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COVID-19 Tax measures to address COVID-19 crisis across Africa 30 April 2020

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Page 1: Tax measures to address COVID-19 crisis across …...PwC Tax and Trade implications of COVID-19 4 Tax measures to Address COVID-19 April 2020 Risks Common Challenges + Worries •

COVID-19

Tax measures to address COVID-19 crisis across Africa

30 April 2020

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Introduction

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PwC

Introduction

• These are unprecedented times and uncharted waters with COVID-19 and low commodity prices.

• Companies are facing many challenges globally due to the COVID-19 restrictions

• The African Continent can be challenging for remote working

• Many African countries rely heavily on revenue from oil & gas.

• Some governments have issued new provisions and incentives during these difficult times

• Our teams will focus on these provisions across Africa, the impact to operations and dealing with Tax

Authorities

3

April 2020Tax measures to Address COVID-19

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PwC

Tax and Trade implications of COVID-19

4

April 2020Tax measures to Address COVID-19

Risks

Common Challenges + Worries

• Income tax, transfer pricing, indirect tax and tariff

issues that are due to disrupted supply chains and

shifts in operations

• Addressing income tax implications of repatriating

or redeploying key personnel

• Cross-border tariff and compliance implications of

getting needed emergency exports to and from

specific territories

• Understanding impacts of disruption on tax

attributes, losses, recoveries and reinvestment

plans

• Impacts of costs and risk on transfer pricing

policies

• Potentially lasting impacts on tax footprint and

operating models

• Reporting and disclosures to ensure tax and

customs compliance

Suggested Next Steps

• Evaluate tax, trade and tariff implications of

alternatives to your global supply chain

• Track business travelers, provide immigration

assistance, address income tax implications of

repatriating global employees

• Understand how to get needed goods and

equipment in and out of different locations

around the globe quickly

• Seek advice on utilizing tax losses, other tax

attributes and tax impact of cash repatriation

that may arise from the emergency

• Assess structure and review other plans to

diversify operating models, while considering

cross-boarder tax and transfer pricing issues

• Understand any required changes in reporting

and disclosures required for tax and customs

compliance

Through a holistic approach to global structuring, we

have provided the world’s top businesses with tax

and trade advice to optimize their global and regional

value chains and operating models, including supply

chains.

We bring an unmatched combination of industry,

strategy, global mobility, HR, immigration, tax,

analytics and technology expertise from around the

world to assist clients in critical people and

organization situations.

Our global network of customs experts utilizes our

relationships and expertise to facilitate import/ export

of goods for our clients.

We help companies determine proper tax treatment

of losses and other attributes, when emergencies

occur.

Our technology-enabled quantitative solutions

practice helps the world’s largest companies model

the impacts of cross-border tax regimes on their tax

attributes and financial cost.

How we’ve helped others

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PwC

Country updates

5

April 2020Tax measures to Address COVID-19

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COVID -19 pandemic

Nigeria

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PwC

West Market Area - Nigeria

7

April 2020Tax measures to Address COVID-19

• Extension for filing VAT and Withholding tax (due to the Federal Tax Authority) from 21st of

every month to the last working day of the month, following the month of deduction

• Nigeria has extended the due date for filing Companies Income Tax returns by one month

• The Lagos Inland Revenue Service (LIRS) has extended filing of annual returns for

Individuals, including self-employed person(s) from 31 March 2020 to 31 May 2020

• The FCT IRS has extended filing of annual returns for Individuals, including self-employed

person(s) from 31 March 2020 to 30 June 2020

• Corporate taxpayers may file their returns using unaudited accounts but subsequently

submit audited accounts within two months after the revised due date of filing

• Waiver of penalty and interest on tax arrears arising from desk reviews, tax audits or tax

investigations which are paid in full on or before 31 May 2020

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PwC

West Market Area - Nigeria

8

April 2020Tax measures to Address COVID-19

• Visits to Federal Inland Revenue Service’s offices are to adhere strictly to globally

recommended social distancing rules

• Field Audits, Investigations and Monitoring visits have been suspended until further notice

