Accounting and tax

legal obligations for Senegal companies

  1. Corporate tax in Senegal is levied at a standard rate of 30%. A reduced rate of 15% is levied on companies with “Free Exporting Enterprise” status, granted if they export over 80% of their products. If a company does not derive a taxable profit for a given year, the minimum tax of 0.5% of the turnover from the preceding year applies;
  2. The tax year in Senegal is the calendar year and annual tax returns must be filed by 30th April of the subsequent year. Penalties vary based on nature of tax and/or violation;
  3. Branches pay a corporate tax rate of 30% plus an additional 10% withholding tax on branch remittances. Under certain circumstances, VAT of 18% may be imposed on branch remittances;
  4. All corporate businesses are required to register for VAT. The standard VAT rate levied on provision of goods and services in Senegal is at a rate of 18%. Services involving accommodation and food provided by approved tourist accommodation establishments are subject to a reduced VAT rate of 10%. All VAT returns must be submitted monthly by the 15th of the subsequent month;
  5. Capital gains tax in Senegal is subject to the standard applicable corporate tax rate. The tax may be deferred in the event of a merger or acquisition of another corporate entity;
  6. Withholding tax is levied in Senegal on i) dividends at the rate of 10%, ii) interest at the rate of 16%, while 8% is levied on interest generated on a bank or stockbroker’s account and 20% on interest on cash vouchers, iii) royalties at the rate of 20% and iv) technical service fees at the rate of 20%, unless the rates are reduced under a tax treaty;
  7. Net operating losses can be carried forward for up to three years. Losses may be carried forward indefinitely, but only if they result from depreciation of assets;
  8. Capital duty is taxed at a rate of 1% of capital exceeding US$200,000, otherwise the duty is US$60. A 1% tax applies on a capital increase and a 1% tax applies for real estate contributions;
  9. Employers must submit to the relevant authorities i) payroll tax at the rate of 3% of taxable gross salary, ii) social security tax at the rate of 7% for family benefits and from 1% to 5% for industrial accidents depending on the line of business, iii) national retirement fund contributions at the rate of 60% on behalf of their employees;
  10. Transfer tax is levied at the rate of i) 10% on real property ii) 1% on shares and shareholder’s current accounts and iii) 10% on goodwill;
  11. Banking transactions are taxed at the rate of 17% on financial transactions;
  12. Exchange-control regulations exist in Senegal for financial remittances outside the West African Economic and Monetary Union (UEMOA);
  13. Senegal has signed multilateral tax treaties with the other member states of UEMOA which include Benin, Burkina Faso, Cote d’Ivoire, Guinea-Bissau, Mali, Niger, and Togo. Senegal has also signed bilateral tax treaties with Belgium, Canada, France, Italy, Mauritania, Mauritius, Morocco, Norway, Qatar and Tunisia;
  14. Healy Consultants Compliance Department will assist our Clients with i) documenting and implementing accounting procedures ii) implementing financial accounting software iii) preparation of financial accounting records and iv) preparing forecasts, budget and sensitivity analysis;
  15. It is important our Clients’ are aware of their personal and corporate tax obligations in their country of residence and domicile; and they will fulfill those obligations annually. Let us know if you need Healy Consultants’ help to clarify your annual reporting obligations.

Contact us

For additional information on our accounting and tax services in Senegal, please contact our in-house country expert, Mr. Simon Guidecoq, directly:
client relationship officer - Simon
apix, investment promotion and major projects in Senegal senegal chamber of commerce industry and agriculture senegal ministry of trade, informal sector, consumer affairs, promotion of local products and SMEs senegal ministry of economics and finances IPRES - institution Provident Retreat Senegal social security fund of Senegal senegal-bank