If you’re investing, or thinking about investing, in the Ivory Coast, Zambia, or Angola, there’s important tax news on the horizon. Governments in these countries have either proposed or recently introduced new measures that could affect your bottom line. Here’s a quick rundown of what’s happening and what it might mean for you.
Ivory Coast: Proposed Tax Measures for 2025
- Withholding Tax on Share Sales Starting 1 January 2025 (pending final approval), there could be a withholding tax whenever shares change hands. We’re still waiting on the specifics, but this tax might affect how you plan your exits and restructure your holdings.
- Higher Corporate Tax for the Gaming Industry Gaming companies could see their corporate tax rate jump from 25% to 30%. If you’re in this space, expect tighter margins and think about how to keep operational costs in check.
- Increased Tax on Games of Chance, Casinos, and Slot Machines That separate levy on casinos, slot machines, and similar activities could climb from 5% to 7%. Again, more of your revenue could end up in government coffers.
Whether you’re in gaming or investing in shares, these changes may tweak your tax bill. It’s a good time to speak with local advisors, review existing structures, and figure out the most tax-efficient ways to operate.
Zambia: Changes Under Parliamentary Review
Zambia’s National Assembly is considering a series of tax tweaks that go beyond what was mentioned in the September budget speech. If these go through, they could reshape the investment landscape in a big way.
- Stricter Limits on Tax Loss Carry-Forwards Right now, mining companies can offset up to 50% of their losses over 10 years, while other sectors can offset 100% over 5 years. Under the new plan, everyone would be capped at 50% of taxable income, meaning it might take longer to recoup initial investments.? Any part of the loss that cannot be used within 10 years cannot be claimed after the 10 years.
- Rental Income Tax Hike If your rental income tops ZMW 800,000 ($28k) a year, expect your rate to jump from 12.5% to 16%. That’s a noticeable bump for property investors.
- Higher Property Transfer Tax This one’s moving from 5% to 8%, if the property is land, shares or intellectual property.? Higer rates apply to mining licences and mineral processing licences. If you’re buying or selling real estate, make sure you’re factoring in that extra expense.
- Changes to the Mobile Money Transaction Levy The levy is set to double, and the current exemptions are on the chopping block. Anyone who relies on mobile money (pretty much everybody these days) will see higher transaction costs.
- Export Duty on Precious Gemstones.? The 15% export duty that was suspended in 2019 has been reinstated.? This has been done by Statutory Instrument and took effect on 1 January 2025.
Between the tightening of loss carry-forwards and higher rates for property and mobile transactions, these proposed rules could hit your cash flow. A proactive approach, including scenario planning and chats with tax experts, can help you stay ahead of any surprises.
Angola: New Tax on Outbound Money Transfers
Angola’s also shaking things up with a brand-new tax on sending money out of the country. Here’s the scoop:
- Who’s Exempt? Dividend payments, interest, loan repayments, and direct payments to health or education institutions (think tuition fees or hospital bills) are all exempt. Also, if your company’s in the oil or diamond sector, you’re off the hook.
- Rates and Responsibilities Companies pay 10%, individuals pay 2.5%, calculated on the amount being transferred in Angolan currency. Your bank or payment provider will handle collecting and remitting this tax, so expect an added cost whenever you move funds across borders.
If you’re not exempt, every outbound transfer just got more expensive. That can affect everything from routine cash flow management to how you repatriate profits. It’s worth having a conversation with your bank or local tax advisors to avoid any hiccups.
What Does This All Mean For Investors?
- Keep an Eye on the Fine Print These proposals can (and often do) change before they become law. Stay in touch with local advisors and monitor official updates to avoid last-minute surprises.
- Assess Your Current Structure How are you set up in each country? Are you using loss carry-forwards extensively, or relying on cross-border transactions? Pinpoint areas that need a refresh or contingency plan.
- Engage Local Experts Rules can be interpreted differently on the ground, and the practicalities of complying with new taxes can vary. Good local advice is often the difference between smooth sailing and getting stuck with unexpected bills or penalties.
- Think Long-Term These changes might prompt a deeper look at your overall strategy. It’s not just about compliance in the here and now, it’s also about staying agile for whatever might come next.
Tax policies in Africa are moving targets, with governments looking to increase revenue and balance economic growth. On the bright side, timely awareness and good planning can help you stay ahead. Whether you’re in the Ivory Coast, Zambia, or Angola (or keeping an eye on all three), a proactive approach, plus the right guidance, will help you navigate these evolving landscapes and keep your investment plans on track.
Meet the author
Russell Eastaugh
Russell has extensive African experience, in particular in Nigeria and Uganda, and extensive experience of the betting industry. He is a Fellow of the Chartered Institute of Taxation of Nigeria. Contact Russell at [email protected].