• The FIRS plans to publish information requests for desk reviews and tax audits on its website

and create a portal where such information can be uploaded by taxpayers for online review

• Taxpayers are mandated to use available electronic platforms for filing tax returns, paying

taxes and application for Tax Clearance Certificates (TCCs). Email correspondence is also

permitted based on the Finance Act 2020

• Taxpayers can pay foreign currency tax liabilities in naira. The exchange rate to be used is

the prevailing Investors and Exporters forex window rate on the payment date

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PwC

West Market Area - Nigeria

9

April 2020Tax measures to Address COVID-19

• In March 2020, the Nigerian house of representatives passed the stimulus package bill aimed

at stimulating economy, discouraging employee furlough among other intentions.

• The Bill grants an income tax credit at 50% of annual PAYE for employers (excluding

upstream petroleum employers) who retain employees between 1 March and 30 December

2020

• The second incentive includes a waiver on import duties related to medical equipment,

personal protective care etc.

• Introduce a new moratorium on mortgage obligations of Nigerians under the National

Housing Fund

• The second stimulus bill is being arranged given the loopholes of the first bill.

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PwC

West Market Area

10

Nigeria – Key messages & Practical issues

April 2020Tax measures to Address COVID-19

Effectiveness of the

technology platforms to

aid compliance

Balancing the need for

revenue and tax

palliatives by the Federal

Government

Lack of income tax

measures for the upstream

oil & gas companies

Lack of clarity around

certain measures

Dynamic fiscal

environment (Stay

informed)

Tax strategy

(business continuity,

depositary of information,

Tax risk register)

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COVID -19 pandemic

Ghana

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PwC

West Market Area - Ghana

12

April 2020Tax measures to Address COVID-19

• Annual returns: Self assessment filing extended from March to 30 April 2020; Annual filing

due date extended by 2 months

• Tax adjustments: Penalties on principal debts will be cancelled upon payment of

outstanding debts due to the GRA by 30 June 2020; alternative means of paying taxes and

filing returns provided

• Donation incentives: VAT on goods donated in support of efforts against COVID-19 to be

removed; donation will be treated as an allowable expense for income tax purposes

• Individual relief: Withdrawal of non-exempt accrued benefits from some selected

approved schemes to be exempted from the 15% tax; 3 months employment tax

exemption for health workers

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PwC

West Market Area

13

Ghana – Key messages & Practical issues

April 2020Tax measures to Address COVID-19

Some of the

initiatives require

Parliament’s

approval

Historically,

electronic

compliance was

practically not

available

GRA public notice

issued – but not

enough guidelines

Next round for fiscal

policy review is July

2020

Keep adequate

records to support

incentive claims

GRA working on

improve its online

platform for tax

compliance

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COVID -19 pandemic

Chad

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PwC

Francophone Sub Saharan Africa - Chad

15

April 2020Tax measures to Address COVID-19

• 50% reduction of Business License Tax (“Patente”) and flat tax contribution (“Impot General

Liberatoire”) for the 2020 fiscal year

• Suspension of tax and custom audits (including general and spot audits) for 3 months, with

the exception of audits which had already started and desk audits.

• Tax administration will review requests from taxpayers facing financial difficulties (filing,

payment and request for penalties/interest waivers).

• A number of relevant food & medical products are being exempt from import duties

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COVID -19 pandemic

Gabon

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PwC

Francophone Sub Saharan Africa - Gabon

17

April 2020Tax measures to Address COVID-19

• 50% reduction of the business license tax (“patente”)

• 50% reduction of the withholding synthetic tax (“impot synthetique)

• Filing deadline for tax return, DAS Forms and TP documentation pushed back from April 30

to July 31, 2020.

