax on income remitted to their parent company.
  6. Companies engaged in manufacture of non-traditional products and chemical fertilisers are subject to corporate tax rate of 15%
  7. A reduced corporate income tax rate of 10% is applicable to Zambian companies engaged in farming and other agricultural activities
  8. Sales and transfers of land and buildings are subject to a property tax of 5%.
  9. Businesses in Zambia must also pay Social Security and unemployment insurance contributions of 9% of gross salaries
  10. Zambian companies can carry forward their losses for up to 10 years
  11. All companies in Zambia are obliged to file tax returns by the 30th of June every year failure to which a penalty of US$80 per month is chargeable
  12. Value Added Tax (VAT) filings are to be submitted monthly to the Zambia Revenue Authority
  13. The Republic of Zambia has signed 17 double tax treaties with different countries including Italy, Ireland, France, UK and Sweden among other jurisdictions
  1. Resident companies not registered in SEZ suffer a corporate tax rate of 30% on worldwide income
  2. The standard VAT rate on goods is 18% and must be filed on a monthly basis. This excludes export goods, which are 100% VAT exempt
  3. Tax returns must be filed within six months from the end of the tax year
  4. Withholding taxes of up to 15% are levied on i) dividends ii) interests and iii) royalties
  5. A company with tax losses for three consecutive years suffers an alternative minimum tax at 0.3% on turnover
  6. Companies in Special Economic Zones are exempt from income tax and withholding tax on dividends, interest and rent for the first 10 years
  7. Foreign branches pay additional remittance tax of 10% on net profits
  8. Resident companies face a reduced corporate tax rate of 25% for three years if i) they issue at least 30% of share capital to the Tanzanian public and ii) are listed on Tanzania stock exchange;
  9. Import customs duty may be charged up to 25% depending on the nature of the good. Raw materials and production-related machinery are exempt from customs duty
  10. For local staff, foreign employers must i) contribute an extra 10% to the employee’s social security and ii) pay a Skills and Development Levy of 6% on all cash payments to employees and iii) pay workers’ compensation insurance or a private insurance scheme;
  11. Tanzania’s tax on capital gains from business/investment income is 30%. However, capital gains from disposal of immovable assets face 10% tax rate
  12. Personal income tax is levied up to 30%
  13. Tanzania has double taxation and bilateral investment treaties with 23 different countries including Canada, Germany, Italy, The United Kingdom and Switzerland
  1. Corporate tax is levied in Uganda at a standard rate of 30%. Capital gains are included in annual income and will be taxed at 30%
  2. Resident companies with income of US$4,700 in the last 3 months must pay VAT monthly at the standard rate of 18%. Returns must be filed by 15th of every month
  3. Dividend payments and royalty payments to non-resident entities will be subject to 15% withholding tax
  4. Interest payments to both resident and non-resident entities is subject to 15% withholding tax. However, payments on government securities will be subject to tax at 20%
  5. All resident companies must contribute 10% of their employee’s monthly salary to the National Social Security Fund (NSSF)
  6. All resident companies can carry forward their business losses indefinitely
  7. Transfer of securities and immovable property in Uganda will be subject to a transfer tax at 1%
  8. Stamp duty is levied at 0.5% during company incorporation and during the process of change in the share capital
  9. Resident companies must file their tax returns within 6 months after the end of the accounting year. A penalty of 2% is payable monthly in case of delays
  10. Uganda has signed DTAs with 9 countries including Denmark, India, Italy, South Africa and United Kingdom to reduce withholding tax on payments abroad
  1. The general corporate income tax rate in Rwanda is 30% and companies are required to file tax returns within 3 months after the end of the fiscal year
  2. Value Added Tax (VAT) is levied at a standard rate of 18% on consumable good and services
  3. Companies can carry forward business losses for the subsequent 5 fiscal years, however a carry-back is not permitted
  4. Withholding tax is imposed on dividends payable to both resident and non-resident entities at a standard rate of 15%, unless reduced by a tax Treaty
  5. All companies in Rwanda are subject to a withholding tax on interests and royalties at a flat rate of 15%, unless reduced by a tax treaty
  6. All employers must contribute 3% of their employee’s gross salary to the Rwanda social security fund
  7. Capital gains arising from the transfer of commercial real estate are taxed at a rate of 30%. Transfer of others assets are only subject to the standard corporate tax rate of 30%
  8. A 5% tax discount is applicable to companies engaged in exports if the company exports goods and services bringing more than US$5 million in tax benefits in a fiscal year
  9. Rwanda companies are subject to a 5% withholding tax on imports of goods and services for commercial usage
  10. Rwanda has concluded only 3 double tax avoidance treaties with Belgium, South Africa and Mauritius
  1. The standard corporate tax rate levied on all net profits derived from Botswana is 22%. The tax year is from 1st of July to 30th June and tax returns are filed quarterly. Failure to comply will attract a penalty of 1.5% interest per month
  2. Branches pay a standard corporate tax rate of 30% and manufacturing companies pay 15%. There is no branch remittance tax
  3. Withholding tax levied on interest, royalties and technical services fees paid to non-residents is at the rate of 15%. The withholding tax levied on dividends is 7.5% while rent is taxed at the rate of 5% and brokerage fees and commissions are charged withholding tax of 10%
  4. Capital gains tax is levied at variable rates up to 25%
  5. There is no payroll tax or capital duty tax in Botswana. Furthermore, the employer is not required to submit social security contributions for employee’s salary income
  6. The standard VAT rate levied on provision of goods and services in Botswana is 12%. Filing and payment is done every month. Tax on exports is zero rated
  7. Losses may be carried forward for five years
  8. Duty levied on transfer of immovable property and all property sales is 5% and a capital transfer tax of 12.5% is levied on transfer of assets.
  9. Botswana has signed double tax treaties on withholding tax rates with 12 countries including France, Russian Federation, Seychelles, South Africa, Sweden, Barbados, India, Mauritius, Mozambique, Zimbabwe, Namibia and the United Kingdom