Explained below are the different categories of taxes available in Senegal
Individual tax
Senegalese tax residents are subject to tax on their global income.
Salary income is always taxed in Senegal, provided the labor is performed in Senegal or the business has a presence there.
Personal Income Tax
Personal income tax (PIT) refers to a progressive levy on the taxable income of people, including net wages.
Rates of personal income tax
The progressive rates for each share are obtained by splitting one’s income into shares (personal allowances). The tax corresponding to each share is then multiplied by the number of shares to obtain the total tax due. The following scale depicts the various income tax rates.
- From 0 to 630,000 is 0%
- From 630,001 to 1,500,000 is 20%
- From 1,500,001 to 4,000,000 is 30%
- From 4,000,001 to 8,000,000 is 35%
- From 8,000,001 to 13,500,000 is 37%
- From 13,500,001 And over is 40%.
Withholding Taxes(WHT)
WHT on remuneration given to local suppliers for services delivered
The Senegalese debtor is required to deduct 5% of the salary given to Senegalese residents in exchange for services. This WHT applies only when the service is provided by an individual liable for tax under the lump-sum taxation regime (very small businesses), when the provider is unable to prove its tax registration (for example, because it lacks a tax identification number), or when the provider is a tax-transparent entity that has not elected CIT liability.
The Senegalese debtor must pay the tax authorities the amount withheld within 15 days of the invoice payment month.
Withholding Tax (WHT’s) on financial incomes
The following revenue is subject to withholding at source (subject to DTTs and specified exemptions):
- 10 percent dividends The WHT should be applied when the corporation pays the dividend. A complicated system of quarterly installment payments exists.
- Interest on bonds is 13%. The withheld amount must be paid in four equal installments (within the first 20 days of January, April, July, and October of each year).
- 8 percent on deposits or guaranteed interest on accounts with a Senegalese bank. The bank pays the amount withheld by the 15th day of the month following the month of payment or posting.
- Other income, such as interest on loans, is 16 percent. The amount withheld is paid within 15 days of the following month’s payment or posting.
Corporate Income Tax
CIT is imposed at a rate of 30% on branches and businesses.
Residents are taxed on their global earnings. Non-residents are normally taxed on Senegal-sourced income if they have a permanent establishment (PE).
Non-residents may be subject to WHTs if they provide services to Senegalese taxpayers, subject to the execution of a double tax treaty (DTT).
Value Added Tax (VAT)
Most commercial operations are subject to an 18 percent VAT, with some exceptions.
Tourism activities are subject to a 10% VAT.
Instead of VAT, a 17 percent special tax on financial activities (primarily banking, money transfers, and change transactions) is imposed.
Monthly VAT returns are required.
Tariffs on imports/customs duties
The following tariffs apply when items are imported:
- Customs duties: 0%, 5%, 10%, or 20%, depending on the nature of the items.
- Import charge for statistical purposes: 1%
Since July 1, 2017, the community solidarity levy has increased by 0.8 percent (1 percent before July 2017).
- 0.5 percent levy by the Economic Community of West African States (ECOWAS) (only applicable to products originating from non-ECOWAS countries).
- The royalty of the Senegalese Shippers Council (COSEC): is 0.4 percent (only applicable on importation by sea).
- The 2022 Finance Act included a 1.5 percent fee for the Customs Modernization Program. It applies to the customs value of qualified products, excluding those placed under investment-friendly customs and tax regimes.
Tax on built real estate
Owners of structures other than factories and industrial premises are subject to a yearly tax on developed real estate. Companies are no longer subject to the tax on developed real estate on their balance sheet properties.
The tax rate is set at 5%. It is based on the rental value of land, buildings, and other assets.