• Option to pay FY19 Corporate Income payments (generally due on 30th April) into three

equal monthly instalments: 30 April 2020, 31 May 2020 and 30 June 2020

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COVID -19 pandemic

Equatorial Guinea

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PwC

Francophone Sub Saharan Africa - Equatorial Guinea

19

April 2020Tax measures to Address COVID-19

• Extension of the deadline for the declaration of the Minimum Income Tax & Company Income

Tax was granted for non oil & gas Small and Medium Businesses (SMB)

• Deferral of payment of the Minimum Income Tax (MIT) to June 30, 2020 and reduction of

the rate of the MIT from 3% to 1.5% until September 30, 2020, for non oil & gas SMB only

• Extension of the deadline of CIT filing up to July 31, 2020 for SMB.

• The Ministry of Mines and Hydrocarbons waived its regulatory fees from oil services

companies for a period of three months. However, a Ministerial Order confirming the entry

in force of this information is still expected from the Government.

• 100% exoneration from social security contributions until September 30, 2020, for companies

that will hire new employees to increase their headcount

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COVID -19 pandemic

Mauritania

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PwC

Francophone Sub Saharan Africa - Mauritania

21

April 2020Tax measures to Address COVID-19

• The Mauritanian government has taken tax measures to facilitate the supply of foodstuffs,

including the exemption from taxes and customs duties on wheat, oils, powdered milk,

vegetables and fruits for the rest of the year to reduce the price of these basic products.

• Tax relief for a period of 2 months for the liberal professions and small businesses from all

municipal taxes.

• An exemption from all taxes and fees resulting for the rest of the year for heads of families

working in the traditional fishing sector

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COVID -19 pandemic

Senegal

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PwC

Francophone Sub Saharan Africa - Senegal

23

April 2020Tax measures to Address COVID-19

• Suspension of the collection of taxes debts of the companies most affected by COVID-19

during the pandemic period.

• A partial remission of the tax debt recorded as at 31 December 2019 will be granted to

companies and individuals for a total amount of XOF 200 billion. Fully tax deductible

donations made to the treasury account in the framework of the COVID-19 pandemic.

• The Government will refund the VAT credits within the shortest possible time. Extension of

the general deadline for payment of suspended VAT recovered by the customs and tax

authorities from 12 to 24 months.

• Small and medium sized and certain other companies (sector of tourism, hotels, catering,

transportation, press, culture, education, agriculture) will benefit from a deferred payment of

taxes until 15 July 2020.

• Allocation to individuals and companies whose activities are directly affected by the COVID-

19 of a direct subsidy corresponding to the amount of the payroll taxes due from March 2020

until the end of the pandemic.

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COVID -19 pandemic

Republic of Congo

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PwC

Francophone Sub Saharan Africa - Republic of Congo

25

April 2020Tax measures to Address COVID-19

• Extension for filing the annual Statistical & Fiscal Declaration and payment of the liquidation

balance of the corporate income tax and tax on industrial and commercial profits from 20 May

to 25 August.

• Possibility to agree a monthly schedule with a deadline extended to 31 December, 2020 for

the payment of the balance of FY19 CIT.

• Extension for filing tax returns for the first quarter from 10 - 20 April 2020 to 10 - 20 June

2020

• 1 month deadline extension for filing monthly direct taxes returns during the confinement

period until further notice

• Non-application of penalties, fines and interests for late payment for a renewable period of 2

months, where necessary

• Payment deferral of Single Tax on Wages (TUS) until 30 June 2020 from April onwards

• Payment deferral for 2 months from April onward for occupancy taxes for business premises

(TOL), tax on certain entertainment etc.

• From April 1st, 2020, suspension of ongoing “in officio” and “ex officio” tax audits for a

period of three months.

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PwC

Francophone Sub Saharan Africa - Republic of Congo

26

April 2020Tax measures to Address COVID-19

• Deadlines to respond to tax assessments and statutory limitation periods are extended

accordingly.

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COVID -19 pandemic

Madagascar

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PwC

Francophone Sub Saharan Africa - Madagascar

28

April 2020Tax measures to Address COVID-19

Deferral of returns and payments of

certain taxes.

