Personal Income Tax | Local & Expatriate
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 dependant has a positive effect on income tax
The rate is the same for both locals and expats.
|Between 20 and 40% of taxable income – it is a progressive rate.|
Corporate Income Tax
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.
|There are several WHT in Senegal:
– 5% on services provided by local service provided who are not subejct to VAT for whom the amount paid has exceeded 25 000 XOF
– 10 %, on dividends ;
– 13 %, on share or bond revenues ;
However, if the securities have been held for at least 5 years and in Senegal the the WHT rate is at 6 %.
– 16 %, for other types of revenues such as Board honorarium,
8 % for interest income
25 % for services provided by foreign service providers unless there is a tax treaty.
Capital Gains Tax
|Companies pay capital gains tax at the income tax rate of 30%. Other taxpayers pay the following :
– 15% on not developped real estate ;
– between 6% and 13% on securities and bonds.
– 10 % on real estate that have a building and constructed on Gov’t property ;
– 5 % in all other cases.
|The tax is paid to the landlord for the rental of office space or staff housing.||Trash collection tax – 3.6%|
|Registration fees on the amount exceeding 200 million.|
The withholding is at the charge of the person receiving the dividend.
There are goods and services that are explicitly exempt from VAT such as goods of first necessity (rice, sugar, etc).
|18% – general rate
10% – for hotels and restaurants
Bilateral Tax Treaties and DTAAs
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 Rulings and Directives
Tax Code which has amendments through the annual budgets.
Senegal’s economy is driven by mining, construction, tourism, fisheries and agriculture, which are the primary sources of employment in rural areas. The country’s key export industries include phosphate mining, fertilizer production, agricultural products and commercial fishing and Senegal is also working on oil exploration projects. It relies heavily on donor assistance, remittances and foreign direct investment. Senegal reached a growth rate of 7% in 2017, due in part to strong performance in agriculture despite erratic rainfall. Bureaucratic bottlenecks and a challenging business climate are among the perennial challenges that may slow the development of the economy.