Global corporate tax change and the impact on Southern Africa : Advancing pluralist thinking in Economics

Abstract

Corporate tax systems of developing countries can potentially be contributors or impediments to their economic development. This is especially relevant for Southern Africa and, as such, the Southern African Development Community (SADC) has a set agenda regarding regional integration goals, and where the guiding principle is tax harmonisation that benefits all members through tax reform efforts. An understanding of the main determinants of corporate tax (CT) rates, whether internal public needs or external competitive pressure, becomes pertinent. A recent announcement of a global minimum corporate tax rate of 15 per cent holds promise in reducing harmful tax competition and profit shifting and therefore sustainable revenue for all governments concerned.