Tax authorities are encouraging the use

of electronic and mobile platforms

Full tax deduction for donations to

address COVID 19

Suspension of penalties on late

payment of VAT and Salaries taxes

01 02

03 04

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PwC

Francophone Sub Saharan Africa - Madagascar

29

April 2020Tax measures to Address COVID-19

Deferral until 30 June 2020 of income

tax returns and payments due after

March 23, 2020 (partial lockdown

starting period) for the tourism sectors

(hotels, restaurants, tourist operators,

travel agencies, air transport) and

industrial free-zone enterprises

Applications for VAT credits refunds

must be submitted on the 10th day

following the end of partial lockdown

(exporters and large investors)

Applicants for VAT credits refunds are

invited to contact the competent tax

authority for the appropriate

organization

Suspension of corporate income tax

bimonthly advance instalments

05 06

07 08

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PwC

Francophone Sub Saharan Africa - Madagascar

30

April 2020Tax measures to Address COVID-19

The tax office opened in the morning for

half a day since 7 April 2020

Returns and payment of the Synthetic

Tax are deferred until 15 May 2020

The deadline for the declaration of

payments made in prior year to third

parties, due on 30 March 2020, is

extended until 15 May 2020 Tax audits and notices to third-parties

(ATD) are suspended until 31 May 2020

09 10

11 12

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PwC

Francophone Sub Saharan Africa

31

Key messages and Practical issues:

April 2020Tax measures to Address COVID-19

Uncertainty around automatic

extensions and deferrals vs

approval required

Efficiency of dealing with Tax

Administration remotelyCompliance Issues:

Payment & Filing

Adequacy of measures to

meet needs of low income

and vulnerable classes

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COVID -19 pandemic

Kenya

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PwC

East Market Area - Kenya

33

April 2020Tax measures to Address COVID-19

VAT rate dropped from 16% to 14%

Individual income dropped from 30% to 25%

Personal tax relief increased to KES 28,800

Corporation rate dropped from 30% to 25%

Promise to paid VAT refunds

Turnover tax down from 3% to 1%

Use of emails and video conferencing now

acceptable for dispute resolution

Tax payments continue being paid electronically

via iTax portal – no change in tax deadlines

Income tax exemptions removed

Capital allowances overhauled and ‘simplified’

VAT on transfer of business imposed

Zero rated VAT to VAT exemption increased

VAT on certain services imposed

No change in taxation of upstream oil

Capital allowance on petroleum storage and

pipeline reduced from 150% to 50% (then 25%)

01 02

0304

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COVID -19 pandemic

Uganda

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PwC

East Market Area - Uganda

35

April 2020Tax measures to Address COVID-19

Uganda announced extension for filing of

provisional tax returns and certain monthly

returns.

Taxpayers with MOUs requiring payments in

March and April may apply to restructure terms.

A 15-day extension to 30 April 2020 was granted

to taxpayers who are unable to file the March

monthly compliance returns by 15 April 2020

A two-month extension to 31 May 2020 was

granted to September year-end taxpayers who

were unable to file the FY19 final tax and FY20

provisional tax returns by 31 March 2020.

Ugandan taxpayers who make voluntary

disclosures in March and April 2020 and settle

the principal tax will have their penalty and

interest waived

01 02

0304

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PwC

East Market Area

36

Key messages and Practical issues:

April 2020Tax measures to Address COVID-19

Tax revenues will

reduce due to lower

economic activity

Investment in

technology by tax

authorities has come

in handy

The informal sector

and specific sectors

like tourism need

specific support, not

just tax reductions.

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COVID -19 pandemic

Angola

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PwC

South Market Area - Angola

38

April 2020Tax measures to Address COVID-19

• Deadline for filing company income tax returns extended: (i) Group B from 30 April to 29 May

2020, (ii) Group A from 31 May to June 30 2020.

