Foreign tax credit
Usually, DTTs may provide some tax credit on the basis of the relationship between Senegalese entities and their partners located abroad. For each DTT, the specific process to enforce those tax credits either in Senegal or abroad (depending on the payments directions) are stipulated within that DTT. Nonetheless, as far Senegal is concerned, the practice consisting of enforcing foreign tax credits locally is very rare.
The Investment Code
The Investment Code applies to investments over XOF 100 million (mainly production, processing, industrial, tourism, agricultural, and complex trade). The benefits of the Investment Code include exemption from customs duties, suspension of VAT payment for three years, CIT limitation, etc. The tax benefits are directly integrated in the GTC and do not require administrative authorisation (i.e. as long the requirements are met, the taxpayers may benefit from those tax benefits).
Free export company status
Agriculture, industry, and telecommunications companies that have an exporting potential amounting to at least 80% of their turnover may qualify for the free export company status.
There are several advantages provided by the GTC for companies that qualify, including a CIT rate of 15%, exemption from the CEL, exemption from registration and stamp duty for incorporation or bylaws change purposes, and exemption from employer tax.
The benefit of this status has been extended until 31 December 2024 by the 2022 Finance Act.
There are a wide range of tax incentives, such as the special economic zone, which is an area designed to host economic activities that have a strong impact on economic growth and that focus their activities on exports (industrial activities, agrobusiness, ICT, tourism, medical services, port activities, and services in general).
Companies established within the zone benefit from a preferential tax regime (a 15% CIT, exemption from taxes and duties at the importation, exemption from CEL, etc.)
There are also some tax benefits for companies involved in the mining and petroleum sector (exemption from the CEL, employer tax, VAT [under conditions], etc.).