- Company tax
- Scope of application
Commercial companies (SA, SAS, SARL excluding SUARL where the sole shareholder is a natural person), the cooperative companies, the professional and assimilated civil companies carrying out commercial or industrial activities, the share of the sponsors in a simple limited partnership, the share Partners whose Names are not revealed to the Administration in a participating company, legal persons domiciled abroad when they are beneficiaries of land income in Senegal or capital gains from the sale of immovable property in Senegal are liable to corporate tax IS Based on all of their earnings over the course of a year.
Corporate tax (IS) is the tax which, subject to international double taxation conventions, applies to the Benefit Overall Annual Realized In Senegal or Deemed Realized The Senegal of legal persons Present The Senegal or to theForeign Which are made up in the form of Companies Capital or not.
May opt for their liability to the SI, the companies of fact, the economic interest groups, the SNC, the participating companies (the share of the partners whose names are revealed to the Administration), the limited partnerships (the share of sponsored), the SURL Where the sole shareholder is a natural person, professional civil societies and real estate civil societies.
The tax rate is set at 30% of the taxable profit.
The minimum lump sum tax MFIs is due on the tax-free turnover realized in the year preceding the tax, at a rate of 0.5%. Under No circumstances shall the amount owing be less than 500.000 francs or more than 5 million francs.
- The determination of the tax result
Taxable profit is the net profit determined on the basis of the overall result of transactions of any kind carried out by corporations and legal entities, including in particular transfers of any assets, or at the end of operation Under the conditions laid down in Article 259 of the CGI, or in the course of operation.
Taxable profit is a tax term, it is determined from the net profit which is of an accounting nature.
In practice, the taxable result is determined from the accounting result (Net Profit = Total Products – Total Charges) To which tax-deductible expenses must be reinstated and to deduct non-taxable products.
- The recovery of the Corporate tax
The recovery of the IS (which Is Provisions common to SI and IR) Exception To the provisions of ART. 644 WHO Governs The Liability of Taxes, duties and taxes. With respect to the recovery of the SI (and IR), the CGI adopted the principle of Regime Advance Payments Forecast. The latter consists of advance payments to be charged on theTax Final Had In respect of the year imposed. What is Summarizes as follows:
- 1Er Deposit: 1/3 tax Had Of the last year to be paid no later than 15 February (the amount Y affèrent cannot be less than the amount of the MFI, to which it is therefore equal);
- 2e Deposit The same amount as the first instalment to be paid by 30 April at the latest;
- 3e Deposit Balance to be paid on a spontaneous basis no later than June 15.
Nb: If for the year in question the first instalment will be greater than or equal to the finale Deposit shall not be paid, subject to notifying the DGID by letter dated and signed no later than April 30th. The same principle applies if, after applying the 1Er Down Payment, the 2e Deposit is greater than the balance of the tax Had.
- Income Tax on natural persons
- Scope of application
Subject to the provisions of the international conventions on double taxation, income tax is payable by any natural person domiciled in Senegal or holder of income from Senegalese sources.
- How to determine the IRPP
Income tax is based on a progressive rate scale on all of the Taxpayer’s personal resources.
On the amount of tax liquidated pursuant to article 173 of the CGI, a reduction for family expenses is applied, depending on the number of shares available to the taxpayer. However, the amount of the tax may not exceed 40% of the taxable income (see table below).
Persons who are actually taken over by the taxpayer and do not have separate income from those constituting the taxpayer’s taxable basis. Each dependent child gives entitlement, Way Equal, half a share of the profit of each parent with income. Quant To The groom he is at 1.5 parts, the Single or divorced and the widow are to 1 share.
The maximum number of shares granted is limited to 5 shares.
The table for determining the tax reduction for family expenses is established by integrating minima and maxima.
- The different income categories and tax rates
The Income Land: The rates of the land contribution of the built properties are fixed at 5% for non-factory buildings, and to 7.5% For factories and similar industrial establishments. The Land contribution of unbuilt properties of any kind is set at Five percent.
