CAPITAL
Dakar
POPULATION
16 Million
AREA
196,722 sq km
LEGAL SYSTEM
A civil law system based on French law; judicial review of legislative acts in Constitutional Court.
TAX RATES
Personal Income Tax | Local & Expatriate
| Summary | Tax Rate/s |
|
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
| Summary | Tax Rate/s |
|
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.
|
30% |
Withholding Tax
| Summary | Tax Rate/s |
| 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
| Summary | Tax Rate/s |
| 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. |
Environmental Levy
| Summary | Tax Rate/s |
| 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 |
|
The withholding is at the charge of the person receiving the dividend.
|
10% withholding |
VAT/GST
| Summary | Tax Rate/s |
|
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
| Summary | Tax Rate/s |
| UAE
Spain France Italie Luxembourg Mauritius Marocco WAMU Portugal Qatar United Kingdom Kuwait Belgium Lebanon Canada Norway Tunisia Malaysia Mauritania |
Tax Incentives
| Summary | Tax Rate/s |
|
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
| Summary | Tax Rate/s |
|
Tax Code which has amendments through the annual budgets. |
TOP INDUSTRIES
AGRICULTURAL AND FISH PROCESSING
PHOSPHATE MINING
FERTILIZER PRODUCTION
PETROLEUM REFINING
ZIRCON AND GOLD MINING
CONSTRUCTION MATERIALS
SHIP CONSTRUCTION AND REPAIR
ECONOMIC OVERVIEW
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.