Nigeria, Cameroon, 8 Others Pay Highest Corporate Tax in Africa
- According to a report, Cameroon pays the highest tax among African countries
- Also, Nigeria’s corporate tax of 30% indicates one of the highest in Africa
- The report established that Africa has some of the least competitive tax rates in the world
The corporate tax rate is a significant source of revenue for governments around the world. Globally, corporate tax rates vary and reflect the distinct economic requirements of every nation.
It is a charge that the government levies against a company's income. Its amount is determined by the net profits businesses make from operating their businesses, often over one fiscal year.
Source: Getty Images
Tax rates in Africa is less competitive
Natural resource-rich nations, for instance, frequently derive the majority of their tax revenue from high corporate taxes on oil and natural gas corporations, allowing other industries to thrive in a setting with comparatively low taxes.
PAY ATTENTION: Join Legit.ng Telegram channel! Never miss important updates!
Despite having some of the least competitive tax rates of any continent, Africa has a lot of variety among the various nations. Nigeria’s corporate tax rate is among the African countries with the highest paid corporate income tax.
According to Legit.ng's earlier report, Nigeria’s 2022 Finance Act, which became effective January 2023, contains a lot of new taxes.
The move to implement five new taxes covering telecom, beverage, and car was perceived as wrong timing by experts.
Meanwhile, Cameroon ranks number one on the list of countries with the highest corporate tax as compiled by OnDeck, according to a Business Insider report.
Countries are listed as follows:
Cameroon – 30.8%
Cameroon now ranks among the nations with the highest corporation tax rates after its company tax rate rose to 30.8% and stayed there ever since.
Nigeria – 30%
Nigeria still has a high corporation tax rate of 30%, even though the country's economy has been negatively impacted in recent years due to inflation. Read more on the types of tax in Nigeria.
DR Congo – 30%
The amount that a DRC firm pays for technical support is subject to a 30% turnover tax. For businesses with mining or quarry titles, the corporate income tax rate is 30%.
Tanzania – 30%
Even though East Africa has some of the highest business tax rates in all of Africa, the nations in the area differ significantly. The typical tax rate in Tanzania is about 30%.
Ethiopia – 30%
Ethiopia is another East African country with a high corporate tax rate in the region, with a 30% rate.
Kenya – 30%
Kenya ranks first on the list of nations with the highest corporation tax rates in East Africa, with several entries.
South Africa – 28%
South Africa’s average corporate tax rate has consistently hovered at the 28% mark over the past decade.
Angola – 25%
The government generates the bulk of its revenue from national oil and gas companies and, as a result, offers low corporate tax rates.
Cote d’Ivoire – 25%
The average company tax rate in Cote d'Ivoire is 25.0%, around average for the world.
Ghana – 25%
Over the past ten years, Ghana's average corporate tax rate has remained around 25%.
Nigeria moves to end taxes on tomatoes, yam, other raw food items
The Chairman of the Joint Tax Board (JTB), Muhammad Nami, says the Nigerian government has concluded plans to stop taxes on Tomatoes and other raw food items as moves to reduce their costs, according to Legit.ng recent report.
Nami disclosed this at the 153rd JTB meeting held in Abuja recently.
Source: Legit.ng
