Taxes paid by companies play pivotal roles in a nation’s revenue generation drive and how formidable the economy becomes. Here is a list of the big ten African countries by GDP and their corporate tax rates
10 Countries with Highest Corporate Tax Rates in Africa. One of the many characteristics that make the big economies is having a formidable stream of corporate or company tax paid by companies operational in such a country. Africa is not an exception to this phenomenon.
Just to set the records straight as defined by Wikipedia, a corporate tax or company tax, is a direct tax imposed on the income or capital of corporations or analogous legal entities.
Like in Africa, such a tax is mostly implemented at the Federal level or national level.
Rates payable by these corporate entities vary from country to country, depending on the economic peculiarity in such a country.
Although in Africa, tax rates are not as competitive as they are out there in continents with top economies like in Europe. This factor has created a high degree of variation among the countries.
Peculiarities that affect a country’s corporate tax have their primary source from the kind of economy in operation and the economic focus of such a country.
For instance, Countries rich in natural resources often generate the bulk of their tax revenue from high corporate taxes on oil and natural gas companies, allowing other industries to operate in a relatively low-tax environment.
10 Countries with Highest Corporate Tax Rates in Africa
Without much ado, let us dive into the different corporate tax rates in the top 10 African countries by GDP as collected recently by OnDeck publication.
1. Nigeria – 30%
Nigeria maintains a corporate rate of 30% despite grappling with rising inflationary trends in recent times.
2. South Africa – 28%
For over 1 decade now, South Africa’s average tax rate for corporations has a mark of 28%. The country also struggles with unemployment and pocket of uprisings by the youths.
3. Kenya – 30%
Kenya in the eastern region of the continent also has one of the highest corporate taxes as Nigeria. It retains a 30% rate.
4. Ethiopia – 30%
Still in east Africa which represents one of the regions with the highest corporate tax, Ethiopia boasts a 30% corporate tax rate.
5. Ghana- 25%
Back in West Africa is Ghana with a 25% corporate tax rate for over 10 years now.
6. Cote d’Ivoire – 25%
In line with the global average, Cote d’Ivoire retains a 25% corporate tax rate.
7. Angola – 25%
Due to its bulk revenue from national oil and gas companies, the country retains a 25% rate of corporate tax.
8. Tanzania – 30%
Just like other East African nations, Tanzania also retains a very high corporate tax at 30%.
9. DR Congo – 30%
In DR Congo the rate is 30% including mining companies.
10. Cameroon – 30.8
Although may rank low in terms of GDP but tops this list of the highest corporate tax rate at 30.8%.
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