Lex Africa Guide 2012 Full - Afrer.org

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occurred). The tax may be paid in two installments, both equalto one third of the previous year's company tax. The balance ispaid at least by March of the following tax year. A declaration ofprofit or loss must be submitted by the end of April.Value added tax (VAT) replaced previous taxes on turnover,import turnover, production, business and services. It is paid onsales of goods and services by all individuals and entities(including collectives and state-owned companies). Certainexemptions apply.Other taxes include tax on professionals, tax on financialactivities, tax on insurance, apprenticeship tax, contributions toprofessional training and apprenticeships and a fixed ratepayment on salaries.Import/exportImporters are required to have a local bank account if they wishto import goods in excess of certain values. Payments by theimporter must be made through this account and, if the relevantcontract is terminated, payments previously made to thesupplier out of Guinea must be repatriated within thirty days.Exporters also require an account with a commercial bank or theCentral Bank and must have an export certificate. They arerequired to repatriate the proceeds of the sale to Guinea within amaximum period of 90 days from the date of the export of goods,unless an extension is granted by the Central Bank.Legal SystemThe legal system is based on the French civil law model.Intellectual propertyGuinea is member of the OAPI a treaty relating to intellectualproperty signed by sixteen African countries to protect patents,trademarks and other intellectual property by means of a singleregistration in a central registry in Yaoundé, Cameroon.Treaties, Bilateral Agreements and Membership ofInternational and Regional organizationsA double tax treaty between Guinea and France was signed in1999 and came into force in 2004. Guinea is member of theEconomic Community of West African States (ECOWAS), theUnited Nations, the International Monetary Fund, the WorldBank, the African Union and the Mano River Union (MRU) withLiberia and Sierra Leone.temporary workers. Offshore oil reserves are being explored.USD3.5 billion refinery projects (to refine bauxite into alumina)have been proposed.Mining activities are regulated by the Mining Code and a newCode was adopted on 6 September 2011 which introducedmining permits. It is estimated that more than 200 permits havebeen issued for iron ore, gold, diamond, basic metals, uranium,limestone, nickel and bauxite.The sector has grown in recent years due to the Government'spolicy of promoting private investment by improving theadministrative and judicial framework. In addition theInvestment Code no longer discriminates between foreignersand nationals and allows the repatriation of profits.The Government has significant shareholdings in several miningcompanies including the largest bauxite mining company,Compaynie des Bauxites de Guinea (49%), and the AREDORdiamond joint venture (50%).AgricultureAgriculture is undeveloped and involves subsistence crops (rice,peanuts, corn and cassava) and export crops (pineapples,bananas, mangoes, citrus, coffee, cacao, cotton, cashew nuts,rubber, wood and cocoa) and contributes about 20% of thecountry's GDP. Guinea is not food self-sufficient and relies onimports.Labour RelationsThe Labor Code fixes conditions regarding employment,remuneration, transport and travel allowances, working hours,termination of employment and occupational health and safety.Any discrimination based on gender, race or age is prohibited.Employment contracts may be long term or fixed term.Expatriate employees require a labor permit from the AgenceGuinéenne pour Promotion de l’Emploi (AGUIPE). An annual feeof USD 300 is payable by the employer for each permit.Employers are obliged to provide transport for their employees(either by paying them a transport allowance by providingtransport for employees ) and must register their employeeswith the NSSF, the social security office.InfrastructureRoad and transport infrastructure is very underdeveloped. Therailway between Conakry and Kankan no longer operates anddomestic air services are intermittent. The main river, the Niger,is mostly navigable and there are 1 161 waterways of about 2 500km. There is potential for hydro electric power plants.TelecommunicationsAlthough several companies are active, the sector remainsundeveloped due to many connection and network problems.Mining and OilThere are significant deposits of iron ore, gold, diamonds andbauxite (25% of the world's known bauxite reserves) and themining sector comprises about 80% of Guinea's exports and isthe second largest employer (after the public service) employingmore than 10 000 permanent employees and about 200 00037
