AFRICA: TAX AND CURRENCY CONTROLS IN INFRASTRUCTURE-BUILD PROJECTS
Tax should not be an afterthought in major infrastructure projects across Sub-Saharan Africa. Apart from the possible consequences of having to deal with disputes with the tax authorities, contractors could find themselves working for losses.
The difficulty with tax in relation to African infrastructure projects is that what applies in one jurisdiction does not necessarily apply in another. There may be similarities, but there will almost certainly be differences. Two types of tax in particular can derail infrastructure projects – VAT and withholding tax. Exchange controls can also be tricky to navigate.
We hosted a seminar that addressed these issues. Insights that could help infrastructure project owners, promoters and contractors involved in infrastructure development across the continent are summarised here.