• Q2 2020 Employer Social Security contributions (8%) postponed. Payable in 6 months

interest-free instalments from July-December

• Employee SS contribution (3%) in the months of April, May and June are to be transferred to

the employee

• Companies granted a 12-month tax credit on the value of VAT incurred on the import of

capital goods and of raw materials that are used for the production of goods from the basic

basket and other priority goods of national origin.

• Real Estate Income Tax payments can be made in 4 instalments - April, June, August, and

October.

• Tax Authorities have implemented reduced business hours & provided a support center

contacts and remote channels for taxpayers.

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PwC

South Market Area - Angola

39

April 2020Tax measures to Address COVID-19

• An exemption from VAT, customs duties and any other fees due for supply of services is

granted on the import of goods used in containing COVID-19.

• Imported (and locally produced) goods donated for the prevention and expansion of

COVID-19, are considered as a deductible cost for the purposes of Corporate Income Tax.

• Statute of Limitation period is suspended during the emergency period.

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COVID -19 pandemic

Mozambique

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PwC

South Market Area - Mozambique

41

April 2020Tax measures to Address COVID-19

• Deadlines for judicial and administrative proceedings are suspended for as long as the State

of Emergency remains in force

• All tax audits have been suspended

• Amnesty for fines and interest resulting from lack of or delay in payment of social security

contributions due before 23 April 2020, provided the regularization is made until 23 July 2020

• The issuing of tax registration numbers NUITs is suspended

• Tax compliant businesses with a turnover of less than MZN 2,5 million in 2019 are eligible to

a waiver of advance payments due in May, July and Sep 2020 re 2021 FY

• Until 31 Dec 2020, food commodities, medicines and other essential goods are allowed to

clear customs with payments of VAT and custom duties being deferred to maximum period

of 90 days, post-clearance

• Until 31 Dec 2020, Taxpayers with recognized VAT credit can offset it against other taxes.

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COVID -19 pandemic

South Africa

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PwC

South Market Area - South Africa

43

April 2020Tax measures to Address COVID-19

Tax return filings (apart from carbon tax) are required as normal, i.e. filings (and payments due)

should be timely.

• Tax compliant businesses with a turnover of less than R100 million will be allowed to defer

a proportion of a) PAYE liabilities over the next four months and b) provisional corporate

income tax payments without penalties or interest over the next six months.

• Larger businesses may apply directly to SARS to defer tax payments without incurring

penalties. Smaller business may also request more relief.

• Measures announced in the 2020 Budget to broaden the corporate income tax base by (i)

restricting net interest expense, and (ii) limiting the use of assessed losses will be

postponed by at least 1 year .

• Taxpayers who donate to the Solidarity Fund will be able to claim up to an additional 10% as

an income tax deduction. Employees' tax relief is available for donations to the Solidarity

Fund of up 33.3% of the monthly salary.

• From 1 May 2020, there will be a 4 month holiday for Skills Development Levy contributions

(1% of total salaries) to assist all businesses with cashflow.

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PwC

South Market Area - South Africa

44

April 2020Internal

• Wage subsidies - Companies that are in distress (not operating for at least 3 months)

because of COVID-19, will receive wage payment through the Temporary Employee Relief

Scheme.

• A tax subsidy of up to R750 per month will be provided for the next 4 months to those

private sector employees earning below R6,500.

• VAT refunds to be fast-tracked. Smaller VAT vendors that are in a net refund position will be

temporarily permitted to file monthly instead of once every two months.

• An extension of time has been granted for the timeframes for obtained prescribed

documents relating to the export of goods. Essential goods may only be exported under an

ITAC permit.

• The importation of ‘critical supplies’ (as listed by ITAC) qualifies for exemption from import

VAT and a full rebate of import duty.

• The importation of ‘essential goods’ (as listed) qualify for import VAT exemption. The

current list of ‘essential goods’ includes fuel (including coal and gas).

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PwC

South Market Area - South Africa

45

April 2020Internal

• Payment of excise taxes on alcoholic beverages and tobacco products, due in May 2020 and

June 2020, will be deferred for 90 days. Deferral may be applied to other items as well.

