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NAMIBIA BUDGET SPEECH HIGHLIGHTS

The Minister of Finance, Hon. Calle Schlettwein, presented the 2018/19 Budget Speech to Parliament on 7 March 2018.

  • The budget deficit is estimated at 4.5% of GDP in 2018/19, compared to 5.4% in 2017/18 and an average of about 3.6% over the Medium Term Expenditure Framework (MTEF).
  • Inflation has been on a downward trend, slowing from 6.7% in 2016 to 6.2% in 2017 and now to 3.6% in January 2018 – in part due to weak domestic demand and a stronger currency.
  • Total revenue for 2018/19 is estimated at N$56.70 billion.
  • A total of N$ 972.02 million was collected from the recovery of outstanding tax arrears through the Tax Arrear Recovery Incentive Program (tax amnesty) that was announced in January 2017 and continued until 31 July 2017.
  • Old age pensions are increased by N$50 to a monthly grant of N$1250.
  • The main Tax proposals include:
    • To reduce the lower individual tax bracket from 18% to 17% and introduce new tax rates of 39% and 40% for individuals earning over N$1.5 million and N$2.5 million respectively.
    • To introduce a 10% dividend tax for dividends paid to residents.
    • To subject income derived from commercial activities by charitable, religious, educational and other types of institutions under Section 16 of the Income Tax Act to normal corporate tax.
    • To repeal of the Export Processing Zone Act and introduction of the Special Economic Zones, with a sunset clause for current operators with the EPZ status.
    • Namibian residents will now have to declare all income earned from foreign sources in their annual tax returns.
    • To introduce VAT on proceeds on the sale of shares or membership in a company owning commercial immovable property.

 

  • Proposed new Tax Tables

Contact our legislation team at info@crs.co.za if you require any additional information.

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GHANA 2017/18 BUDGET STATEMENT

The Minister of Finance, Ken Ofori-Atta, presented the Budget Statement and Economic Policy of The Government of Ghana for the 2018 Financial Year to the parliament on 15 November 2017.

Highlights of the budget speech summarized:

  • The overall GDP growth is estimated at 7.9% at the end of 2017, up from the original forecast of 6.3%
  • The overall budget deficit on cash basis was 4.5% of GDP in September 2017 against a target of 4.8% of GDP
  • Inflation was 11.6% at the end of October 2017, compared to 15.4% at the end December 2016

Tax Measures:

  • The implementation of the National Identification Scheme, the National Digital Addressing System, Tax Identification Number System and implementation of the presumptive tax system to broaden the tax base to include more taxpayers.
  • Through a National Entrepreneurship and Innovation Plan, Government will provide a holiday tax period to start-ups or early stage businesses of Ghanaian entrepreneurs who are 35 years or younger.
  • Government will introduce Voluntary Disclosure Procedures (VDP) in the Revenue Administration Act, 2016 (Act 915) to waive penalties on voluntary disclosures and payment of unreported and understated taxes by taxpayers. However, taxpayers will be required to arrange to pay such taxes within a period agreed with the Commissioner-General of GRA.
  • Reviewing of the current income tax thresholds by pegging the tax-free threshold to the current minimum wage to protect low-income earners and ensure fairness in the income tax administration. Government intends to increase the monthly tax-free chargeable amount from GH¢216.00 to about GH¢261.36 for tax resident individuals.
  • As from January 2018 the minimum wage will be GH¢9.68 per day after the most recent increase in July 2017.

 

Contact our legislation team at info@crs.co.za if you require any additional information.

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