Global Covid-19 African Governments' responses - Deloitte

06 July 2020

Global Covid-19 African Governments’ responsesLatest measures and updates

© 2020, Deloitte Tax & Consulting, SARL 2

About this document 3

Executive Summary 6

Covid19 tax related measures per jurisdiction 23

• Cameroon 24

• Chad 26

• Ghana 28

• Guinea 30

• Kenya 32

• Malawi 35

• Mozambique 38

• Namibia 39

• Nigeria 42

• Rwanda 45

• South Africa 47

• The Gambia 50

• Togo 51

• Uganda 53

• Zambia 55

• Zimbabwe 57

Contents


About this document


About this document

The world is dealing with COVID-19 Virus outbreak. Governments are actively taking actions and releasing measures to respond to the quick-moving situations.

This document includes specific measures collected through our global network, as of July 1st, 2020. The situation is evolving rapidly, and new measures are released on a daily basis.

The first version of this document includes released measures from 15 African countries. Governments are offering various types of financial and tax-related support to local business and individuals. The most commonly seen measures include:

Executive summary

Tax deferrals and suspensions Tax deferrals and/or tax breaks for small business owners to immediately increase support to SMEs

Grant funding Providing additional funds for businesses receiving government benefits or easing eligibility requirements

Specific industries support Financial support or tax-related support applicable to industries like health care, tourism, hospitality, airlines, restaurants, and etc.

Direct lending Offering direct lending to SMEs through existing government-affiliated banking enterprises

Employment and social protection measures Provides financial support and social security relief to employers and employees whose business being impacted

Loan Guarantees Private sector loan guarantees to help small businesses weather quarantine periods


About this documentAfrican countries covered

WesternSahara

Zimbabwe

EgyptLibyaAlgeria

Tunisia

Morocco

Kenya

Ethiopia

EritreaNorth Sudan

Niger

Mauritania

Mali

Nigeria Somalia

Chad

Central AfricanRepublic

Liberia

Sierra Leone

BurkinaGambia

Sao Tome & Principe

Equatorial Guinea

Djibouti

Senegal

Guinea Bissau

Canary Islands

Namibia

South Africa

Democratic Republic of the Congo

Angola

MadagascarBotswana

Zambia

Gabon

Swaziland

Lesotho

Malawi

Rwanda

BeninGhanaIvoryCoast

Guinea

Cameroon

Congo Republic

Comoros

Mozambique

Togo South Sudan

© 2020, Deloitte Tax & Consulting, SARL

BurundiTanzania

Uganda


Executive Summary


Executive SummaryCameroon

• Suspension for the second quarter of tax audits except suspicious tax behavior.

• Deferral of the deadline of deposit of the annual tax return without penalty.

• Suspension of the application of collection measures for companies directly affected by the crisis.

• Suspension of checks on the spot of social security contributions.

• Cancellation of penalties and deferred payment of social contributions on the months of April, May and June.

• Suspension of on-site audit of social security contributions.

• Social contributions: Suspension of the application of collection measures for companies directly affected by the crisis.

• Treasury support measures.

• Extension of the payment of the property tax.

• Banking sector – regulator measures.

• Exemptions of taxes and custom duties of Covid-19 material.

released package of supportive measures, as follows: Cameroon


Executive SummaryChad

• SMEs support scheme.

• Suspension of tax audits.

• Examination of applications from companies singularly affected by measures taken and facilities in terms of exemption of products (food and medical products).

• Medical equipment.

released package of supportive measures, as follows: Chad


Ghana

Executive Summary

Ghanareleased package of supportive measures, as follows:

Extension of due dates for filling of tax returns.

Waiver of penalties on principal tax liabilities.

Waiver of VAT on donations and grant of tax deductions for donations.

Waiver of taxes on withdrawals from third-tier pension funds.

Waiver of tax on personal emoluments of all frontline health workers.

Institution of an email filing and direct transfer payment system.


Executive SummaryGuinea

• Guinea provides deferral of taxes, tax exemption, industry specific tax deferral and exemption measures listed below:

• Deferral of tax and social security charges for the tourism and hotel sector.

• Deferral of tax charges for SMEs.

• Tax exemption for VSEs.

• Exemption from duties and taxes on health equipment against COVID19.

• Reduction of the delay for refunding the VAT credit.

released package of supportive measures, as follows: Guinea


Executive SummaryKenya

• The Tax Laws (Amendment) Act (“TLAA”) 2020, assented into law on 25 April 2020, sought to introduce a raft of changes to the Kenyan tax code, comprising, inter alia, the Income Tax Act (“ITA”), the Value Added Tax Act (“VATA”) 2013, Excise Duty Act (“EDA”) 2015 and the Tax Procedures Act (“TPA”) 2015. Other pieces of legislation amended via the TLAA 2020 include the Miscellaneous Fees and Levies Act (“MFLA”) 2016, Kenya Revenue Authority Act (“KRAA”) 1995 and the Retirement Benefits Act (“RBA”) 1997.

• The TLAA 2020, largely viewed as the Government of Kenya’s immediate response to the economic elements of the COVID-19 pandemic,contains a number of measures specifically targeted at cushioning taxpayers, corporates and individuals alike, from the worst economic impacts of the pandemic, as highlighted hereunder.

released package of supportive measures, as follows: Kenya


Executive SummaryMalawi

• Tax payments – interest/penalty waivers.

• Tax reliefs – rate reductions on:

• Customs and trade.

• Employment/personal tax.

• Loans, Grants and Banking on:

• Protection of Foreign Exchange Market.

• Increase in Loan Facilities for SMEs and Moratorium on Interest.

released package of supportive measures, as follows: Malawi

• Other measures:

• Continuity of Tobacco Trading Floors.

• Special Fund for Agricultural Produce.

• Reduction in Fuel Prices with Immediate Effect.

• Key Measures:

• A reduction in fees charged on electronic money transactions.• An increase in consumer protections.


Executive SummaryMozambique

• Customs measures.

• Income tax measures.

• Value-added tax (VAT) measures.

By Decree n. 23/2020, of April 27 Mozambique released package of supportive measures, as follows: Mozambique


Executive SummaryNamibia

• Tax payments – acceleration of refunds – VAT/GST.

• Job Support - Combined relief package announced by Social Security and Ministry of Finance.

• Loans, Grants and Banking - Ministry of Finance stimulus package – clarification on loan scheme.

released package of supportive measures, as follows:Namibia


Executive SummaryNigeria

• Extension of Moratorium on all CBN intervention facilities.

• forbearance on loan granted to certain businesses and households.

• N50 Billion targeted credit facility.

• Interest rate reduction.

• Extension on filing on Corporate tax returns and online filing solutions.

• Extension of deadline for filling personal tax returns.

• Extension of deadline for submission of annual audited financial statement for Dealing Member Firms (DMFs).

• Extension of deadline for filings of 2019 full year and first quarter 2020 financial reports.

• Extension pf AEOI-CRS Reporting Dateline for Financial Institutions.

• Waiver of interest and penalties on outstanding tax audit liabilities.

• Economic Stimulus Bill.

Following the advent of the COVID-19 pandemic and the collapse of oil price, the Nigerian government released various fiscal stimulus packages which contain a number of incentives targeted at private organizations, SMEs amongst others as follows:

Nigeria


Executive SummaryRwanda

• Liquidity support measures by the National Bank of Rwanda.

