Africa tax rates

Among Africa countries, Nigeria has the lowest top income tax rate at 24.00% in 2024. The regional average top rate is 32.1%.

Egypt has the lowest corporate tax rate in Africa at 22.50% (2024). The regional average is 28.2%.

Based on the combined income tax and employee social security burden, Nigeria is the most tax-friendly country in Africa with a combined maximum rate of 32%.

Morocco has the highest standard VAT rate in Africa at 20.00% (2024). The regional average VAT rate is 15.1%. VAT is charged on most goods and services, though most countries apply reduced rates to essentials like food and medicine.

For corporate taxes, Egypt offers the lowest rate in Africa at 22.50%. However, the best jurisdiction for a business depends on more than just the headline rate — factors like VAT, employer social security costs, ease of setup, and double tax treaties all affect the true tax burden. The regional average corporate tax is 28.2%.

The average top income tax rate in Africa is 32.1%, compared to a global average of approximately 31%. The average corporate tax rate in Africa is 28.2%, against a global average of around 23%. Africa is broadly in line with global averages.

Ethiopia, Egypt do not levy a separate capital gains tax in Africa. In these countries, profits from selling investments or property may either be tax-free or taxed as ordinary income at standard rates.