Localisation Updates - Africa 1 October 2019 Localisation Updates - Africa

Home , Mozambican metical, Zimbabwean dollar

• Agenda: – EC Localisations in Africa – EC Localisation for Mozambique – Zimbabwe currency change – Other legal changes in Africa EC Country Versions – 09/2019

Source: https://support.sap.com/content/dam/support/en_us/library/ssp/ products/globalization/224853ed-b97c-0010-82c7-eda71af511fa.pdf EC Country Versions in Africa – 2019

• Angola • Botswana • Egypt • Kenya • Malawi • Morocco • Mozambique (11/2019) • Namibia • Nigeria • South Africa • Tanzania • Uganda • Zimbabwe Generic Requirements for Mozambique

• Requirements for Mozambique already available in EC: – Official Language: Portuguese (PT) – Currency: Mozambican Metical (MZN) – ISO Code: MZ, MOZ

• National ID for Mozambique – Description: “Bilhete de Identidade” (ID Number) – Display format: NNNNNNNNNNNNA (12 Numeric and 1 Alphabetical) New Fields for Mozambique (1)

New Fields in CSF SDM – Global Information (globalInfo – hris – element) • Personal Information: English Portuguese – Ethnic Group Makhuwa Macua – PickListId = ”ETHNICGROUP_MOZ” Shona Xona Ndau Ndau Tsonga Tsonga Makonde Maconde WaYao Ajaua Swahili Suaíli Tonga Tonga Chopi Chope Nguni Angune Mixed Metiço White Branco Indian Indiano New Fields for Mozambique (2)

New Fields in CSF SDM – Global Information (globalInfo – hris – element) • Personal Information: English – Education Level Illiterate – PickListId = ”EDUCATIONLEVEL_MOZ” Primary School Secondary School High School Professional School University Post Graduate • Dependents: – Indicate if dependent child is entitled to benefit (Yes/No) New Fields for Mozambique (3)

New Fields in CSF SDM – Home Address (homeAddress – hris – element) • Home Address: English Portuguese – Postal code: format NNNN Cabo Delgado Cabo Delgado – Province Gaza Gaza – PickListId = ”PROVINCE_MOZ” Inhambane Inhambane Manica Manica Maputo Maputo Nampula Nampula Niassa Niassa Sofala Sofala Tete Tete Zambezia Zambezia New Fields for Mozambique (4)

New Personal Documents • Picklist for Personal Documents: – MOZ – Passport – MOZ – Work Permit – MOZ – Residence Permit – MOZ – Driver’s License – MOZ – Residence Permit New Fields for Mozambique (5)

Required Payment Information The following bank fields are required to be available for Payment Information • Payment methods • Account Type • Routing Number • Account Number – Maximum length is 10 digits • IBAN – IBAN’s length is 25 characters – The IBAN structure should be MZ2!n21!n. – The initial two characters are always “MZ”. • Currency • Amount • Percent Zimbabwe Currency Change

• In February 2019, the Reserve Bank of Zimbabwe announced the RTGS (Real Time Gross Settlement) Dollar. • Since they did not declare a new ISO currency, SAP did not provide any updates (SAP Note 2767242). • All electronic balances expressed in US Dollar were immediately converted into RTGS Dollar at a rate of 1:1 • The official exchange rate at start of trading was USD 1: 2.5 RTGS$ • Thereafter the RTGS$ weakened significantly against the USD. • In June 2019, RTGS became the only legal currency in Zimbabwe, replacing the multi currency system. • Most SAP clients (including the Zimbabwe Revenue Authority itself) repurposed the ISO currency code “ZWL”, previously known as the “Zimbabwean Dollar” as the currency code used for RTGS Dollar. Zimbabwe Tax Table Change

• Following the mid-term budget in August 2019, the Zimbabwe Revenue Authority published RTGS$ tax tables (in addition to the USD income tax tables) effective from August until December. • Accompanying the tax table changes, tax relief amounts changed • The ISO currency code ZWL became used officially. • General advice is to consider the tax year split into two: January – July (USD tax table) and August – December (ZWL tax table) How did clients handle the currency changes?

• Client 1: – Full conversion from USD to ZWL, including all historic transactions – (Note: This client only performs local transactions) – Pros: • Legal compliance with the use of ZWL as legal tender • All history is updated with legal tender – Cons: • Cannot report different currencies to the revenue authority for 2019 • In case of another currency change, the exercise must be repeated • Very involved effort to update all transactions • Not an option for clients who performed USD transaction outside of Zimbabwe How did clients handle the currency changes?

• Client 2: – Client created new company code with currency ZWL – Transferred all employees to new company code from 1 July 2019 – Updated all transactional data from 1 July 2019 onwards – Pros: • Legal compliance with the use of ZWL as legal tender • Ease in the accounting of each currency • Reporting of actual transaction currency still possible – Cons: • In case of another currency change, the exercise must be repeated How did clients handle the currency changes?

• Client 3: – Client only updated master data with the use of ZWL – Pros: • Legal compliance with the use of ZWL as legal tender • Reporting of actual transaction currency still possible • Most flexible to accommodate any future changes that may occur – Cons: • In case of another currency change, the exercise must be repeated Other notable legal changes in Africa in 2019

• Angola: • Mozambique: – Tax exemption amount on Meal – Increase in National Minimum and Transport allowances Wage – Changes to exemption of • Namibia: Severance payments – Tax table changes – Increase in National Minimum – ITAS: New ETAX monthly return Wage • Tunisia: • Botswana: – Layout changes in Tax Declaration – CSV output for ITW8 report File format • DRC: • Swaziland: – Child Relief and Max Tax – Introduction of Tax When Paid calculation sequence • Zambia: • Ghana: – New NAPSA maximum – Mortgage interest relief contributions – Tax table changes