• Three-month deferral for filing and first payment of carbon tax liabilities.

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COVID -19 pandemic

Namibia

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PwC

South Market Area - Namibia

47

April 2020Internal

Namibia - taxpayers to enjoy accelerated payment of overdue and undisputed VAT & Introduction

of tax-back loan scheme for non-mining corporates

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PwC

South Market Area

48

Key messages and Practical issues

April 2020Tax measures to Address COVID-19

Meeting tax

compliance

deadlines

Reduced / deferred

tax payments

(reputational risks)

Various incentives

and restrictions –

need to stay abreast

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COVID -19 pandemic

Algeria

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PwC

North Market Area - Algeria

50

April 2020Tax measures to Address COVID-19

• Postponement deadlines for filling annual Corporate Income Tax declarations for the

companies under “DGE” scope until 31 may 2020. For other taxpayers the deadline is fixed

to 30 June 2020. The CIT liquidation balance is due 20 days later. (i.e. 20 June or 20 July).

TPD filling date is aligned with that of CIT annual return.

• Postponement of payment and filling of monthly tax returns “G50” and “G50 ter”, of

February, March and April 2020 up to 20 may 2020. Postponement of the 1st CIT/PIT

instalment to 20 June 2020. Postponement of Annual Personal Income Tax declaration G

N°01 to 30 June 2020 instead of 30 April 2020.

• Postponement of payment of social security contributions CNAS due for 2020 first quarter by

30 days, (i.e. 30 May 2020 instead of 30 April 2020). CASNOS contribution is postponed by

90 days, i.e. 30 September 2020.

• Suspension of taxation of unallocated profits - provided for in the provisions of Article 15 of

the Finance Act for 2020. Deferral of the application of zero rate VAT instituted by art. 42 of

the LF 2020.

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PwC

North Market Area - Algeria

51

April 2020Tax measures to Address COVID-19

• Tax on foreign partner's remuneration: The deadlines for declaring and paying the instalments

by SONATRACH (on the 25th of the month) and the liquidation balance (before April 30th of

year N+1) are maintained and are not affected by this deferral.

• Additional Income Tax (ICR): Filing date is scheduled for April 30 of year N+1, by way of G

N°04 (same deadline as that of common tax regime annual CIT return ); Postponement of

the deadline for the annual declaration to 31 May 2020 for companies subject to the DGE;

Thus we believe that the Additional Income Tax declaration may be concerned by this

postponement

• Other taxes: With regard to the other taxes under the hydrocarbon tax regime that are paid

monthly, notably the hydrocarbon royalty, the tax on oil revenues, no extension of time is

provided for by the tax administration (DGI) or the hydrocarbon authority (ALNAFT).

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COVID -19 pandemic

Morocco

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North Market Area - Morocco

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April 2020Tax measures to Address COVID-19

• A deadline extension was granted for the CIT return, additional CIT due for fiscal year 2019

and the first instalment due for the current fiscal year till 30 June 2020

• This extension applies for companies with turnover not exceeding MAD 20 million.

• Companies with a turnover of MAD 20m and above, suffering significant harm due to the

drastic drop in activity and facing financial difficulties, should formally request form the

ministry of finance a deferred payment of tax.

• The Economic Monitoring Committee (CVE) suspended payment of employer social

security contributions until 30 June 2020 for certain companies and independent

professions facing difficulties

• Tax audits are suspended until June 30th, 2020.

• Employees in temporary work stoppage registered under the National Social Security Fund

(“CNSS”) and working for companies facing difficulties, will enjoy certain benefits.

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PwC

North Market Area - Morocco

54

April 2020Tax measures to Address COVID-19

• The CVE decided to exempt from Individual Income Tax any additional compensation paid to

employees (affiliated to the CNSS) by their employers, in the limit of 50% of the average net

monthly salary.

