The Zambian government has terminated the Avoidance of Double Taxation Agreement with Mauritius and will initiate negotiations of a new Agreement which would introduce shared taxing rights and anti-abuse clauses. The decision to terminate the agreement was made at a Cabinet meeting held at Mulungushi International Conference Centre where other decisions such as the issuance of an K8 billion COVID-19 bond were made.
chief government spokesperson Dora Siliya
“Cabinet also approved the termination of the Avoidance of Double Taxation Agreement between the Government of the Republic of Zambia and the Government of the Republic of Mauritius and initiate negotiations of a new Agreement which will introduce shared taxing rights and anti-abuse clauses,” chief government spokesperson Dora Siliya said of the decisions made in a statement.
“Cabinet resolved to terminate the Agreement which came into force on 15th June, 2012 as the Agreement deals with income from a number of specific sources, such as business income, dividends, interest and royalties.”
She stated that the tax treaty that existed between Zambia and Mauritius gave exclusive taxation in the country of residence of the receipt of the income.
“As such, Zambia does not retain taxing rights to tax dividends, interest and royalties arising in Zambia and payable to residents of Mauritius,” Ms Siliya stated.
Meanwhile, Cabinet further deliberated on the International Monetary Fund virtual meetings with Government from 22nd June to 1st July, 2020 to commence Programme discussions.
“Cabinet allowed the Minister of Finance to go ahead and hold policy discussions with the IMF because Cabinet is of the view that, in line with its governing laws, the IMF provides policy advice, technical and financial assistance to member countries and that it was necessary for Government to continue such discussions with the IMF,” Ms Siliya stated.
Cabinet also deliberated on the engagement of Lazard Frères of France as financial advisors and Messrs White and Case of the United States of America as legal advisors to the Republic of Zambia in relation to the liability management of its debt portfolio.
“The engagement of creditors that are owed money by Government is an essential strategy to address the country’s prevailing debt sustainability and fiscal challenges, especially in view of the negative impacts of the COVID-19 pandemic which has further constrained the Treasury’s resources envelope,” Ms Siliya stated.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions. He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance. He is also an award-winning writer.
The D-day is here. From today, all businesses in South Africa, including startups which process enormous amount of personal data must obey a new law in order to remain in business. Cyril Ramaphosa, South Africa’s president recently announced that the operative provisions of the Protection of Personal Information (PoPI) Act, 2013 will come into force, today, July 1, 2020
South African president Cyril Ramaphosa
Here Are Key Things South African Startups Processing Public Data Must Know About The New Law
What Is Meant By Protection of Personal Information (PoPI)?
The PoPI is now South Africa’s chief privacy law and it stands for Protection of Personal Information. The law aims to give effect to the constitutional right to privacy, by safeguarding personal information when processed by any person, subject to justifiable limitations. It also aims to regulate the manner in which a person’s information may be processed; and to that effect, it prescribes the minimum requirements for the lawful processing of personal information.
What Constitutes Personal Information Under The New Law?
A range of information is considered personal information under the new data law in South Africa Hence, personal information is any information that relates to a human being or company or businesses registered in South Africa, especially as it concerns their:
race, gender, sex, pregnancy, marital status, national, ethnic or social origin, colour, sexual orientation, age, physical or mental health, well-being, disability, religion, conscience, belief, culture, language and birth of the person;
information relating to the education or the medical, financial, criminal or employment history of the person;
any identifying number, symbol, e-mail address, physical address, telephone number, location information, online identifier or other particular assignment to the person;
the biometric information of the person;
the personal opinions, views or preferences of the person;
correspondence sent by the person that is implicitly or explicitly of a private or confidential nature or further correspondence that would reveal the contents of the original correspondence;
the views or opinions of another individual about the person; and
the name of the person if it appears with other personal information relating to the person or if the disclosure of the name itself would reveal information about the person
Which Businesses Does The New Law Apply To?
The law is applicable to all local and foreign companies which process (i.e. whether by way of collecting, using or otherwise handling) personal information in South Africa.
What Are Required Of Businesses Under The New Law?
A lot of things are expected of businesses under the new law.
Under the new law, owners of personal information reserve the right to choose the way information about them are used by any business or organisation; and their consent must be sought before such use. They must also been informed that their personal information has been acquired by any organisation. They also have the right to request the destruction or deletion of their personal information. They can also reasonably refuse to grant permission for use of their personal information. They can also refuse to allow their information, such as their email addresses, etc., to be used for direct marketing by means of unsolicited electronic communications. The owners of the information may withdraw this consent at any time, and where such happens the information shall continue to remain lawful where it has fulfilled the relevant provisions of the law.
However, such protection does not extend to information used only solely for journalistic, literary or artistic expression, provided that such information was used to exercise the right to freedom of expression, or where use is permitted by law, or the processing of such information is in public interest.
The information so processed shall not be retained for longer time than reasonable unless there is consent for continued retention; the retention has been permitted by the parties under their contracts; or permitted by law; or retained for historical, statistical or research purposes.
