The Togolese Republic in West Africa is bordered by Ghana, Benin, Burkina Faso, and the Gulf of Guinea. The largest city, as well as the capital of the country, is located at Lome, and Togo is one of the smallest countries in Africa; it is also considered one of the narrowest countries in the world.
The country is rich in phosphate, and agricultural products such as coffee, cocoa bean, peanuts, and cotton. Other important sectors include the brewery and textile industries.
Corporate income tax
The government of Togo reduced the standard corporate income tax to 27% for all resident companies, though branches of foreign companies are subjected to a 13% withholding tax on overseas remittance of the branch’s profit.
VAT
Value-added tax (VAT) in Togo, is levied at 18%. Though companies involved in services such as finance, medical, transport, and insurance are exempted from VAT.
Capital gains of up to 3% to 5% withholding tax are received from sales of bonds or shares in tax-resident companies.
Other consumption taxes include excise duty levied on Tobacco at the rate of 150%, coffee at 10%, soft drinks have 5% excluding water, beer taxes are 18%, and other spirits at 50%.
Fuel consumption tax is levied at a rate ranging from XOF 0 to XOF 60 per liter depending on the type of fuel.
Withholding and Other Corporate Taxes
Dividends are subjected to a 13% withholding tax paid to resident and non-resident companies. Companies listed in WAEMU are subjected to a 7% withholding tax.
The interest of resident and non-resident entities are subjected to a 6% withholding tax if received by the company, and 13% if received by the individual.
Royalties received a withholding tax of 5% paid to a resident company that has a tax number, 10% to a resident company with no tax number, and 20% to a non-resident entity with branches in the country.
Togo employers withhold 15% of their employee’s gross salary, paying the total amount to the National Social Security Fund (CNSS) as the social security contribution.
Other taxes
Other taxes are included in Togo which are 3% payroll taxes on gross salaries, 15% property tax on the rent value of any real property, and a 5% tax on the transfer of immovable property to another owner.
The government of Togo set up the Togolese Tax Authority, to ensure that all registered entity registers their tax and also file annual returns by the 13 of March following the end of a fiscal year.
To date, Togo has signed only two double-tax treaties with France and Tunisia.
