Recent studies show that the African continent is attracting
a growing amount of investments from foreign multinational
enterprises, but this positive development also increases the
number of challenges for businesses and governments.
The economic boom in the African continent is occurring
during an epoch of changes in the international taxation
landscape, triggered by the outcome of the BEPS Project. Within
this context, transfer pricing legislations plays an important
role, but African tax administrations have identified transfer
pricing as one of the most significant risks to their tax
During a four-day workshop in March 2017, the African
Minerals Development Centre (AMDC), together with the Minerals
and Energy for Development Alliance and the World Bank,
delivered the first of two regional workshops on transfer
pricing in Africa’s mineral sector.
Charles Akong of the AMDC noted that "transfer mispricing
represents one of the key issues which contribute to African
countries missing out on the full benefits of their minerals".
Ensuring that transactions between multinational mining
companies and their affiliates are conducted as independent
entities through applying the arm’s length
principle remains a key challenge facing tax administration
authorities across the continent.
On the other hand, there are several transfer pricing risks
that MNEs should consider when structuring investments into
selected countries across the continent.
BonelliErede is partnering with International Tax
Review to present a webinar on the main
transfer pricing issues to consider when structuring
investments into Egypt and Ethiopia. Experts will discuss the
legal framework and transfer pricing rules in these countries,
the applicable transfer pricing methods and international
standards and the available tools available to MNEs to manage
their transfer pricing risks.
The discussion, moderated by Anjana Haines, editor of
International Tax Review and led by Stefano Simontacchi,
managing partner at BonelliErede in Milan, will be broadcast
live at 3.00 pm GMT on Wednesday April
Register for the webinar here: https://www.brighttalk.com/webcast/720/251421.