The 3rd annual tax summit Tax Incentives and Challenges facing the Mining Industry in Africa Osborne Wanyoike Director – tax services

So what will I cover Introduction Stop, think…….action Two steps forward, one back Case studies – capital is mobile Conclusion

PwC Africa Many skills, one network, serving a rising Africa As the largest provider of professional services in Africa, we have more than 400 partners and over 9 000 staff on the ground in 34 countries. In Kenya, we have over 600 professionals

Tax landscape – theme

2017 PwC publication

Challenges can be summarised as….

Striking a balance… Ensuring a tax policy framework that works both for Government and investor - a real challenge is that policy makers frequently do not seem to have a full grip on the overall economics of the combined effect of various fiscal costs. Eliminating inconsistency between agreements (mining development agreements) and legislation Dialogue on how to ensure tax stability Striking a balance - indirect taxes – extending customs duty reliefs to sub-contractors Direct taxes - (i) capital allowances vs tax holidays (ii) restoration costs (iii) ringfencing (iv) USD accounting Bringing certainty with regards to transactions - indirect disposals Clarity on Natural Resource Income and royalty on minerals

Conclusion – dialogue is a key success factor

The End