• Measures to encourage contactless payments.

Rwandareleased package of supportive measures, as follows:


Executive SummarySouth Africa

• Skills Development Levy Holiday.

• Fast tracking of VAT refunds.

• Postponement of the implementation of the Budget 2020 measures with respect to the limitation of interest deductions and carry forward of assessed losses.

• Expanded employment tax incentive (ETI) and Covid19 Temporary Employer Relief Scheme.

South Africaannounced COVID-19 tax relief measures, as follows:


Executive SummaryThe Gambia

• Extension of CIT filing deadlines.

• Suspension of field compliance enforcement activities.

• Suspension of field taxpayer audits.

The Gambia ‘s COVID-19 response in relation to taxation, as follows :


Executive SummaryTogo

• Provides SME support scheme.

• Provides industry specific tax deferral and personal income tax.

• Suspension of the calculation of late payment increases on social security contributions from April to July 2020 for employers.

• Reduction of late payment overdue of social security contributions for those who agree to pay their social debts.

Togoreleased package of supportive measures, as follows


Executive SummaryUganda

• Deferring tax payments due in March and April to May 2020 for taxpayers who had entered into payment plans with URA under a Memoranda of Understanding. Further extension was granted for payments that had been arranged to be made in May 2020 to June 2020 but only for businesses affected by COVID-19 restrictions.

• Extension of an amnesty to defer contributions from March 2020 for the next three months without accruing penalties for employers facing financial hardship who make an application to NSSF.

Ugandareleased package of supportive measures, as follows:


Executive SummaryZambia

• Suspension of export duty on copper ores and concentrates, on precious metals and on crocodile skin.

• Input VAT on imported spare parts now deductible and VAT zero-rating of medical supplies.

• Refund or remission of excise duty on ethyl alcohol.

• Suspension of import duty on selected medical supplies is suspended.

• Waiver of penalties and interest:

• The waivers will apply on all tax types applicable to any individual or businesses.

• The penalties and interest to be waived should relate to principal tax, entries or tax returns made between 1 April 2020 and 30 September 2020.

• Taxpayers are expected to pay all outstanding principal tax liabilities within the waiver period or such period as may be permitted through a TPA.

• Voluntary-disclosures of non-compliance.

Zambiareleased package of supportive measures, as follows:


Executive SummaryZimbabwe

• Extension of deadline to submit annual income tax returns.

• Expediting processing of VAT refunds.

• Use of online services for return submission and viewing statements of account.

• Use of email and telephone for communication purposes.

• Customs and excise duty measures relating to importation and exportation of Covid related goods.

Zimbabwereleased package of supportive measures, as follows:


Covid19 tax related measures per African jurisdiction


Cameroon

Measure Name Target Group Key Points/Summary

Suspension of the application of collection measures for companies directly affected by the crisis

Companies in the tourism sector (hotels, accommodation and travel agency) and the transport sector and related activities;

other companies not belonging to the preceding sectors which can prove that they are directly affected by the crisis

This measure allows the companies to which it applies to apply for a moratorium or a deferred payment of its tax debts. This will trigger a suspensionof all current proceedings of collection of taxes. Obtaining a moratorium enable the beneficiary to be issued a tax clearance certificate valid for onemonth (instead of 3 months).

Suspension of checks on the spot of social security contributions

All Companies Control on the basis of documents are be privileged in April, May and June.

Cameroon provides tax measures, industry specific tax deferral and social security measures.


Cameroon (cont’d)


Cancellation of penalties and deferred payment of social contributions on the months of April, May and June

All Companies Donations and gifts made by companies to the State or its dismemberments in the context of the fight against COVID-19 are fully deductible from the turnover without any ceiling unlike donations made to other organizations referred to in the article 7 A-5 of the General Tax Code.

Suspension of on-site audit of social security contributions

All Companies Control on the basis of documents are to be privileged.

Social contributions: Suspension of the application of collection measures for companies directly affected by the crisis

All companies Late payment penalties of social contributions can be cancelled on justified request.

Furthermore, also on justified request, payments can be split as follows:• April dues, on May, June and July;• May dues, on June, July and August;• June membership fees, on July, August and September.

Treasury support measures All Companies For companies having VAT credit validated and waiting to be reimbursed, the State as provided for a specific allocation of 25 billions XAF, in order to clear the backlog.

Extension of the payment of the property tax

All Postponement until 30 September 2020 of the timeline for the payment of the property tax in relation to FY20 (instead of 30 June 2020).

Banking sector – regulator measures

Bank and Micro-finance - Extension of deadline for the provision of periodic reporting.- Suspension of dividend distributions (maximum limit date of suspension 31 December 2020).

Exemptions of taxes and custom duties of Covid-19 material

All Exemption of import taxes and export duties, subject to prior authorization on goods acquired within the frame of fighting Covid-19 in Cameroon.


Chad


Reduction of tax and tax credit

Small businesses As of April, 2020, small enterprises can benefit from 50% reduction is granted on amounts to be paid to Public Treasury and minimum flat tax. Itapplies as follows:

- A reduction of 50% is granted on the amount to be paid to the Public Treasury by taxpayers who have not yet filed the declaration of businesslicense and that of the minimum flat tax;

- For taxpayers who have already filed the business license and that of the minimum flat tax at the beginning of the year, they are granted a taxcredit up to 50% (excluding penalties) of the amounts paid to the Public Treasury to be used against future tax payments, including those for theyear 2021 except those for which the taxpayer is only a collector (VAT, PIT, WHT...).

Suspension of tax audits All companies As of April 2020, the Tax Authorities will suspend for a period of three (03) months, external tax audits (spot and general tax audits). This suspension ofcontrol also extends to customs audits in companies.

This measure does not, however, concern tax audits in the process of being finalized, particularly those that are the subject of drafts exchange or thosefor which the notifications of confinements of adjustments or issuance of the Notice of Assessment (AMR) are in the cycle of sending.

This measure does not, however, concern tax audits that are in the process of being finalized, particularly those that are subject to drafts exchange orthose for which notifications of adjustments, confirmation of adjustments or issuance of the recovery notice (Avis de Mise en Recouvrement in French)are about to be sent.

As a result, desk tax audits will be conducted normally during COVID - 19. In this context, communication with taxpayers via emails should bepreferred.

Chadian Government provides SMEs support scheme, suspension of tax audits, examination of applications from companies singularly affected by measures taken and facilities in terms of exemption of products (food and medical products) and medical equipment


Chad (cont’d)


Examination of applications from companies singularly affected by the measures taken by the Government

All companies The Tax Authorities will give special consideration to any request, solicitation or claim relating to the occurrence of economic or financial hardship from companieswhose activities are seriously affected by the measures taken in the context of fight against Covid-19. Appropriate responses will be made to their requests inaccordance with fairness and tax justice.

Facilities in terms of exemption of products (food and medical products) and medical equipment

Economic operators, Partners recognized by the Ministry of Health and other organizations

1. The following products will be exempted from customs duties and import taxes until the end of the year 2020: rice, oil, flour, pasta, salt, millet, maize andsorghum.