No person in South Africa may transfer another person’s personal information to a third party who is in a foreign country without their consent, unless a contract between affected persons permits so or the transfer is for the benefit of the owner of the information, and provided the law applicable in the foreigner’s country guarantees similar protection for personal information use in South Africa.
With this new data law, South Africa will be joining other countries in the world in their quests to regulate large volumes of personal data now available in public spaces.
Who Is The Regulator Under The New Law And When Will They Start Compliance Monitoring?
Under the new law, the regulator is the Information Regulator and it has jurisdiction throughout South Africa. The Regulator will also monitor and enforce compliance with the law. It also handles complaints about alleged violations of the protection of personal information by businesses.
Anybody using any personal information in South Africa must also obtain approval from the Regulator prior to such use where it processes the information for the purposes of credit reporting; transfers or link special personal information to any person; processes information on criminal behaviour or on unlawful or objectionable conduct on behalf of third parties;
By the terms of the law, businesses have 12 months from July 1, 2020 to become compliant. The implication of this is that there will be no sanctions for non-compliance until July 1, 2021. This may however be extended by South Africa’s Minister of Justice and Correctional Services, on request or of his or her own accord and after consultation with the Regulator, which period may not exceed three years
What Are The Penalties For Non-Compliance?
The fines and penalties vary depending on the offence, with a maximum of 10 years in prison or a R10 million ($577k) fine.
Does The New Law Provide Any Benefit To Businesses?
Definitely! Apart from protecting consumers, the new law will help businesses value the data in their possession, since the cost of data acquisition will most likely increase. It will therefore provide businesses with the opportunity to analyse and have more control over the data handled within their organisations and to better understand their purposes.
For more information about the new law, download it here. (PDF)
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions. He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance. He is also an award-winning writer.
Nigeria now has a new way of reminding company owners their tax obligations to government. Going forward, all certificates of company registration issued by the country’s Corporate Affairs Commission, in charge of corporate affairs will boldly bear their tax identification numbers.
“This is to inform our esteemed customers that as part of the ease of doing business initiative, certificates of incorporation of companies registered under part A of CAMA will henceforth carry tax identification numbers issued by the Federal Inland Revenue Service (FIRS),” the corporation said.
“This has dispensed with the need for companies to apply for the issuance of tax identification numbers from FIRS after incorporation.”
The statement said that certificates of incorporation issued by the CAC would now carry the numbers.
However, it should noted that since all small businesses, and not companies, are covered in Part B of the country’s major law governing the operation of businesses, they would not be affected by the new policy.
However, It Should Be Noted That Even Though Every Company In Nigeria Is Now Automatically Issued With A Tax ID, Small Businesses Which Registered As Companies Will Not Be Taxed Under The Country’s New Finance Law:
Under the finance law, small businesses with annual turnover of less than N25m will be exempted from Companies Income Tax. However, to benefit from such incentive, such small businesses must first register for taxation in Nigeria and must continue to file tax returns during the period their profits are below the tax N25mn threshold
A lower Corporate Income Tax rate of 20% ( as against 30%) will however apply to medium-sized companies with turnover between N25m and N100m, to benefit from such incentive, they must first register for taxation in Nigeria and must continue to file tax returns during the period their profits are between the N25m and N100m threshold.
For companies or businesses that pay their tax dues early, a 2% deduction bonus on tax payable is given in the case of medium-sized companies between N25m and N100m and 1% deduction on payable tax is given for large companies from N100m and above.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions. He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance. He is also an award-winning writer
Zimbabwe on Friday, June 26 2020, abruptly suspended all mobile money transactions, the most widely used platform to make and receive payments in the crisis-ridden country, claiming the move would tackle crime and economic sabotage. The government also suspended all trade on the country’s stock exchange, which it accused of being complicit in illicit financial activities.
President Emmerson Mnangagwa
“Government is in possession of impeccable intelligence … whereby mobile-based phone systems … are conspiring with the help of the Zimbabwe Stock Exchange — either deliberately or inadvertently — in illicit activities that are sabotaging the economy,” it said.
Here Is What You Need To Know
An information ministry statement said government was suspending with immediate effect “all monetary transactions on phone based mobile money platforms in order to facilitate intrusive investigations”.
In 2016, mobile money payments reportedly accounted for more than 80 per cent of all electronic payment transactions.
The shock announcement coincided with month-end when people receive and withdraw their salaries via mobile phone banking.
In a country critically short of bank notes, the move will likely shut most general transactions from payment for groceries and services such as electricity.
Suspending mobile banking transactions in Zimbabwe will have severe effects on startups in the country
President Emmerson Mnangagwa, who took power in 2017 following a military coup pledging to revive the moribund economy, now blames the economic malaise on unnamed “political detractors”.
“We are fully cognisant that this battle is being fuelled by our political detractors, elite opportunists and malcontents who are bent on pushing a nefarious agenda,” he said this week.
Suspending mobile banking and stock trading in Zimbabwe is coming at a time when the country is in the throes of its worst economic crisis in more than a decade, The Business Timesreports. The country is short of cash and basics including fuel and the staple cornmeal. According to new data, annual inflation was inching closer to 800 per cent in April.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions. He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance. He is also an award-winning writer.
