The Republic of Niger is a landlocked area country in West Africa. The unitary state is named after the Niger River and is bordered by Libya, Chad, Nigeria, Benin, Burkina Faso, Mali, and Algeria.
The Niger economy is centered on livestock, subsistence crops, and part of the world’s largest deposit of uranium.
In Niger, the sales tax rate charges the consumer based on the purchase price. This tax affects only the purchase price of certain goods and services. It is important to know that revenue generated from the sales tax rate is an important source of income for the government of Niger.
Tax consideration in Niger
There is different tax consideration in the Republic of Niger and they include the following:
The corporate income tax regime
The country considers the corporate tax rate to be 30% on all profits; there is a value-added tax (VAT), on all goods, services, and imports which is a flat rate of 19%; the branches of a corporation also pay a corporate tax of 30%, though there is no additional tax on the branch remittance. The capital gain tax is also subjected to the standard corporate tax which is 30%.
Withholding tax
This tax applies to all dividends and royalties paid to resident and non-resident entities, the withholding tax rate is 10%. Companies listed on the approved stock exchange in the OEMOA, are levied a withholding tax of 7% on all dividends; unless reduced, a 20% rate is levied on interest.
The withholding tax also applies to technical services fees, and the amount paid as compensation for the services, this result in a tax rate of 16%; employers and employees are levied social security contribution which is at the rate of 16.40% and 5.25% respectively. There is a 2% tax on gross salary for Niger nationalists, and 4% for expatriates.
Other tax considerations
There is a stamp duty levy on all cash transactions, depending on the transaction amount. The Republic of Niger has a double tax treaty with the Republic of France.
Real estate property tax, has a 1% tax rate on each property owned by the company; the gains from sales of a fixed asset can be deferred if the company reinvests the gains in Niger within three years.