2. Exemption from customs duties and taxes on medical products and equipment that are effectively part of the fight against Covid-19 will be in accordance withthe list of products jointly agreed and proposed by the World Health Organization (WHO) and the World Customs Organization (WCO) and falling under thefollowing sections:

• Covid-19 test kits / instruments and devices for diagnostic testing;• Protective clothing and similar articles;• Disinfectants / articles for sterilization;

3. The facilitation and acceleration of customs clearance procedures for medical products and equipment intended for the fight against Covid-19 (directremovals, advance declarations, duty credits) will be reserved for economic operators registered and recognized by the tax and customs authorities andpartners recognized by the Ministry of Public Health.

4. Temporary customs admission (with reduced formalities) can be granted to organizations involved in the fight against the pandemic recognized by theMinistry of Health for any equipment used by them or under their control in relief operations or in the fight against the Coronavirus with the guarantee oftheir re-exportation at the end of the operations.

5. In addition, provisions are taken by the customs services to exempt importers of food and health products from prior declarations and authorizations byreferral to local banks and economic operators through their umbrella organizations.

Chadian Government provides SMEs support scheme, suspension of tax audits, examination of applications from companies singularly affected by measures taken and facilities in terms of exemption of products (food and medical products) and medical equipment

• Oxygen therapy devices and pulse oximeters ;• Other medical appliances and devices ;• Other equipment for medical use.


Ghana


CIT return filing All companies The due dates for filling of CIT returns was extended from the standard 4 months to 6 months after end of the basis year.

The extension covered the filing of corporate income tax and transfer pricing returns.

Annual Individual tax return filing

All individuals The due dates for filling of annual individual tax returns for 2019 year of assessment was extended by 2 months to June 2020.

The extension covered the filing of individual annual tax returns that also normally due at the end of April each year for the prior year.

Waiver of penalties on principal tax liabilities

All taxpayers All taxpayers were granted a waiver of penalties on principal tax liabilities owed by the taxpayers to the extent that such outstanding liabilities wereredeemed by 30th June 2020.

Contributions and donations to fight COVID-19

All companies Companies shall be granted a waiver of VAT on donations of stock of equipment and goods donated for the purpose of fighting the COVID-19pandemic.

All donations and contributions towards fighting of the COVID-19 pandemic shall also be allowed as a deductible expense for tax purposes.

Waiver of taxes on third-tier pension funds withdrawals

All individuals Any individual who makes withdrawals from Tier Three Provident Funds or personal pension schemes before maturity as a result permanent loss ofemployment or capital due to the COVID-19 pandemic is exempted from income tax on such withdrawals.

Ghanian Government has put in place intervention policies that are focused on helping companies and individuals deal with the impact of the COVID-19 pandemic.


Ghana (cont’d)


Waiver of tax on personal emoluments of all frontline health workers

All qualifying frontline health workers

The personal income tax on the personal emoluments of qualifying frontline health workers for April to September 2020 has been waived.

The tax waiver specifically covers the following categories of health workers:(i) Category 1: Staff of Public Sector Health Facilities on the centralized payroll administered by the Controller and Accountant General;(ii) Category 2: Staff of sub-vented Quasi-Government Health Facilities;(iii) Category 3: Staff of Public Health Facilities paid through Internally Generated Funds;(iv) Category 4: Staff of Self-Accounting Quasi-Government Health Facilities; and(v) Category 5: Staff of Private Sector Health Facilities duly registered by the Ministry of Health.

Additional allowance for frontline health workers

All qualifying frontline health workers

All qualifying frontline health workers have been granted an additional allowance of 50% of their basic salary for March to September 2020. Personalincome taxes have been waived off the additional allowance paid to the frontline health workers.

Institution of email filing and direct transfer payment system

All taxpayers The Ghana Revenue Authority (GRA) has instituted an email tax filing and direct transfer payment system to allow taxpayers file and pay taxes with thevarious GRA offices remotely.

Ghanian Government has put in place intervention policies that are focused on helping companies and individuals deal with the impact of the COVID-19 pandemic.


Guinea


Deferral of taxes and social security charges for the tourism and hotel sector

Companies in the tourism and hotel sector

• Deferral for three months (from April to June 2020 included) of taxes;

• Deferral for three months (from April to June 2020 included) of all social security contributions;

• Deferral for three months (from April to June 2020 included) of water and electricity bills;

• VAT exemption for three (3) months (from April to June 2020 included) on water and electricity bills;

According to the circular letter 1727 of the National Tax Directorate (DNI) of 16 April 2020, the deferral of the payment of taxes does not exempt the taxpayer from his monthly/annual reporting obligations.

Deferral of taxes charges for SMEs

Small and Mid-size Enterprises (SMEs)

• Deferral of three (3) months of payment of taxes and similar payments.

The Circular letter 1727 of the National Tax Directorate (DNI) of 16 April 2020 defines small and medium-sized enterprises as those with a turnover of between GNF 500,000,000 and GNF 1,500,000,000 and which come under the Service of Middle-sized Enterprises (SME).According to the circular letter referred to above, the deferral of the payment of taxes does not exempt the taxpayer from his monthly/annual reporting obligations.Unlike companies in the tourism sector, the deferral of payment obligations for SMEs does not cover social obligations, including the contribution to the National Social Security Fund.

Tax exemption for VSEs Very Small Enterprises (VSEs) • Tax exemption for three (3) months (from April to June 2020 included);

• Social security contributions exemption for three (3) months (from April to June 2020 included);

The Circular letter 1727 of the National Tax Directorate (DNI) of 16 April 2020 defines Very Small Enterprises as those with a turnover under GNF 500,000,000 and which come under the Service of deconcentrated services.According to the circular letter referred to above, the tax exemption does not exempt the taxpayer from his monthly/annual reporting obligations.

Guinea provides deferral of taxes, tax exemption, industry specific tax deferral and exemption measures.


Guinea (cont’d)

Measure Name Target Group (Optional) Key Points/Summary

Exemption from duties and taxes on health equipment against COVID19

All companies • exemption from duties and taxes for production and sales of health equipment and assimilated products intended for the fight against COVID19.

Reduction of the delay for refunding the VAT credit

All companies • Reduction of the delay for refunding the VAT credit which is now set at two (2) weeks instead of two (2) months.


Kenya


Reduction of resident corporate tax rate

Resident companies The TLAA 2020 amended Paragraph 2 (a), Head B of the Third Schedule to the ITA by reducing the resident corporate income tax (“CIT”) rate from 30% to 25%. The reduced resident CIT rate of 25% is applicable w.e.f. the year of income 2020. There remains uncertainty, however, as to whether resident companies with year ends between 01 January 2020 and 24 April 2020 will benefit from the reduced rate noting that the TLAA 2020 came into law on 25 April 2020.

The non-resident CIT rate of 37.5% however, has not been amended.

Reduction of individual income tax rates

Individuals liable to tax in Kenya

The TLAA 2020 similarly amended Paragraph 1, Head B of the Third Schedule to the ITA by repealing the individual tax bands contained therein and introducing new tax bands capped at a maximum tax rate of 25%, as illustrated below.

The amended tax rates highlighted above will also apply with respect to pension withdrawals (in excess of the tax free amounts) made before the expiry of 15 years from joining the fund.