Income from movable capital: Tax on the income of movable capital, withholding at source is charged for natural persons and in some cases constitutes a tax credit for legal persons:
-10% for the proceeds of the shares, shares and interest of the companies liable to tax on the Companies
-16% and 8% on the gross income of interest and cash vouchers issued by the Banks
-13% on the gross income of bonds.
The mostValues : Withholding tax at the rate of 25%.
The Benefits Professionals:
-Profits from industrial, commercial and artisanal activities (BIC) ;
-Benefits of non-commercial activities and related income (BNC) ;
-Benefits of agricultural professions (BA).
Income tax Claims: 16%. This rate is reduced to 8% if the structure that pays interest is a bank or a financial institution.
III. The Value Added Tax
- Scope of application
VAT shall be subject to the supply of goods, the provision of services made in Senegal for payment by a taxable person acting as such and the importation of goods, excluding agricultural activities and salaried activities within the meaning of the Labour Code.
- Fact Generator
The generator of the value added tax is By
- The delivery of good or work for sales, real estate work and work at Way
- The first use for self-deliveries of goods or works Estate
- The performance of the services rendered for the Services
- The customs use of the term for the purposes of the Imports
- LES Leasing or Finance operations Islamic
- LTransactions paid on state funds, local authorities or subject to the scheme of the Check
- LES operations carried out by the members of the approved management centres subject to the simplified real regime. They must proceed with the regularization of all their taxable transactions carried out during the year no later than the end of the third month following the close of the fiscal year.
- In a practical way, the generator happens when the invoice is received.
The VAT rate is set at 18%.
This rate is reduced to 10% for services provided by approved tourist accommodation establishments.
- General principle of deduction of VAT
The taxable person shall have the right to deduct the VAT or tax on financial activities (TAF) from which he is liable for the goods and services used for the purposes of his deduction-eligible transactions. (S. 374 of the CGI).
- The conditions for the deductibility of VAT
The deduction of VAT incurred in the purchase of goods and services is subject to compliance with the conditions of deadlines, forms and funds.
- The liquidation of VAT and the obligations of the taxpayer
For supplies of goods and services, VAT shall be payable in the month following that of the Loadable event, no later than 15 of this month.
For Imports, VAT is payable at the time of the generator event. (S. 363 of the CGI).
- Other Fees (indicative)
The Local Economic Contribution:
Cis by Act No. 2018-10 of 30 March 2018 amending certain provisions of the general tax Code (CGI) that profound changes have been made to local taxation. The patent no longer exists, henceforth, taxable persons, individuals or legal entities, will have to pay the local economic Contribution (CEL) which included two components.
On the one hand, a contribution based on the rental value of the prebets used for the practice of the profession CEL-VL And, on the other hand, a contribution based on the value added by the company called CEL-VA.
- The components of the CEL :
The new law introduced a new tax called CEL with two components:
- The contribution based on value added (CEL-VA);
- The sitting contribution on the rental value (CEL-VL)
- The sitting contribution on value added (CEL-VA) :
The modalities for determining and calculating the CEL-VA are different depending on the scheme concerned. In fact, there are two schemes:
-for enterprises in all sectors of activity (except those of the special Scheme);
-for operators of telecommunications networks open to the public approved in Senegal, Dand port facility operators on the other hand.
- Common Law regime
1.1-Modalities for determining value Added “tax”
The value added (VA) referred to here is a “tax added value” in the sense that it is different from “accounting or economic Value added”. The VA We are talking about here is tax added value.
The VA is determined differently for:
-Companies other than banks and insurance (see Notice and form);
-Banks and financial institutions (see Notice and form);
-Insurance companies (see Notice and form).
Three (3) annexes are developed.
1.2-Taxable Value added
The amount of VA used as the basis for calculating the CEL-VA is limited to 70% of turnover.
The CEL-VA rate is set at 1% of the VA released in the previous financial year.
1.4-Amount of CEL-going to acquit
The amount of the CEL-VA = 1% of the taxable value added.
