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 base.
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 GMTon Wednesday April 19 2017.
Register for the webinar here: https://www.brighttalk.com/webcast/720/251421.
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