Repealed tax bands (Annual) Repealed tax bands (Monthly) Tax rate New tax bands(Annual)

New tax bands(Monthly

Tax rate

First KES 147,580 First KES 12,298 10% First KES 288,000 First KES 24,000 10%

Next KES 139,043 Next KES 11,587 15% Next KES 200,000 Next KES 16,667 15%

Next KES 139,043 Next KES 11,587 20% Next KES 200,000 Next KES 16,667 20%

Next KES 139,043 Next KES 11,587 25% Any income above KES 688,000

Any income above KES 57,333

25%

Any income above KES 564,709 Any income above KES 47,059 30%


Kenya (cont’d)


Reduction of individual income tax rates

Individuals liable to tax in Kenya

(Cont’d.)With respect to pension withdrawals (in excess of tax free amounts) made after the expiry of 15 years from joining the fund, or on attainment of 50 years, or upon early retirement on the grounds of ill health of body or mind, the below revised tax rates are applicable:

Increase in personal tax relief

Resident individuals The TLAA 2020 further sought to increase the annual personal relief to which all resident individuals are entitled to from KES 16,896 p.a. to KES 28,800 p.a. This translates to a monthly personal relief of KES 2,400, and increase from the former KES 1,408.

A direct impact of the increased annual personal relief is that resident individuals earning up to KES 288,000 p.a. (KES 24,000 p.m.) will be fully relieved from paying tax, while individuals earning in excess of KES 288,000 p.a. will benefit from reduced taxes of up to KES 11,904 p.a. (KES 992 p.m.).

Overhaul of the turnover tax regime

Businesses (including incorporated businesses) earning in excess of KES 1M, but less than KES 50M, p.a.

The TLAA 2020 overhauls the turnover tax (“TOT”) regime that was reintroduced via the Finance Act 2019. The expanded TOT regime includes the following amendments:• Reduction of the TOT rate from 3% to 1%;• Increase of the TOT threshold from income up to KES 5M to income between KES 1M and KES 50M;• Inclusion of incorporated entities under the purview of the TOT regime;• Removal of requirements to account for presumptive tax where liable for TOT;• Reduction of TOT late filing penalties from KES 5,000 to KES 1,000.

Repealed tax bands Tax rate New tax bands Tax rate

First KES 400,000 10% First KES 400,000 10%

Next KES 400,000 15% Next KES 400,000 15%

Next KES 400,000 20% Next KES 400,000 20%

Next KES 400,000 25% Any income above KES 1,200,000 25%

Any income above KES 1,600,00 30%


Kenya (cont’d)


Reduction of the standard VAT rate

All consumers (individuals and businesses) of taxable goods and services

The Cabinet Secretary, National Treasury, vide Legal Notice No. 35 of 2020 dated 26 March 2020 amended Section 5 (2) of the VATA 2013 by reducing the standard rate from 16% to 14% effective 01 April 2020.

Legal Notice No. 35 of 2020 was issued pursuant to the powers conferred to the Cabinet Secretary, National Treasury to vary the VAT rate either upward or downward by an amount not exceeding 25% of the prevailing rate.

Exemption of Personal Protective Equipment (“PPE”) from VAT

Medical practitioners and the general public

The TLAA amended the VATA 2013 by exempting PPEs, including facemasks for use by medical personnel in registered hospitals and clinics, or by members of the public in the case of a pandemic or a notifiable infectious disease.


Malawi


Tax payments –interest/penalty waivers

The President directed the Malawi Revenue Authority (MRA) to open a voluntary tax compliance window (VCW) for a period of six months from 8 April 2020 to 31 October 2020 to allow taxpayers with arrears to settle their tax obligations in instalments without penalty, interest, or charges. The scheme is open to all businesses, corporate organizations, and individuals.

The MRA published a formal notice on 8 April 2020, advising that in order to benefit from the VCW, taxpayers are expected to complete a VCW Application Form, available from the MRA website. Completed applications are to be emailed to the MRA, sent to a mobile phone number, or uploaded to the MRA website. Applicants will be notified of the outcome of the application through the same channel through with the application is submitted.

All businesses, individuals and corporations are eligible to apply, provided:The entity (or person) is not registered with the MRA, but has transactions that were supposed to be taxed and are not being taxed;• The entity is registered, but is not filing returns or remitting taxes;• The entity is registered but has filed incorrect returns;• The entity initially filed returns, but became non-compliant;• The entity has tax arrears and no payment arrangement was made;• The entity has not declared imports (smuggling) or has misclassified or under declared imports.

Tax reliefs – rate reductions Customs and trade • The President further announced tax waivers on the importation of essential goods for Coronavirus management, which include, but are not limited to, personal protective equipment (PPE), hand sanitizers, soaps, and water treatment chemicals.

• The economic stimulus and relief measures detailed above are effective immediately, and it is expected that more measures will be implemented, through the Ministry of Finance, for promulgation in the coming weeks. The tax amnesty measures, on the other hand, are effective for a period of 6 months from 8 April 2020 to 31 October 2020


Malawi (cont’d)


Tax reliefs – rate reductions Employment/personal tax The President also announced a waiver of Resident Tax on all foreign doctors and Medical Personnel in Malawi, in order to encourage the availability of personnel in the sector at this critical time.This is coupled with a waiver of the non-tourism levy, in order to support the tourism industry in Malawi.

The economic stimulus and relief measures detailed above are effective immediately, and it is expected that more measures will be implemented, through the Ministry of Finance, for promulgation in the coming weeks. The tax amnesty measures, on the other hand, are effective for a period of 6 months from 8 April 2020 to 31 October 2020.

Loans, Grants and Banking Protection of Foreign Exchange Market

• The President announced a cushioning of the foreign exchange market in order to ensure the availability of forex, and the stability of the foreign exchange rate. This was coupled with the implementation of an Emergency Assistance Framework, to support local commercial banks in the event of worsening liquidity, and to aid on a case by case basis.

Loans, Grants and Banking Increase in Loan Facilities for SMEs and Moratorium on Interest

• The President of Malawi directed a MWK 2 billon increase in the Malawi Enterprise Development Fund (MEDF) loan allocation, which has increased to MWK 15 billion, in order to help Micro, Small, and Medium Scale businesses that have been seriously affected by the pandemic. This is coupled with a three-month moratorium on interest on principal loan repayments due by SMEs to commercial banks. Banks are to further restructure loans to more than one year.

Other MeasuresContinuity of Tobacco Trading Floors

As an agriculturally based economy, Malawi continues to rely heavily upon tobacco production and tobacco sales to support the economy, with tobacco accounting for over 55% of Malawi’s total exports. The President therefore directed the Ministry of Agriculture to ensure that tobacco auction floors in the country continue to trade normally during the COVID-19 pandemic, in order to maintain the tobacco marketing season and protect tobacco farmers.

Other MeasuresSpecial Fund for Agricultural Produce

• The President also announced the provision of a special fund of MWK 3 billion for the Agricultural Development and Marketing Corporation (ADMARC) to purchase agricultural produce at competitive prices, for the benefit of local Malawians.

Other MeasuresReduction in Fuel Prices with Immediate Effect

• As directed by the President in his National Address of 4 April 2020, the Malawi Energy and Regulatory Authority (MERA) reduced the prices of fuel with immediate effect, in order to reduce transportation costs in the country. Petrol prices were reduced from MWK 930 to MWK 780 per litre, Diesel prices were reduced from MWK 887 to MWK 765 per litre, and Paraffin prices were reduced from MWK 693.60 to MWK625 per litre.


