Senegal

Recent changes to the General Tax Code (GTC)

Finance Law for FY25 has added new provisions to the GTC. 

Key changes of the law are as follows:

Issuance of electronic invoices

The FY25 Finance Law sets the mandatory issuance of electronic invoices via a public invoicing portal or a platform set up by the administration for VAT payers, under penalty of a fine of 25% of the amount of VAT invoiced or due, capped at XOF 5 million (articles 447 and 667 of GTC).

Withholding tax on amounts paid by private healthcare establishments

The new Finance Law establishes a 10% withholding tax on amounts paid by private healthcare establishments to members of the medical and paramedical professions who are not part of their staff (Article 212 ter of GTC). 

Increasing of the rate of the specific tax on tobacco

Initially capped at 65% by article 434 of GTC, the rate of the specific tax on tobacco was increased from 65% to 70% by the FY25 Finance Law.

Alcohol tax: reorganization of the tax base

The Finance Law for FY25 has provided a reorganization of the tax base on alcoholic liquid beverages, which now relates to the quantity of alcoholic liquid contained in each beverage and not to the content.

Tax refund certificate

The Finance Law provides the adoption of the tax refund certificate as the preferred means of payment for refund requests (instead of payment by check or bank transfer). 

The reimbursement by check or bank transfer will only be made upon the decision of the Minister of finance (Article 393 of GTC).

At the same time, submitting the tax refund request electronically has been provided (Article 692 of GTC).

Tax clearance certificate 

The FY25 Finance Law introduces a new obligation to request a tax clearance certificate dated less than 30 days, before any payment to foreign legal entities with permanent professional installations in Senegal, for construction and public works companies, cement producers, mining and oil companies and public service operators or concessionaires (Article 642 bis of GTC).

Ultimate beneficial owner return

Previously the article 667 of GTC provides that any breaches of obligations relating to beneficial owners return are subject to a fine of XOF 10 million. FY25 Finance Law provides a reduction of the amount of the fine applicable from XOF 10 million to XOF 1 million for taxpayers not covered by the tax division in charge of major companies (Article 667 of GTC).

Extension of the benefit of the Export Free Enterprise (EFE) status

The benefit of the Export Free Enterprise (EFE) Status was extended until December 31, 2025 by the article 39 of Finance Law.

Elimination of non-functional commissions

Non-functional commissions have been eliminated by the FY 25 Finance Law, namely the joint commission on registration fees and the joint conciliation commission.

Elimination of tax measures

Tax measures adopted during the Covid-19 pandemic are eliminated by the new Finance Law.