• CIT levied on hydrocarbon revenues provided in the hydrocarbon code follows the same

modalities of payment as of those prescribed for corporate income tax, the CIT

postponement above can be relevant to the hydrocarbon sector as well

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COVID -19 pandemic

Tunisia

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PwC

North Market Area - Tunisia

56

April 2020Tax measures to Address COVID-19

Deadline for filing the corporate income

tax return due on the results for the

fiscal year of 2019 is extended until

May 31, 2020, except of companies

subject to corporate income tax at a

rate of 35%.

VAT due on the import, manufacture

and sale of personal protection

products as well as on their inputs is

reduced to 7%

Deadline for filing the monthly tax

declarations extended to March 19,

2020.

Certain penalties as well as the

circulation tax were also extended till

the end of April.

Inputs for the manufacture of the

individual protection products shall be

exempt from customs duties and any

other taxes and duties due on

importation. Individual protection

products are exempt from Industrial

Competitiveness Development Fund.

01 02

03 04

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PwC

North Market Area - Tunisia

57

April 2020Tax measures to Address COVID-19

Penalties for late recovery of

established debts extended from 1 April

2020 till 15th day post lockdown

The modalities of payment and

declaration under CIT purposes for

hydrocarbon-derived income differs

from those introduced in the common

law, therefore, the deadline relief

measures should not apply as per the

COVID-19 adaptive tax measures.

Tax audit and ex officio taxation

procedures shall be suspended during

the period from 23 March 2020 till 15th

day post lockdown

Application of the late payment

penalties for the payment of the tax

suspended for the period from 1 April

2020 until 30 June 2020

05 06

07 08

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COVID -19 pandemic

Egypt

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PwC

North Market Area - Egypt

59

April 2020Tax measures to Address COVID-19

• Deadline for filing individuals' income tax returns extended from 1 April to 16

April 2020

• Three-month extension for the payment of property taxes for companies in the

industrial and tourism sector. The taxes payable in (6) monthly installments.

• Exemption from taxation of capital gains on securities listed on the Egyptian

stock exchange (EGX) for Egyptian residents extended from 17 May 2020 to 1

January 2022

• Exemption from taxation of capital gains on securities listed on the Egyptian

stock exchange (EGX) for non-residents will be made permanent

• On spot transactions on the EGX will be exempt from stamp duty

• Withholding tax on dividends paid by companies listed on the EGX will be

reduced from 10% to 5%

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North Market Area - Egypt

60

April 2020Tax measures to Address COVID-19

• Stamp duty on transactions on the Egyptian stock exchange (EGX) will

be reduced from 0.15% to 0.125% for non-residents for both buyer and

seller

• Stamp duty on EGX transactions will be reduced from 0.15% to 0.05%

for Egyptian residents; for buyers and sellers

• Documents, such as commercial invoices, would be accepted without

being accredited by the Chambers of Commerce (this usually being a

requirement)

• Certificates of origin would be accepted without authorization from the

Egyptian Embassy abroad

• Citizens filing taxes online will not be charged the subscription fee for the

use of the online filing portal

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North Market Area

61

Key messages and Practical issues:

April 2020Tax measures to Address COVID-19

Efficacy of the

measures to achieve

desirable objectives

Reduced

bureaucracy on

essential imports

Leveraging on

technology

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Questions and Contributions

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Africa Energy and Utilities

Publication 2019

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Closing remarks & wrap up

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PwC

You are not alone. We are here to help.

65

April 2020Tax measures to Address COVID-19

Proactive customs and tariff strategies

Global trade policy consulting

Regulatory risk remediation

Global structuring

Value chain transformation

Transfer pricing planning

Tax and tariff-efficient supply chain strategies

Global trade services

Global mobility consulting

Immigration services

Tax planning

Hedging and cash planning

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pwc.com

Thank you

© 2020 PwC. All rights reserved. Not for further distribution without the permission of PwC. “PwC” refers to the network of member firms of PricewaterhouseCoopers

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any other member firm nor can it control the exercise of another member firm’s professional judgment or bind another member f irm or PwCIL in any way. 715220-2020