Malawi (cont’d)


Other Key Measures Other notable measures announced by the President include:• A reduction in fees charged on electronic money transactions, in order to promote the use of the same; and • An increase in consumer protections with respect to the prices of essential goods, including stiff fines for retailers that artificially inflate the price of

goods for profit making purposes.

The economic stimulus and relief measures detailed above are effective immediately, and it is expected that more measures will be implemented, through the Ministry of Finance, for promulgation in the coming weeks. The tax amnesty measures, on the other hand, are effective for a period of 6 months from 8 April 2020 to 31 October 2020.


Mozambique


Customs measures Authorization, until 31 December 2020, of early exit in the import of COVID-19 prevention and treatment products. However, this facility should be regularized up to 90 days, within the before mentioned period.

Income tax measures Exemption from advance payment, if below requirements are met.

Postponement of the special advance payment due in the months of June, August and October 2020 is now postponed to January, February and March 2021, if below requirements are met.

The above income tax measures apply to taxpayers who cumulatively meet the following requirements:• With an annual turnover up to 2,500,000 MT in 2019; and• Have their tax situation regularized

These measures are granted upon coherent request.

Value-added tax (VAT) measures

Until 31 December 2020, it is authorized to offset VAT credits against other taxes due.

Procedures The Minister of Finance is responsible for approving the required procedures to apply the announced measures.


Namibia


Tax payments –acceleration of refunds –VAT/GST

Ministry of Finance stimulus package – fast-tracked payment of overdue and undisputed VAT refunds We understand that the VAT refunds that will be fast-tracked are those relating to periods whose audits have already been completed and where all other tax accounts of the relevant taxpayer are in good standing.

For the periods that are still in the process of being audited or those whose audits have not commenced yet, the normal audit process will have to take place before refunds are paid out. We however understand that pending and outstanding audits will be expedited.

We encourage taxpayers with outstanding VAT refunds to approach Inland Revenue for the status of the refund where such audits have been completed or in the process of been finalized. For the periods where audits are yet to be start, we encourage taxpayers to approach Inland Revenue for the allocation of an auditor for the process to commence.

Job Support - Combined relief package announced by Social Security and Ministry of Finance

The Employer Wage Subsidy Program

The program is designed to potentially assist 7,900 employers who is estimated to employ 65,420 employees. The program is budgeted to receive N$150 million from the Ministry of Finance. This will be combined with some waiver relief from the Social Security Commission discussed in more detail below. To qualify for the program prospective beneficiary employers:• Should agree not to retrench staff for three months (we assume this is for the period 01 May 2020 to 31 July 2020); • May not reduce staff salaries by more than 50%; and • Should be in good standing with the Social Security Commission.

The application process is set out below.

Employers in affected industries and that are successful with their application will receive a subsidy based on their total wage bill. The subsidy will be in the form of social security contribution waiver and a cash pay-out. The subsidy will be a cash subsidy of 17% of the total wage bill and a social security contribution holiday, or both for a period of three months. There were no further details provided regarding the calculation of the total wage bill. In addition, the three month period was not confirmed – we assumed it is for the period 01 May 2020 to 31 July 2020.

Any benefits to be received should be netted off against any claims the employer in question may have received from Government or other forms of compensation (FIDIC or insurance).


Namibia (cont’d)



The Affected Employees Program

This program has a budget allocation of N$350 million and is anticipated to cater for between 56 000 and 117 000 participants. To qualify for the program, participants: • Should have been registered with the Social Security Commission as at 1 February 2020; and• Should be able to prove loss of income related to COVID19. Detailed eligibility criteria in relation to proving the loss of income will be confirmed by

the Social Security Commission; and • Should earn less than N$50 000 per annum.

The application process is set out below.

The benefit will be limited to 50% of monthly salary, subject to a maximum of N$1 000 per month for a three month period. We assume the three month period referred from the 1st of May 2020 to the 31st of July 2020.The benefit will be netted of other benefits received from Government (e.g. Emergency Income Grant).


Application Process Applicants will need to apply to the Social Security Commission offices via electronic templates that will be available on the website of the Social Security Commission (www.ssc.org.na).

Application forms will be available during the first week of May 2020.

The Social Security Commission also confirmed that more information will be available on its website from 30 April 2020.

Payments and relief measures will depend on the applicant providing all required documentation and information.

On 15 June 2020, the Namibian Ministry of Finance issued a media release confirming:• The extension of time for the submission of individual tax returns that are due on 30 June 2020. The deadline is extended to 30 September 2020;

and• The extension of time for the closing of the ITAS incentive program from 30 June 2020 to 30 September 2020.

The extension is necessary in order to allow the employers to submit their Employee Tax on the Integrated Tax Administration System (“ITAS”) portal.

http://www.ssc.org.na/


Namibia (cont’d)


Loans, Grants and Banking -Ministry of Finance stimulus package –clarification on loan scheme

Non-agricultural small business loan scheme

These loans will be provided by the Development Bank of Namibia (“DBN”). We understand that qualifying criteria will be set-up between the Ministry of Finance and DBN. DBN should be able to confirm the qualifying criteria.

No further details have been provided on the interest rates that will be applied.


Agricultural business loan scheme

These loans will be provided by the Agricultural Bank of Namibia (“AgriBank”). We understand that qualifying criteria will be set-up between the Ministry of Finance and AgriBank. AgriBank should be able to confirm the qualifying criteria.

No further details have been provided on the interest rates that will be applied.


Tax-back loan scheme for non-mining corporates

Non-mining companies will be able to borrow one-twelve of the tax payments made in the past year. We now understand that the qualifying tax payments on which the loan amount will be based are income tax payments only and does not include, PAYE, VAT, import VAT or withholding taxes.

The previous tax year refers to the previous financial year.

Taxpayers are required to provide proof of such tax payments to their chosen commercial banks.

Where no income tax payments were made due to the company being in a tax loss position in the previous financial year, such company will not qualify for the loan scheme.


Tax-back loan scheme for individuals

Individuals will be able to borrow one-twelve of the tax payments made in the past year. We now understand that the qualifying tax payments on which the loan amount will be based are PAYE payments for the tax year ending 28 February 2020.

Individuals are required to provide proof of such tax payments to their chosen commercial banks.


Nigeria


Extension of Moratorium on all CBN intervention facilities

All beneficiaries of all intervention facilities form the Central Bank of Nigeria

All intervention facilities from the Central Bank of Nigeria are granted a one-year extension on principal repayments. New amortization schedules will be provided for all beneficiaries. This moratorium took effect from the 1 March 2020.

Forbearance on loan granted to certain businesses and households

Businesses and households most affected by the COVID Pandemic.

The Central Bank of Nigeria has directed Banks to consider temporary and time-limited restructuring of the tenor and other terms for loans granted for businesses and households most affected by the outbreak of the COVID-19.

This is particularly applicable to Oil & Gas, Agriculture and Manufacturing sectors.

N50 Billion targeted credit facility

Households, small and medium sized enterprises

An establishment of a N50 Billion Credit Facility to be administered through the NIRSAL Microfinance Bank for households, small and medium-sizedenterprises that have been significantly impacted by the COVID-19, including but not limited to hoteliers, airline service providers, health caremerchants etc.

