Extractives & Infrastructure-Specific Diagnostics
01. Diagnostics for the resource sector
TaxIQ Africa offers diagnostics for the resource sector:
- Farm-Out & Joint Venture Accounting Reviews: Specialized audits of farm-out arrangements to ensure that the carried interest and profit-sharing ratios comply with both the Production Sharing Agreements (PSAs) and international transfer pricing standards.
- Ring-Fencing Compliance: Analyzing whether profits and costs are correctly allocated between different petroleum blocks or mining licenses to prevent illegal tax leakage across projects.
02. African Treaty Network & WHT Leakage Audit
Many African nations have unique Double Taxation Agreements (DTAs). We provide:
- Treaty Benefit Diagnostics: Reviewing group structures to ensure they meet the Principal Purpose Test (PPT) and Beneficial Ownership requirements required to access reduced withholding tax rates.
- WHT Optimization:WHT Optimization: Identifying "tax leakage" where groups are paying higher withholding taxes than necessary due to poor characterization of intra-group payments (e.g., misclassifying professional fees as royalties).
03. Digital Economy and Nexus Diagnostic
As African nations implement Digital Service Taxes (DST), TaxIQ Africa can assist:
- Nexus Risk Assessment:Determining if digital sales or remote services create a taxable presence in African jurisdictions, even without a physical office.
- VAT on Remote Services:Diagnosing whether the group is compliant with the rapidly evolving rules for VAT on imported digital services across different African markets.
04. Total Tax Contribution Analysis for Africa
We help multinationals quantify their impact to improve their Social License to Operate and defensibility:
- Economic Impact Reporting:Measuring the total tax footprint (Income Tax, VAT, WHT, Customs, and PAYE) to present a holistic view of the group's contribution to the local economy.
- Fair Share Benchmarking:Using African-specific data to show that the profit allocated to the local jurisdiction is "fair" relative to industry peers, providing a powerful shield during high-level tax audits.
05. ommodity & Export Pricing Diagnostic
For African exporters of raw materials or agricultural products (like coffee or minerals), we provide:
- The Sixth Method Review:Ensuring that export prices align with publicly quoted market prices (the Commodity Rule) often used by African regulators to prevent undervalued exports.
- Logistics & Freight Allocation:Logistics & Freight Allocation: Analyzing whether the transport and insurance costs used to calculate FOB or CIF prices are arm's length and properly documented.