Companies under the normal real taxation regime, the CEL-will be paid may not be less than:
- 15% of the previous year’s turnover: for taxpayers other than those referred to below.
- 0075% of the previous year’s turnover: for taxpayers in low-margin or sectoral areas with regulated prices.
Companies covered by the simplified real taxation scheme, the amount of the CEL-is going to pay is limited to:
- 15% of turnover: for taxpayers other than those referred to below;
- 0075% of turnover: for low-margin or sector-regulated enterprises with controlled prices.
- Special arrangements for telecommunications operators and port facilities
2.1-operators of telecommunications networks open to the public approved in Senegal
Instead of the CEL-VA, these operators pay a Contribution equal to 0.30% of turnover.
2.2-Port Facility operators
Port facility operators are subject, under the local economic contribution, to a single taxation that is equal to 1.5% of the CA (n-1).
NB: However, port operators must have the CEL-VL on the value of their prebets located outside the port area, excluding facilities for the safety of ships.
- Declaration of the CEL-VA
The CEL-VA is declared on a form provided by the Administration.
The form is made up of the declaration which must be accompanied by the annex.
The declaration must be filed no later than 30 April, at the same time as the tax bundle.
At the time of filing, the taxpayer must be provided with a copy that must be discharged by the administration.
NB: The unloaded copy is given to the taxpayer and is worth a collection (T. P).
- Payment of the CEL-VA
The CEL-VA must be paid by 31 July of the taxation year at the latest. It is settled on the basis of the copy discharge by the Administration.
NB: The unloaded copy worth TP, do not wait to receive the tax notice to proceed with the settlement.
The payment is made at the collector level.
- Penalties for late payment of the CEL-VA
The delay in payment of the CEL-VA is sanctioned by a delay interest of 10%.
- The sitting contribution on the rental value (CEL-VL) :
- Taxable goods at the CEL-VL
Are Taxable at the CEL-VL, the Prebets, Facilities and arrangements similar to Buildings as well as the land used for the purposes of the taxable activity.
NB: The part of the prebets and apartments in the business used for housing or dwelling is excluded from taxation. In all cases, the material means of production are not taken into account in determining the rental value.
- Determination of the tax base at the CEL-VL
Concerning the Prebets, Facilities and arrangements in the assets of the balance sheet Owned by the company) : It consists of the rental value of commercial or industrial Registered in the assets of the balance sheet which is equal to 7% of the cost of the prebets.
NB: The rental value of buildings and installations on the ground of others is determined in the same way.
About Rented : It is equal to the amount of the rent charged.
Concerning the precommissions made available : It is determined by comparison or if for lack of comparable elements, by application of 7% at the cost of the prebets.
Concerning the hiring professions of more than two furnished rooms, the exception of the Approved Hotel establishments : It is a very nice hotel.
Concerning the professions of business owner : This is the amount of the main rent
- Applicable Rates to CEL-VL
Nature des locaux Taux
Locaux pris en location ou occupés à titre gratuit 15%
Locaux, terrains et installations inscrits à l’actif du bilan du contribuable 20%
- Declaration of the CEL-VL
For the preparation of the contribution, the debtor of the CEL-VL file a land declaration No later than January 31 of the taxation year.
The declaration is made on a form made available to him by the Administration.
Nb: Companies will have to make a new declaration that cancels and replace the declaration of Patent and the declaration of the land Contribution of the built properties (CFPB) filed on 31 Janvier2018 which are lapsed.
Financial activities Tax (TAF): The tax rate on financial activities is 17%. This rate is reduced to 7% for interest, commissions and fees levied on the occasion of all transactions financing export sales.
Withholding at source local providers: 5 If The amount is greater than or equal to 25 000 CFA francs
- Tax Benefits
- Scope of application
Industrial Enterprises as well as those of all sectors of particular interest or importance for the achievement of the objectives of the National economic and social development Plan.
- Tax Benefits
The main exemptions relate to customs duties, VAT and corporate taxes.