Interest rate reduction Beneficiaries of Central Bank of Nigeria’s intervention facilities

Interest rates on all applicable intervention facilities from Central Bank of Nigeria are to be reduced from 9% to 5% per annum for 1 year with effect from 1 March 2020.

Nigeria provides loan moratoriums, SME support scheme, extension of obligations to file tax returns extension, staff retention tax rebate, import duty on selected goods and targeted credit facilities.


Nigeria (cont’d)


Extension on filing on Corporate tax returns and online filing solutions

Companies One-month extension for filing Companies Income Tax (CIT) returns. With most companies adopting December year-end, it means CIT returns that wereordinarily due for filing by 30 June 2020 can now be filed by 31 July 2020.

One-week extension for filing of value-added tax returns and payment of withholding taxes. The due date has been extended from the 21st of every monthto the last working day of the month.

Online submission of tax returns via FIRS e-portal. Designated emails were also provided for use by certain categories of taxpayers.

Two-month delay in submission of audited financial statements. Taxpayers are permitted to file annual CIT returns without being accompanied by thehitherto mandatory audited financial statements. The audited financial statements must however be provided within two months after the revised due dateof filing.

Shared site for submission of documents for tax audits and desk reviews. FIRS promised to publish information requests on its website and create a portalwhere requested documents could be uploaded by the taxpayer.

Extension of deadline for filling personal tax returns

Individuals Lagos, Edo state and the Federal Capital Territory inland revenue services offered an extension of annual tax returns for 2019 from the deadline of 31 March 2020 to 31 May 2020. The Lagos Inland Revenue Service has further extended till 30 June 2020.


Nigeria (cont’d)


Extension pf AEOI-CRS Reporting Dateline for Financial Institutions

Financial Institutions The Federal Inland revenue service on 19 May 2020, extended the deadline for filing 2019 financial accounts reports by Financial Institutions under the Automatic Exchange of Information Common Reporting Standard (AEOI-CRS) Regulations from 31 May 2020 to 30 September 2020.

Economic Stimulus Bill Companies, individuals,SMEs etc.

[Please note that this tax measure is still in draft form and subject to further clarification from the Nigerian Government]

The Nigerian House of Representative recently passed the Economic Stimulus Bill 2020 which is posed to help cushion the adverse effect of the economicdownturn caused by the Pandemic. Some of the measures proposed under the Bill includes amongst others;

Provision of special tax rebates on Nigerian company which maintains the same employee status without retrenching any staff from 1 March to 31December 2020 would be entitled to a 50 income tax rebate of the actual amount due, or paid as pay as you earn amongst others.

Import duty waiver is proposed for medical equipment, medicines, personal protection equipment and such other medical necessities required for thetreatment and management of COVID-19 in Nigeria. The import duty waiver would remain in force until 31 December 2020.

Postponement of mortgage obligations due to the Federal Mortgage Bank of Nigeria (FMBN) on residential mortgages obtained by individualcontributors to the National Housing Fund for 180 days beginning from 1 March 2020


Rwanda


Extended Lending Facilities Banks As of March 18, 2020, banks experiencing liquidity issues can access a Frw 50 billion credit facility granted by the National Bank of Rwanda:• The Central Bank Rate will be applicable;• The facility is extended to 3,6 and 12 months, in addition to the existing overnight lending;• The facility is available for a six (6) month period;• The facility is extended at National Bank of Rwanda’s discretion.

Treasury Bonds rediscounting window

Banks • National Bank of Rwanda will buy back treasury bonds at the prevailing market rates for the next six (6) months beginning March 2020 where one fails to sell the same in the secondary market.

• The waiting period is reduced from thirty (30) days to fifteen (15) days)

Reserve requirement ratio Banks The reserve ration requirement is lowered by 100 basis points from 5% to 4% effective 1 April 2020. The aim is to allow banks more liquidity to furthersupport business

Review of charges and limits for electronic transactions

All For a period of three (3) months beginning 19 March 2020, mobile money operators and banks shall implement:• Zero charges on all pull and push services;• Zero charges on all mobile money transfers;• Zero merchant fees on payments for all point of sale transactions.• Increase the limits on transfers to mobile wallets as follows:

• Frw 1,500,000 from Frw 500,000 for Tier 1 individual customers;• Frw 4,000,000 from Frw 1,000,000 for Tier II individual customers.

The National Bank of Rwanda undertakes specific financial measures to support the liquidity and to encourage electronic transactions


Rwanda (cont’d)


Reduction of central bank rate

Banks The Central Bank rate is effectively reduced from 5% to 4.5. percent from 29 April 2020 to ease the liquidity flow and allow commercial banks to continue financing the economy

Easing of prudential requirements

Banks National Bank of Rwanda allowed banks to ease some of the requirements to facilitate renegotiation of loan terms and conditions for individuals, SMEs and corporations impacted by the pandemic.

Provisional tax payments for 2020

All taxpayers Taxpayers are permitted to adopt current year basis in determining the provisional taxes for the 2020 tax period. The tax laws in Rwanda allow only for prior basis to be used in determining the provisional tax payments due to the Rwanda Revenue Authority.

The Rwanda Revenue authority will develop declaration modalities in due time.

Prorating taxes due based on period of operation

Transport Motor vehicles The quarterly fixed personal fixed income tax on motor vehicles for the quarter will be determined on a pro rata basis depending on the period ofoperation.

Temporary waiver of Pay As You Earn

Teachers of private schools, tourism sector, total sector and

PAYE on employment income for employees earning a net salary up to Frw 150,000 is waived beginning April 2020 as follows:• For a six (6) month period for teachers of private schools; and• for a three (3) month period for employees in the tourism and hotel sector.

Exemption from Value Added Tax

Manufactures of masks • Masks made in Rwanda are exempted from VAT.


South Africa


Skills development levy (“SDL”) payments holiday

All employers Effective from 1 May 2020, there will be a four-month SDL payments holiday for employers. SDL is a compulsory levy scheme for the purposes of funding education and training and is payable by employers on a monthly basis, at a rate of 1% on the total remuneration paid.

Fast tracking of VAT refunds

All VAT vendors In order to enable a faster input tax refund process, VAT vendors which are in a net refund position will be permitted to elect to file monthly (instead of bi-monthly) VAT returns. This will be implemented for a limited period of four months starting from 1 April 2020.

This will enable “Category A” vendors, which would otherwise have only filed in June 2020 in respect of the April/May 2020 VAT period, to file VAT returns in May for the April period.

Deferral of a portion of PAYE

Tax compliant companies with gross income not more than R100 million

Tax compliant businesses below the R100 million turnover threshold will be allowed to delay 35% of their PAYE liabilities over the next four months.

South Africa: Skills Development Levy Holiday, fast tracking of VAT refunds, postponement of the implementation of the Budget 2020 measures with respect to the limitation of interest deductions and carry forward of assessed losses, an expanded employment tax incentive (ETI) and Covid19 Temporary Employer Relief Scheme.


South Africa (cont’d)


Deferral of provisional tax Tax compliant tax payers with gross income not more than R100 million

For a period of twelve months, beginning 1 April 2020 and ending on 31 March 2021, there will be a deferral of a portion of the payment of the first and second provisional tax liability to SARS, without SARS imposing administrative penalties and interest for the late payment of the deferred amount.

