GOG’s 2015 Tax Policy Directions – Highlights

GOGs 2015 Tax Policy Direction:Highlights - by Benjamin Nanor-StarMarc Research

Posted on April 13, 2015 at 8:20am

Income and Property Sector

• Maximum income tax rate for free zones entities to be revised from 8% to 15%;
• Extension of 5% National Fiscal Stabilisation Levy beyond December 2014;
• Increase in withholding tax rate on directors fees from 10% to 20%; and
• Reduction of exemptions granted in Government loan agreements.

Goods and Services Sector

• Introduction of 5 % flat VAT rate on real estate and enforcement of VAT on financial services;
• Removal of VAT on specified locally produced pharmaceuticals and some of its inputs;
• Replacement of the VAT Refund Account with a General Refund Account;
• Introduction of 17.5% Special Petroleum Tax (already enacted);
• Removal of import duty and VAT on inputs for the production of machetes, exercise books and textbooks and Removal of import duties on smartphones;
• Enforce 1-2% special import levy till 2017;
• Increase in tobacco excise duty rate to 175%; and
• Reversal of the ad valorem excise tax basis on certain petroleum products to specific tax basis

Tax Administration

• Applying self-assessment scheme to all tax payers;
• Making TIN a requirement for all port transactions

StarMarcs’ Roles

• helping you fully consider these changes in your 2015 budget;
• providing you with a comprehensive tax health check assessment