Comparing Tax Regimes under African Startup Laws/Bills

The tax burden placed on businesses, startups, corporates, and industries alike, can frequently mean the difference between their capacity to expand, create jobs, and invest in innovation. This is more so for startups that are usually experimental in their early years and burn cash that could otherwise be subject to taxation, like capital gains tax.

Laws that provide exemptions or incentives to startups support their chances of success by reducing compliance burden, financial outlay, and give countries a competitive edge in attracting local and foreign investment into local startups.

In recent years, several African countries have introduced or are in the process of introducing Startup Laws. These laws create a special legal regime for startups, separate from the general legal regime for businesses.

In this guide, we focus on the tax provisions of these startup laws, focusing on Ethiopia, Senegal, Nigeria, Kenya, Algeria, and Tunisia highlighting and comparing the progressiveness of their tax regimes.