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Taxes in Senegal

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Do you have to pay taxes in Senegal? What are the types of taxes and rates applied? Find out in this article.

Tax will definitely be one of your main concerns if you are going to work or to set up a business in Senegal. But beforehand, you are advised to inquire on the different types of taxes existing in the country and on conditions attached.

Tax system

Taxes in Senegal either have to be paid or are withheld. But in all cases, you are required to fill a tax return which you are required to submit to the tax administration. This also applies to workers earning wages in the country. Note that income tax is withheld at source. The tax declaration has to be completed and filed by March 1st of each year. Failure to do so might result in penalties.

The fiscal year starts on January 1st and ends on December 31st. Senegal residents are therefore required to pay personal income tax. Employers, for their part, will deduct tax at a rate of 6% on foreign employees’ wages.

Income tax is deducted according to the employee's salary level. Hence, a 50% tax rate will be deducted from the highest salary. Moreover, residents having any other source of income have to make an annual declaration.

You can obtain the tax declaration form at the nearest Tax Service Center to your place of residence or on the General of Taxes and Domains Directorate website.

Calculation

As regards tax calculation, there are two trends: one is based on a proportional law while the other is based on a progressive ranging over 10 income brackets. On this progressive scale, rates range from 0 to 50% tax. The amount withheld generally depends on the number of units (with a minimum of 5) as well as annuities, pensions, life insurance premiums, voluntary contribution to the pension and benefits declared, etc.

Foreign retirees

Since 2014, foreign retirees in Senegal are entitled to a 80% discount on their annual tax, compared to a 30% discount until early 2013. According to Article 176 of the General Senegalese Tax Code:

tax payers who exclusively enjoy pensions and annuities from foreign sources, assessed on their statement are entitled to the 80% tax discount under the conditions provided for in the last paragraph of Article 59 of this Code

where a taxpayer has pensions and annuities from foreign sources and other sources of income which are taxable in Senegal, his overall contribution will then be taxes according to the total pensions and annuities from foreign sources and the total of tax payable on other income of the taxpayer.

To be eligible to this discount, concerned taxpayers have to deposit these income in a CFA francs.

  • bank account opened in Senegal as residents under current exchange regulations. The following documents are also required:
  • proof of payment of pensions or arrears established by the “débirentier” or other document in lieu thereof,
  • a certificate stating the amount in foreign currency received on behalf of the pensioner or annuitant and the counter-value in CFA francs on the day of transfer, issued by the financial institution or any other body involved in the payment of pensions or arrears.

Note that foreign retirees are eligible to the income tax payment provided they have resided in Senegal for at least 6 months and 1 day. Otherwise, they will have to pay tax in their home country.

Property income tax

You will have to pay property taxes if you have:

  • built-up properties (houses and factories)
  • income from industrial establishments committed to perpetual remains fully or relying on special foundations integral with the building,
  • revenues of all commercial and industrial facilities similar to buildings
  • income from any kind of undeveloped land, including those occupied by quarrying, mining, ponds, salt and salt marshes, etc.

The rate ranges from 7.5% of the real property value in the case of factories and industrial premises and 5% for others.

 Useful links:

Expat.com - Senegal Taxes Forum 
Taxes and Domains www.impotsetdomaines.gouv.sn
Taxes and Domains - Forms www.impotsetdomaines.gouv.sn/fr/formulaires
Invest Senegal - Direct taxes in Senegal investinsenegal.com
Public Service (Senegal) www.servicepublic.gouv.sn
Tax Services Centers www.servicepublic.gouv.sn/index.php

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