Taxes: ‘Significant Threat’ For Companies Doing Business In Africa

Taxes: ‘Significant Threat’ For Companies Doing Business In Africa

After political instability, taxes are the second-most significant threat for companies doing business in African countries, according to a PricewaterhouseCoopers survey, BusinessDayLive reports.

The most significant finding of the PwC’s second Africa Tax Survey confirmed that doing business in African countries is still a big challenge, said Paul de Chalain, Africa head of tax for the global tax consultancy. In particular, uncertainty around the application of legislation and discussing or negotiating with the tax authorities remain challenging, he said.

de Chalain spoke at PwC’s 16th Africa Tax and Business Symposium in Mauritius.

“Tax is still considered to be one of the primary constraints to do doing business in Africa,” he said. “This is somewhat disappointing, since business considerations should ideally be leading decision making, with tax matters following as a mere formality.”

PwC focuses on audit and assurance, tax and consulting services.

The Democratic Republic of Congo, Nigeria and Angola are considered among the most difficult countries in which to do business, the survey found, according to the report. South Africa was considered the most difficult country from a business and regulatory perspective.