- Specific schemes
In Senegal, a common incentive law is set up instead of the derogatory tax regimes whose dieback is programed according to a timetable.
As in the case of income tax, the legislator has provided a very large number of credits and tax cuts to reduce the.
They come to support certain expenses and may in some cases prove to be very interesting.
So we can cite the following tax advantages:
- Tax reduction for investment of profits in Senegal (ART 232 to 239 of the CGI),
- Tax reduction on BIC, BNC and BA for investment in the field of solar or wind energy (CGI ART 240 to 244-30% of the sums actually paid for eligible investments);
- Tax reduction for income investment in Senegal;
- Investment Tax Credit (Art 249 to 252 of the CGI) for companies that realize at least 100 million of investment or for an SME if the investments are greater than 15 million: reduction equal to 40% of the amounts invested capped at 50% of the Taxable profit (70% in the non-Da Kar regions) and is Beat Over 5 years (Possibility To spread it over 5 years from the following year the closing of the investment Programme)
- Export Tax Reduction (ART 253 of the CGI): reduction to 50% of taxable profit for industrial, agricultural and Teleservices Which Export 80% of their production (excluding mining and oil companies).
Tax optimization, 8 tips to pay less corporate tax: exemptions
There are two types of exemptions:
- Those Relating to certain incomes,
- Those relating to certain entities.
Thus Some income is expressly exempt from corporate tax (after reintegrating a share of expenses and charges in some cases). This is the case for certain capital gains (e.g. on equity securities) or intra dividend distributions (option for the parent-subsidiary plan).
In addition, certain entities fulfilling strict conditions see their result (or a share of their income) exempt from corporate tax. These include innovative young companies or companies located in certain areas of the territory (export processing companies, mining code approval, approval of the investment code).
Schedule 1: Calendar of tax and social OBLIGATIONS
|Calendar of tax and social bonds|
|Times||NATURE of OBLIGATIONS||SERVICES concerned|
|10 of the following month||Payment of contributions of the IPRES of the month before For companies with 20 or more employees or the quarter preceding||IPRES|
|15 of the following month||Payment of source deductions paid to third parties for remuneration for benefits in respect of rents paid (BRS)||Office Collection|
|15 of the following month||Payment of withholding tax on wages (IR, TRIMF, CFCE) of the month preceding||Office Collection|
|15 of the following month||VAT Declaration and payment of the month before (attach the exempt and targeted invoices)||Office Collection|
|15 of the following month||Payment of the CSS contributions of the month precede for companies with 10 or more employees or the quarter preceding||Css|
|BNC statement (source deductions on foreign providers) and payment||Office Collection|
|15 of the following month||Mobile stamp right of the previous month||Office Collection|
|04-Jan||Application to waive the deposit of withholding tax on income from shares and shares in the fourth quarter of N-1 if the company has not distributed dividends||Office Collection|
|15-Jan||Regularization of the VAT deductions for the previous year||Office Collection|
|20-Jan||Payment of the deposit of withholding tax on the income of shares, shares and bonds||Office Collection|
|31-Jan||Annual return of the year before To staff (State 1024 salaries) and third parties (commissions, fees, annuities etc.) exceeding the sum of 300 000 FCFA per year under penalty of a fine of 200 000 FCFA||Tax Services Centres|
|31-Jan||Declaration and payment of taxes on special vehicles of legal persons due for the previous year||Office Collection|
|31-Jan||Annual declaration for the determination of the contribution on the rental value of the professional prebets, for the debtor of the CEL-VL (Article 333)||Tax Services Centres|
|15-Feb||Payment 1st Instalment IS/IR Provisional||Office Collection|
|28-Feb||Reporting to the single general contribution (TOU)||Tax Services Centres|
|31-March||Regulation of the current year’s municipal tax on advertising||Municipal Perception|
