Cabo Verde: Special Economic Zone for Technologies
Carbo Verde has approved the legislation which regulates the newly created Special Economic Zone for Technologies.
Decree-Law no. 15/2022, of 12 May, published in the Official Gazette, creates and regulates the Special Economic Zone for Technologies (“Zona Económica Especial para Tecnologias” or “ZEET”) – PWC Tax Summaries
ZEET is located in the ‘Digital Islands Technological Park’, also covering the contiguous technological real estate areas of “Castelon Vale”, in Praia, and “Julion Vale”, in Mindelo, and is the center of all digital strategy in Cabo Verde-China-Lusophone Briefs
The fundamental purpose of ZEET is to target the technology entities developing activities having the following characteristics:
- High potential for wealth creation, added value and jobs, particularly in the youth segment;
- Foster export particularly in the African sub-region;
- Promote a culture of innovation, fostering creativity at the level of technological Research & Development;
- Facilitate the development of digital services;
- Create favourable conditions for an incubation hub for technology startups.
Besides being granted financial incentives, entities authorised to operate in the ZEET are granted the following tax and customs benefits:
The entities operating in the ZEET are required to comply with the tax obligations foreseen in the tax law in order to take advantage of financial incentives as well as the tax and custom benefits.
Some of such benefits include;
- Reduced corporation tax (IRPC) rate of 2.5%;
- Exemption from VAT;
- Exemption from Stamp Tax on the funding related with the investment;
- Exemption from property tax (IUP) etc.
The ZEET regime entered into force on 13 May 2022 and is projected to be in operation until 2030.
Ghana: Electronic Transfer Levy
The Ghana Revenue Authority (GRA) has announced May 1st, 2022 as the implementation date for the Electronic Transaction Levy (E-Levy).
In a notice published in the newspapers, the GRA said the decision was influenced by the passage of the E-Levy Bill by Parliament. The E-Levy will impose 1.50% on all electronic transfers.
The Electronic Transfer Levy (E-Levy) is an innovative way to capture revenues within the digital space. Below are the rationale for E-Levy
Revenue Mobilisation: To enhance revenue mobilization by broadening the tax base to include a large portion.
Support Entrepreneurship: To raise revenue to support entrepreneurship, youth employment, provision of digital infrastructure and cyber security and provision of road infrastructure.
Increase Ghana’s Tax to GDP: To help increase Ghana’s Tax to GDP Ratio from approximately 12.4% to 20% in 2024.
National Development: To provide an opportunity for everyone to contribute towards national development.
The transactions covered by E-levy include mobile money payments, bank transfers, merchant payments and inward remittances. The levy is expected to be borne by the sender unless it relates to an inward remittance in which case the receiver of the funds would be liable for the levy. The measure commenced in February 2022 and is being administer by the Ghana Revenue Authority (GRA) via institutions licensed by the Bank of Ghana (BoG) to facilitate electronic payments (i.e. fintechs, telcos, banks and other financial institutions). The intention of Government for this measure is to widen the tax net by roping in the informal sector. Government projects to rake in tax revenue of about GH¢6.96 billion in 2022, and about GH¢26.90 billion from 2023 to 2025 after the implementation of the E-levy, according to PwC’s Budget Digest (2022).
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