In ATAF’s view it is very important that African countries ensure they are taxing digital firms that are operating in their country where under current tax rules those firms are not taxed as they have no taxable presence.
These Suggested Approaches include material that was published by the Inclusive Framework in the Agreed Administrative Guidance. Recognising that countries may wish to implement a Domestic Minimum Top-up Tax as a priority, each of the 3 approaches include a regulation-making power.
Over the years, ATAF has done a lot of work on improving the implementation of tax transparency in Africa. The proposed EOI strategy will build on this foundation and with the EOI TC as its champions, allow for exchanging information as a tool to combat IFFs.
ATAF as guided by the African Union released a Suggested Approach for a Domestic Minimum Top-up Tax. This Policy Brief sets out the policy issues African countries should consider in adopting a DMTT and placing the DMTT in its wider context.
African countries have identified at least €1.69 billion in additional revenues since 2009, through voluntary disclosure programmes, exchange of information and offshore investigations. Tax Transparency in Africa 2023 offers detailed insight into the experiences and practices of 38 African countries on transparency and the exchange of information for tax purposes.
In June 2020, the UN Committee of Experts on International Cooperation on Tax Matters (“UN Committee”) released a proposal by one of its drafting groups for an additional provision (Article 12B) in the UN Model Tax Convention...
Many ATAF members have reported difficulties in taxing highly digitalised businesses operating in their countries.
Many African countries have reported that a large number to Drafting Permanent Establishment Legislation of non-resident enterprises carry on business activities in their country without establishing a legal entity in the country.
ATAF members have reported that the use of third party and related party interest is one of the most prevalent and simple of the profit-shifting techniques used in Africa and poses a significant risk to African tax bases.
How countries approach taxation has a direct impact on their economic growth and development. Taxation is key to a government’s ability to deliver essential services to their citizens and making long-term investments in public goods.