38KAPLAN & STRATTONKENYAFirm InformationWebsite address: www.kaplanstratton.comLanguages spoken: English, Swahili, GujaratiContact: Nigel ShawTelephone: +254 (20) 284 1000/273 3919Fax: +254 (20) 273 4667Email: info@kaplanstratton.comRanked as a Tier 1 firm in Chambers, Global IFLR 1000 and Legal500.Country InformationKenya covers a total area of approximately 582 650 squarekilometres. The population is approximately 39 000 000.Political SystemMultiparty democracy.Investment ClimateThe Investment Promotion Act encourages foreign investmentand facilitates the issue of general and industry specific licences.Kenya’s membership of the East African Community (EAC) andthe Common Market for Eastern and Southern Africa (COMESA)presents opportunities for manufacturing operations to exploitthe benefits of those markets.There are limited foreign investment incentives available inKenya. The main area of growth has been in light assemblymanufacturing in export processing zones where 10-year taxholidays are available to approved enterprises.There are no restrictions on investment by foreigners in privatecompanies and foreigners can be directors of companies.Minimum Kenyan co-ownership in insurance companies, banksand telecommunications companies is mandatory, while at least25% of the shares of companies listed on the Nairobi SecuritiesExchange must be held by Kenyans. Certain dealings inagricultural land and beach-front property involving noncitizensare prohibited unless special approval is obtained.Otherwise foreigners are free to hold land but only on the basisof leasehold tenure not exceeding ninety nine years.Forms of BusinessClose corporationsPartnershipTrading trustCo-operativesMultinationalPrivate limited liabilityPrivate unlimited liabilityPublic liability companySole proprietorshipCompany limited by guaranteePrivate or public limited liability companyJoint ventureExternal company (i.e. a branch of a foreign company)Partnership/limited partnershipSole traderNon governmental organisation.Formation of a CompanyCompanies and external companies (branches) must beregistered with the authorities in Nairobi. Businesses such asbanks, telecommunications and insurance companies requirespecial licenses.Regulatory FrameworkThere is an active Capital Markets Authority. There are statutoryCapital Markets Authority and Nairobi Securities Exchangeregulations governing issues and dealings in securities listed onthe Nairobi Securities Exchange.The Competition Authority regulates the creation orstrengthening of monopolies including acquisitions andtakeovers of businesses where a change in control occurs.Exchange ControlsThere are no exchange control restrictions. Residents may holdforeign currency accounts. Foreign exchange for eligibletransactions is purchased from commercial banks without anycontrols. Eligible transactions include payments in respect ofdividends, capital and interest on loans, current accounttransactions and proceeds on disposal of investments.TaxationThe main taxes are as follows:TaxRateIncome tax on individuals 30%Corporate tax 30%Branch of a foreign company 37.5% (non-resident)VAT 16%Creation or increase in share capital 1%Kenya has double taxation treaties with Canada, Denmark,Norway, Sweden, India, Zambia, United Kingdom, Germany,France, Tanzania and Uganda. Neither the USA nor South Africahave double taxation treaties with Kenya.Various capital deductions are available on industrial buildings,hotels, plant and machinery and mining investment. Capitalallowances are provided on the basis of cost on a reducingbalance basis.Benefits-in-kind paid to employees such a motor cars, housingand loans are taxable. Employee taxes are based around a payas-you-earnincome tax deduction, a national social securityfund and a national hospital insurance levy. Excise and customsduties are also payable depending on the nature of the goodsproduced or imported. There is no capital gains tax system ordeath duties/taxes payable on personal estates.Legal SystemKenya has a well developed legal system, partially inherited fromits colonial past, with English common law forming the basis butcombining traditional customary law and elements of Islamic
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Page 44 and 45: Exchange ControlsThe Exchange Code
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Page 50 and 51: Membership of International and Reg
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Page 56 and 57: MOZAMBIQUECOUTO, GRAÇA & ASSOCIADO
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Page 60 and 61: Treaties and Bilateral AgreementsNa
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Page 68 and 69: SENEGALMAME ADAMA GUEYE & ASSOCIÉS
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Page 84 and 85: exemption for interest paid abroad
Page 86 and 87: estrictions on externalising profit
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ZIMBABWESCANLEN AND HOLDERNESS LEGA
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