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.
As discussions continue in the Inclusive Framework, including the development of further administrative simplifications, additional provisions may be added to this Suggested Approach. This is likely to include safe harbours that will reduce the compliance burdens for both tax administrations and taxpayers in applying the rules.
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.