|31-March||Deposit of the summary statement of salaries for the previous year and the supplementary year of the employees under the general scheme and the framework scheme of the IPRES||IPRES|
|30-APR||Payment 2nd Instalment IS/IR Provisional||Office Collection|
|30-APR||Request for reduction or deletion of the 2nd instalment (IS or IR) according to the result of the year in December N-1||Tax Services Centres|
|30-APR||Deposit financial Statements of N-1||Tax Services Centres|
|30-May||Spontaneous payment of the CEL-VL (default of payment enforces the application of a penalty equal to 25% of the MOAmount Of the CEL-VL||Municipal Perception|
|15-June||Liquidation of the IS or the definitive IR of the under N-1||Office Collection|
|20-Jul||Final liquidation of withholding tax on income from shares and shares and bonds||Office Collection|
|20-Jul||Payment of the 16% deposit on amounts paid, not admitted as wages, to directors during the third quarter||Office Collection|
|31-Jul||Payment of the CEL-VA||Tresor|
|15-August||Annual Declaration of the situation of the workforce (DASMO)||Regional Labour Inspectorate|
|30 days after payment||Final liquidation of the IRVM||Office Collection|
|31-Dec||Order of Accounts||Internally|
|31-Dec||Inventory final stock of goods and raw materials||Internally|
|31-Dec||Inventory of tangible property (equipment and furniture)||Internally|
Appendix 2: Tax Benefits
The new General tax Code has dedicated a new tax system Called the Real Simplified Tax (RSI). This Scheme is intended for companies that make annual turnover Compresseds between 50 million and 100 million. However, the Companies carrying out sales, subdivision, rental of buildings or management operations Property are not Concerned.
This Scheme presents the following peculiarities:
- Declaration Quarterly tax, withholding tax on the lE Salary and other amounts paid to third parties ;
Annex 3: Tax SANCTIONS
SECTION 1: Interest in delay
Any taxpayer who has not paid in legal terms his taxes, must pay an interest of simple delay of 5 On the outstanding balance.
Each month or fraction of a month of additional delay gives rise to a payment of a supplementary interest of 0.5%
The applicable interest rate is 10 For Local taxes established by role not paid within the applicable time limits
Cf. Art. 665 of the CGI
SECTION 2 : Fine
Any breach of the declarative obligations (late filing) gives rise to a fine equal to à
200 000 francs (art. 667)
Gives rise to a fine of 5 000 000 francs (art. 668) :
- The Failure to comply with standards-based accounting or the absence of an accounting document that relates to the writings Recorded
- Any Mention of a false niner on an invoice or on a Declaration
- All Competition for the establishment or use of inaccurate documents or information by an expert, a professional structure to hold accounting records of several
The absence of a visa in lieu of an invoice gives rise to a fine of 5 The amount of the exempt VAT due on each invoice not subject to this formality (art. 669)
Section 3 : Penalties
Failure to comply with the obligation to report on the basis or payment of any tax will result in the application of a penalty equal to 25 Of The evaded rights (art. 671).
The penalty is 50% Rights due in the event of Of
- Defect Tax returns collected or Selected ;
- Maneuvers, concealment or bad faith in the declaration, payment or reversion of The tax ;
- Taxation of office
Annex 4: SANCTIONS Criminal
Section 1 : Penalties
is liable to a fine of 5 000 000 to 25 000 000 CFA francs and imprisonment of 2 to 5 years who:
- Fraudulently fugitives or attempts to subtreat Fraudulently To The Establishment or payment A tax, whether concealment, failure to reverse, manoeuvre or any other fraudulent process;
- Diverted taxes Due
Cf. Art 679
Section 2 : Accounting fraud
Is liable to a fine of 5 000 000 to 25 000 000 CFA francs and imprisonment of 2 to 5 years anyone who:
- Keeps an irregular accounting either by holding unlisted and unquoted books and records, or by deliberately omitting to pass or pass all or part of the required paperwork, or by knowingly passing inaccurate or fictitious scriptures, or by Any other process, including by reducing the amounts to be declared;
- is responsible for differences between the ledger entries and the sales journal Book, which is likely to reduce the taxable value.
Cf. Art. 682