A qualifying taxpayer includes a tax-compliant company, trust, partnership or individual with turnover or gross income of R100 million or less in the year of assessment falling within the 1 April 1 2020 to 1 April 2021 period, and where the gross income amount does not include more than 10% of income in the form of interest, dividends, foreign dividends, property rental, or remuneration received from an employer.

Case by case application to SARS to defer tax payments without incurring penalties

Large business Businesses with a turnover of more than R100 million a year can apply directly to SARS on a case-by-case basis for deferrals of their tax payments. These businesses may contact their relationship manager through the SARS Large Business Centre to initiate the application.

It is expected that SARS will not be imposing penalties for late payments of taxes provided it can be shown that the taxpayer has been materially impacted as a result of the lockdown measures.

Deferral of new carbon tax payment

Companies liable for carbon tax

The payment and filing of the new carbon tax has been deferred for three months.

Increase employment tax incentive (“ETI”)

Qualifying employers The ETI for qualifying employees was increased from R 1 000 to R 1 750 for the first 12 qualifying months and from R 500 to R 1 250 for the second 12 qualifying months. The measures have now expanded to provide R750 per employee for qualifying employees after their first 24 months of employment, as well as qualifying employees from 30 to 65 years of age.

Covid19 Temporary Employer Relief Scheme

Employers who are registered with the Unemployment Insurance Fund (“UIF”)

The government introduced a Covid19 Temporary Employer Relief Scheme which is managed by the Department of Labour. Where employers are unable to pay their employees or where employees are required to take compulsory leave, the TERS directive allows employers to claim a special payout from the UIF to continue paying their employees. This new Covid19-TERS Scheme and any other normal UIF benefit is only applicable to employers who are registered with UIF.


South Africa (cont’d)


A 90 day deferral for the payment of excise taxes on alcohol and tobacco

Alcohol and tobacco industry

Due to the current restrictions on the sale of alcohol and tobacco, producers in these industries are liable for large excise duty bills while no sales of product are occurring. Accordingly, payments due in May 2020 and June 2020 will be deferred by 90 days for excise compliant businesses to more closely align tax payments with retail sales.

Postponement of the implementation of the Budget 2020 measures with respect to the limitation of interest deductions and carry forward of assessed losses

All companies Two tax proposals announced by the Minister of Finance in his 2020 Budget Speech were meant to be effective for years of assessment commencing on or after 1 January 2021: (i) the restriction of net interest expense deductions to 30% of earnings; and (ii) the limitation on the use of assessed losses carried forward to 80% of taxable income. Both measures will now be postponed to at least 1 January 2022.


The Gambia

Measure Name Target Group (Optional)

Key Points/Summary

Extension of Corporate Income Tax (CIT) payment and filing due date

All tax payers Gambia Revenue Authority (GRA) has extended the filing and payment deadline for quarterly CIT returns/payments for the first quarter of 2020 by two months from the 15th April 2020 to the 15th June 2020.

The Gambia Revenue Authority has significantly scaled down on its operations in response to measures taken by the Government

As a result of the scaled down on operations:• The Authority has suspended all field compliance enforcement activities, except for limited follow-ups on overdue tax arrears.• The Authority has also suspended all field taxpayer audits, with the exception of limited desk audits and reviews.


Togo


Suspension and/or reduction of late payment of social contributions

All companies • Suspension of the calculation of late payment increases on social security contributions from April to July 2020 for employers;• Reduction of late payment overdue of social security contributions for those who agree to pay their social debts until October 31, 2020 (100%

increase for the informal sector, 100% for hotels, restaurants, debits of beverages, schools, hospitals and pharmacies, 75% for SMEs and SMIs, 50%for big companies excluding hotels, restaurants, drinking places, schools, hospitals and pharmacies.

Suspension and exemption (of tax processes)

All companies• Suspension of on-site verifications by the Tax Commission of the OTR;• Suspension of late payment penalties;• Suspension of collections in progress;• Exemption from all taxes and customs on medical materials and drugs related to the fight against Covid-19.

Exceptional measure All companies Maintenance of the deadlines for filing financial statements with the possibility of an exemption to be granted on a case-by-case basis at the request ofthe taxpayer (OTR response letter to ONECCA, April 1, 2020);

Togo provides SME support scheme, industry specific tax deferral and personal income tax, suspension of the calculation of late payment increases on social security contributions from April to July 2020 for employers, reduction of late payment overdue of social security contributions for those who agree to pay their social debts


Togo (cont’d)


Exceptional measure on telework for workers

All companies The employer can use telework even if the legislation is silent on the matter, it can be understand because this practice is relatively recent. It is carried out at the employee's place of residence or at a place agreed with the employer if applicable.

Aid scheme (Money transfer program)

Any vulnerable person The government introduces an aid scheme to support the most vulnerable people facing temporary financial difficulty as a result of the repercussionsof the pandemic and the measures taken to avoid it. Eligible costs under this new aid scheme are limited to the loss of income recognized. The aidtakes the form of a repayable advance and is subject to some conditions.

Help from the BCEAO,

(West African States Central Bank)

Banking system/All companies/Any vulnerable person

In view of the negative impact that this crisis could have on the banking system and the financing of economic activity in the Union, the Central Bank decided:

• to increase the resources made available to banks, in order to allow them to maintain and increase the financing of the economy;

• to broaden the scope of mechanisms available to banks to access Central Bank refinancing;

• to allocate 25 billion to the subsidy fund of the West African Development Bank (BOAD);

• to remind and make banks aware of the use of the resources available on the special window for refinancing credits granted to small and medium-sized enterprises(SMEs / SMIs);

• to set up, with the banking system, a suitable framework to support companies affected by the consequences of the pandemic and who encounter difficulties inrepaying the credits which have been granted to them;

• to conduct negotiations with electronic money issuing companies in order to reduce transaction costs and encourage people to make greater use of digital means ofpayment to better limit contact and travel;

• to supply banks with banknotes in sufficient quantity and quality, to enable them to ensure satisfactory operation of automatic teller machines (ATMs);

• organize, if necessary, the reorganization of the timetable for issuing public securities on the regional financial market.


Uganda


Extension of CIT filing deadline

Companies with a 30 Sept and 31 Oct 2019 year end The extension doesnot extend to tax payable which still remains due by the end of the 6th month after yearend.

Deferral of tax payments Companies that have previously entered into a MoU with URA

Tax payments for persons who had entered into payment plans with URA under a Memoranda of Understanding (MoU) that are due in March and April 2020 have been deferred to May 2020.

Further extension has been granted for payments that had been arranged to be made in May 2020 to June 2020 but only for businesses affected by COVID-19 restrictions.

Deferral of payment of social security payments

All employers facing financial hardship

NSSF extended an amnesty to defer contributions effective March 2020 for the next three months without accruing penalties for employers facing financial hardship who make an application to the Fund.

Tax filing deadlines extended


Uganda (cont’d)


Deferral of tax payments Companies involved in the tourism, manufacturing, horticulture or floriculture sector with an annual turnover of less than Shs. 500m

Employers in most affected sectors

Taxpayers can defer corporation tax and Pay As You Earn (PAYE) to September 30, 2020 for tax liabilities falling between 1 April to 30 June 2020.

Where payments are deferred as above, no interest or penalty will apply

Voluntary disclosure All persons A waiver of interest extended upon voluntary disclosure of any tax liabilities by June 30, 2020.

