Senegal

Value-added tax (VAT)

Subject to certain exclusions, most commercial operations are subject to an 18% VAT.

VAT on tourism activities is 10%.

A 17% special tax on financial activities (mainly banking, money transfers, interest, premiums and other remunerations received on loans, keeping of bank accounts or equivalent, financial intermediation, and change operations) is applicable instead of VAT.

VAT returns must be filed monthly.

Customs duties/Import tariffs

In the case of import of goods, the following tariffs apply:

• Customs duties: 0%, 5%, 10%, or 20%, depending on the nature of the goods.
• Statistical import charge: 1%.
• Community solidarity levy: 0.8% since 1 July 2017 (1% before July 2017).
• Economic Community of West African States (ECOWAS) levy: 0.5% (only applicable to products originating from non-ECOWAS countries).
• Senegalese Shippers Council (COSEC) royalty: 0.4% (only applicable on importation by sea).
• A 1.5% levy for the Customs Modernisation Program was introduced by the 2022 Finance Act. It is applicable to the customs value of eligible goods, excluding those placed under customs and tax regimes promoting investment. 
• A 0.5% levy is added to the fees due for commercial operations carried out outside the legally prescribed hours and for customs computer services (Finance Act 2022). It is applicable to the customs value of eligible goods, excluding those placed under customs and tax regimes promoting investment. 

Excise taxes

The products on which the Senegalese authorities levy excise tax, and the relevant excise tax rates, are as follows:

• Beverages: 25% for beverages containing alcohol, plus an additional tax ranging from XOF 800 to XOF 3,000 per litre; 5% for sparkling beverages and juices.
• Tobacco: 65%.
• Coffee: 5%.
• Tea: 5%.
• Private cars: 10%.
• Cosmetic products: 15%.
• Oil products (rates per nature and per hectolitre):
  • XOF 21,665 for super-petrol.
  • XOF 19,847 for conventional petrol.
  • XOF 3,856 for petrol for the use of pirogues.
  • XOF 10,395 for diesel.
• Plastic bags:
  • For bags with contents:
    • Produced in Senegal:
      • 0.5% of the transfer price of products contained in bags with a volume of less than 20 litres or a weight of less than 25 kg.
      • 0.3% of the transfer price of products contained in bags with a volume of more than 20 litres and weight of more than 25 kg.
    • Imported into Senegal:
      • 0.6% of the customs value of products contained in bags with a volume of less than 20 litres or a weight of less than 25 kg.
      • 0.8% of the customs value of products contained in bags with a volume of less than 20 litres or a weight of more than 25 kg.
  • For bags without contents:
    • Produced in Senegal:
      • 1.5% of the transfer price.
    • Imported into Senegal:
      • 2.5% of the customs value.

• Fats and charcuterie: 15% for butter, milk cream, and substitutes or mixtures containing butter or cream, regardless of the proportions of the mixture; 10% for charcuterie and other fats. 
• Textile products: 5%.

Tax on built real estate

The tax on built real estate applies annually to owners of buildings other than factories and industrial premises. Companies are no longer liable to the tax on built real estate on their properties listed in the balance sheet.

The tax rate is 5%. It is applied on the basis of the rental value of the lands, buildings, etc.

Tax on non-built real estate

The tax on non-built real estate applies annually to owners of land without buildings, factories, industrial premises, or equipment fixed on the land. The tax rate is fixed at 5%. It is applied on the basis of the rental value of the land.

Stamp/registration duties

There are many stamp and/or registration duties, depending on the operations, such as the following:

Payroll taxes

Pay-as-you-earn (PAYE)

All compensation (including salary, cash allowances, and benefits in kind) paid to employees is generally taxable. For the calculation of the personal income tax (PIT) to be withheld by the employer, the tax administration provides a tax table determined on a monthly basis so that no calculation is necessary.

Employer tax

Employers are subject to a 3% tax based on the total gross salaries paid to employees.

Social Security contributions

Social Security contributions are borne exclusively by the employer.

The rate for the industrial accident/occupational disease branch has to be confirmed by the authority when registering the entity with the Social Security Office (applicable rate to be stated within the related certificate).

Retirement contributions

Retirement contributions are payable both by the employer and the employees:

Employment medical coverage

The employer shall subscribe for all employees a medical coverage. The level of coverage depends on the type of agreement concluded with the dedicated organism. Usually, the employee is reimbursed for 80% of medical expenses, even though the law provides a range between 50% and 80%.

The maximum monthly rate is 15%, to be levied on a contribution rate that cannot exceed XOF 250,000, for both the employee and the employer.

Local Economic Contribution (Contribution Economique Locale or CEL)

The CEL is a new contribution replacing the business license tax and consisting of two different taxes:

• the company’s properties contribution, and
• the company value added contribution.

The company’s properties contribution is assessed annually on the rental value of the company’s business premises. The rental value corresponds to 7% of the cost price.

The applicable rates are 15% for leases premises and 20% for owned premises, lands, and installations.

The company added value contribution is based on the added value produced by a company during the previous year. The tax rate is 1%. An upper ceiling of 70% of the turnover applies to the company added value contribution.

Specific tax rates are provided for companies such as operators of public telecommunication networks licensed in Senegal (0.30%) and port facility operators (1.5%).

Tax on telecommunication

The tax rate is 5% on telecommunication use and access. 

Tax on vehicles

An owner of a motor vehicle (car, truck, or motorbike) must pay an annual tax fixed at XOF 1,000 per hectolitre, except for the pirogue gasoline.

Company tax on vehicles

In addition to the tax on vehicles, companies owning or renting vehicles (more than 15 days a year) must pay a specific annual tax on them. Rates range from XOF 50,000 to XOF 200,000, depending on the type and horsepower of the vehicle.

Levy on insurance companies (LIC)

Insurance companies approved in Senegal are liable to the LIC (fixed at 1% and a reduced rate of 0.5% for life insurance).

The basis of the LIC is turnover.

Tax on insurance contracts

• 6% for insurance against risks of any kind of maritime, river, or air navigation.
• 8% for multi-risk home insurance and fire insurance for residential buildings.
• 5% for group insurance, including deferred annuity contracts of less than three years, subject to the exemptions provided for in article 540.
• 7% for life annuity contracts, including deferred annuity contracts of less than three years, subject to the exemptions provided for in article 540.
• 0.25% for export credit insurance.
• 14% for all other insurance.

Sampling of consignments of petroleum products and hydrocarbon stores from foreign-flagged vessels

The taxable basis of this levy shall be:

• For consignment operations: The quantity in net kilograms of imported petroleum products.
• For fuelling: The quantity in net kilograms of hydrocarbons exported. 

This levy is fixed at XOF 10 per net kilogram. The liquidation, recovery, and litigation of this levy are done as in customs.

Parafiscal charge in favour of the Energy Sector Support Fund known as the Industrial Energy Tax

The Industry Energy Tax rate is 2.5%, applied to the price excluding tax, of electricity consumed by the taxable person.

Individuals or entities considered as industrial operators are subject to this tax.

In addition, the electricity consumption of companies that have signed an agreement with the State of Senegal that exempts them from indirect taxes during the period of validity of the said agreement is exempt from this tax. Electricity exports made by SENELEC are also exempt from this tax.

Export duties on non-monetary gold

The rate is fixed at 4% on the customs value of non-monetary gold and is paid at the point of exit from the national territory.

WHT on sale of hydrocarbons by non-resident entities

A tax equal to XOF 0.5 per kilogram sold is due by foreign companies that sell directly to local or foreign authorised importers the hydrocarbons they have in tanks built in Senegal.