Trade under the African Continental Free Trade area is now underway and 36 countries, and counting, have ratified the agreement. Countries including South Africa and Ghana are early beneficiaries of the agreement due in part to their existing customs infrastructure. The agreement has many benefits and is expected to drastically boost the continent’s post-pandemic recovery, but there are still many challenges to overcome.
Welcome to our first quarter issue of the Private Wealth Newsletter. Our featured insight for this issue is a discussion of the passage of the Corporate Transparency Act by the United States to introduce federally-mandated beneficial ownership reporting obligations for US corporations and limited liability companies. We also include insights…
In terms of both market value and volume, South Africa is reported to be one of the top two markets for cryptocurrencies in Africa, alongside Nigeria. It was therefore only a matter of time before the South African Revenue Service joined the likes of the Internal Revenue Service in the United States and Her Majesty’s Revenue & Customs in the United Kingdom in cracking down on cryptocurrency traders and establishing appropriate tax frameworks.
In brief The South African Reserve Bank (SARB) has begun to implement a new capital flow management system in South Africa, with changes starting to come through in early 2021. In a circular issued on 4 January and effective from 1 January 2021, the SARB announced that the full “loop…
The United States (US) President Elect Joe Biden and his new administration are expected to take a multilateral approach to foreign policy, easing tensions and increasing engagement with allies. Trade issues are also expected to be a top priority for the Biden administration and under Biden, US engagement with African…
South Africa President Cyril Ramaphosa outlined the country’s Economic Recovery Plan on in October 2020, during which he explained that if just 10% of South African’s imported goods (excluding oil) could be manufactured locally, the country would add 2% to its Gross Domestic Product (GDP). Further, if South Africa could supply 2% of it manufactured goods to its African peers, it would add 1.2% to its GDP. In this regard, Virusha Subban, Partner Specializing in Customs and Trade at Baker McKenzie in Johannesburg, explains how South Africa could benefit from the African Continental Free Trade Agreement.
The South Africa Revenue Service has published a Notice clarifying the customs declaration process under section 64D of the Customs and Excise Act. The Notice outlines the conditions under which bonded goods must be imported into South Africa. Prenisha Govender, Associate in the Tax Practice at Baker McKenzie in Johannesburg, provides the key points.
The COVID-19 national lockdown has resulted in more employees having to work from home, a situation that could result in an indefinite arrangement for some. However, in terms of the Income Tax Act, employees must meet certain conditions to be able to claim a tax deduction for home office expenses. Prenisha Govender, Associate in the Tax Practice at Baker McKenzie in Johannesburg, assesses the fairness of these stipulations, considering changes due to the pandemic.
In brief The African Union announced in August 2020 that negotiations around the first commercial trade deal under the African Continental Free Trade Area Agreement (AfCFTA) would be finalized by January 2021, and that negotiations would take place via a new African Virtual Trade-Diplomacy Platform. Virusha Subban, Partner specializing in…
In brief The National Treasury in South Africa has implemented a deferment of excise duties in respect of payments, for excise compliant businesses in the tobacco and alcohol industries. This is due to the detrimental effect of lockdown restrictions on the sale of alcoholic beverages and tobacco products. Virusha Subban,…