Removal of tax Persons dealing with PPE

Persons executing loan instruments

Exemption from VAT of supply of specified medical goods used in the prevention and treatment of COVID-19 and raw materials/ inputs for making the same (Personal Protective Equipment e.g. face masks, boots, infra-red thermometers, disinfectants etc).

Removal of excise duty on un-denatured spirits made from locally produced raw materials.

Tax deductions Persons making contributions to the Government

Tax deduction allowed for charitable donations made to the Government towards the fight against COVID-19 pandemic

Removal of tax Persons entering into any loan arrangements

Removal of stamp duty on any kind of loan instrument e.g. debenture, mortgage (previously 0.5% of value of the instrument)

Cash flow management Persons with receivable from Government

Government to expedite the payment of outstanding VAT refunds.

Payment of domestic arrears for goods and services supplied to Government by the private sector.

Deferrals and waivers


Zambia


Export duty Suspension of export duty on copper ores and concentrates: Statutory Instrument No. 39 of 2020 provides that export duty on copper ores and concentrates has been suspended during the period 1 April 2020 to 31 December 2020.

Suspension of export duty on precious metals: Statutory Instrument No. 40 of 2020 provides that export duty on selected precious metals has been suspended with effect from 30 March 2020.

Suspension of export duty on crocodile skin: Statutory Instrument No. 38 of 2020 provides that export duty on crocodile skin has been suspended during the period 1 April 2020 to 31 December 2020.

VAT and VAT zero-rating of medical supplies

Input VAT on imported spare parts now deductible: Through a revocation of Regulation 9A of the Value Added Tax Regulations of 2010, Statutory Instrument No. 36 of 2020 provides that input VAT on spare parts lubricants and stationery will be deductible. The Regulation does not provide an effective date.

VAT zero-rating of medical supplies: Statutory Instrument No. 37 of 2020 provides that selected medical supplies will be zero-rated for VAT purposes with effect from 1 April 2020 to 30 September 2020.

The medical supplies qualifying for both import duty suspension and VAT zero-rating include COVID-19 testing equipment, protective garments, thermometers, disinfectants, sterilization products and other medical equipment such as ventilators and patient monitoring devices.

Excise duty Refund or remission of excise duty on ethyl alcohol: Statutory Instrument No. 41 of 2020 provides that excise duty paid or payable on imported ethanol for use in alcohol-based sanitisers and other medicine related activities qualifies for refund or remission, with effect from 1 March 2020.

Deferrals and waivers


Zambia (cont’d)


Import duty Suspension of import duty: Statutory Instrument No. 42 of 2020 provides that import duty on selected medical supplies is suspended with effect from1 April 2020 to 30 September 2020.

Suspension of import duty: Statutory Instrument No. 42 of 2020 provides that import duty on selected medical supplies is suspended with effect from1 April 2020 to 30 September 2020.

Waiver of penalties and interest guidelines

Waiver of penalties and interest: All penalties and interest on outstanding tax liabilities will be waived through administrative guidelines to be issuedby the Zambia Revenue Authority (ZRA).

The waivers will apply on all tax types applicable to any individual or businesses.

The penalties and interest to be waived should relate to principal tax, entries or tax returns made between 1 April 2020 and 30 September 2020.

Penalties and interest relating to the period up to 1 April 2020 shall only be granted upon submission of outstanding tax returns or entries and uponfull settlement of principal tax liabilities.

Penalties and interest relating to the period after 1 April 2020 shall only be granted upon production of a valid Time to Pay Agreement (TPA) enteredinto after that date.

Taxpayers are expected to pay all outstanding principal tax liabilities within the waiver period or such period as may be permitted through a TPA.

Voluntary-disclosures of non-compliance (e.g. of omitted income or unpaid taxes), for any period, made by taxpayers in the waiver period will notattract any penalties and interests if the principal tax liability is paid in full or a valid TPA is produced; and that

The waiver shall not apply to penalties and interest arising from the following:• Cases under litigation or investigation;• An audit or investigation;• Court cases; and• Acts or commission of fraud.


Zimbabwe


CIT- Extension of deadline of filing tax returns.

All taxpayers who are in receipt of;

1. Income from Trade and Investment; and

2. Income from disposal of Specified Assets and Marketable securities.

The deadline to submit Income tax return was extended by four months to 31 August 2020.

VAT All registered operators To ease liquidity problems during the Coronavirus pandemic, ZIMRA pledges to expedite processing of VAT refunds within 30 days of receipt of application. The processing of the refund is triggered by the filing of the return.

In order to receive refunds within the stipulated period, the registered operator should ensure that:• Fully and correctly completed VAT return (VAT 7) has been submitted on time; • Supporting VAT Input tax Schedules showing separately tax invoices paid in Zimbabwean Dollar (ZWL) and in Foreign Currency are attached; • Registered operators' information, banking details and contact details of public officers are correct and up-to date; and• All other tax obligations have been settled.

Unlike the CIT, the deadline for filing tax returns has not been extended. VAT returns are due on the 25th day following month of transaction.

Zimbabwe provides loan guarantee, SME support scheme, industry specific tax deferral and personal income tax measures.


Zimbabwe (cont’d)


Employment Income

Persons not on final deduction system

The deadline for filing 2019 tax returns is extended to 31 August 2020. This applies to a person who during the year 2019 has:• Terminated employment before the end of 12 months; or • Was employed for periods less than 12 months; or • Changed employers; or • Received income from more than one employer; or • Received pension in addition to employment income.

General administration procedures

All tax payers Zimbabwe Revenue Authority emphasized the use of online platform for the following services:• Initial registration with ZIMRA to obtain Business Partner Number (BP);• Submission of Tax Returns (currently Income Tax, PAYE, Value Added Tax, and Capital Gains Tax); • Application for Tax Clearance certificates (ITF263); • Verification and validation of existing Tax Clearance Certificates (ITF263); • Viewing of Accounts Status and Balances; and• Information updating (submission of REV2 Form).

Email shall be used in exceptional cases i.e where submission of returns through online has failed and when submitting provisional income tax return (ITF12B), employment income final return (ITF16) and withholding taxes return (REV 5 forms).

All Communications will be conducted through email and telephonically.


Zimbabwe (cont’d)


Customs and Excise

All taxpayers All borders remain open to essential traffic both in and out of our country, non-essential travel is banned except for cargo. Stations (ports of entry/exit and inland stations) will have skeleton staff, with critical areas having little human interface.

Processing of customs documents will be done online and these include Temporary Importation Permits (TIP’s) for foreign registered vehicles prior to arrival at the border post.

However, application for Immigrants Rebate is suspended until further notice. Returning residents will go through strict screening procedures, and 21 days in quarantine.

Additional measures in place include:• Rebate of duty on essential goods imported for the fight against corona virus disease (Covid-19). The Commissioner in each case, to determine, a rebate of duty

that may be granted on essential goods imported for the fight against corona virus disease (Covid-19). • Control of exports of COVID-19 pharmaceuticals and PPE. All exports from Zimbabwe of any of the items used in fighting COVID-19 will require export permits

issued by the Ministry of Health and Child Care through the Medicines Control Authority [MCAZ].

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Global Covid-19 African Governments' responses - Deloitte

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