African Countries Should Enact Minimum Top-Up Taxes, Group Says

Domestic minimum top-up taxes are “a critical opportunity” for African countries as the new 15% global minimum tax is implemented, and countries have multiple ways in which they can enact one, an African tax administrators group said.

Imposing such a tax maximizes a country’s revenue and relaxes the pressure to provide tax incentives that can be inefficient and wasteful, the African Tax Administration Forum said Friday in a report on drafting top-up tax legislation.

• Domestic minimum top-up taxes are a version of the global minimum tax that a country applies within its own borders. They help a country capture tax ...