CAPITAL
Bamako
POPULATION
20 Million
AREA
1,240,192 sq km
LEGAL SYSTEM
A civil law system based on the French civil law model and influenced by customary law; judicial review of legislative acts in the Constitutional Court.
TAX REGIME
Personal Income Tax | Local & Expatriate
| Summary | Tax Rate/s |
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The taxable income is calculated by deducting a standard deduction of 30% on gross income which cannot exceed 900K XOF and also the number of dependent has a positive effect on income tax. The rate is the same for both locals and expats
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Between 20 and 40% of taxable income – it is a progressive rate.
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Corporate Income Tax
| Summary | Tax Rate/s |
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The Corporate tax rate is applicable to companies that realize a tax profit. However, if there is a loss, then the minimum CIT is calculated on 0.5% of revenues.
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30% |
Withholding Tax
| Summary | Tax Rate/s |
There are several WHT in Senegal:
However, if the securities have been held for at least 5 years and in Senegal the WHT rate is at 6 %.
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Capital Gains Tax
| Summary | Tax Rate/s |
Companies pay capital gains tax at the income tax rate of 30%. Other taxpayers pay the following :
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Environmental Levy
| Summary | Tax Rate/s |
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The tax is paid to the landlord for the rental of office space or staff housing. |
Trash collection tax – 3.6% |
Inheritance Tax
| Summary | Tax Rate/s |
| Registration fees on the amount exceeding 200 million. |
Dividend Tax
| Summary | Tax Rate/s |
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The withholding is at the charge of the person receiving the dividend.
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10% withholding.
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VAT/GST
| Summary | Tax Rate/s |
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There are goods and services that are explicitly exempt from VAT such as goods of first necessity (rice, sugar, etc.).
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Bilateral Tax Treaties and DTAAs
| Summary | Tax Rate/s |
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Tax Incentives
| Summary | Tax Rate/s |
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In the first three years for SMEs exemption from the minimum income tax in case of a loss. For the same SMEs they have an exemption on the employer contribution to payroll income tax for a period of three years. Interest income on government bonds are exempt from taxation. |
Tax Incentives
| Summary | Tax Rate/s |
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Tax Code which has amendments through the annual budgets.
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TOP INDUSTRIES
FOOD PROCESSING
CONSTRUCTION
PHOSPHATE
GOLD MINING
ECONOMIC OVERVIEW
Among the 25 poorest countries in the world, landlocked Mali depends on gold mining and agricultural exports for revenue. The country’s fiscal status fluctuates with gold and agricultural commodity prices and the harvest; cotton and gold exports make up around 80% of export earnings.
Economic activity is largely confined to the riverine area irrigated by the Niger River; about 65% of Mali’s land area is desert or semidesert. About 10% of the population is nomadic and about 80% of the labor force is engaged in farming and fishing. Industrial activity is concentrated on processing farm commodities.
The government subsidizes the production of cereals to decrease the country’s dependence on imported foodstuffs and to reduce its vulnerability to food price shocks. Mali is developing its iron ore extraction industry to diversify foreign exchange earnings away from gold.