Senegal

Senegalese tax residents are taxable on their worldwide income.

In any cases, salary income is taxable in Senegal, provided that the work is performed in Senegal or the employer is established there.

The personal income tax (PIT) corresponds to a progressive duty to be applied to the taxable income of individuals, including net salaries.

Personal income tax rates

By splitting one's income into shares (personal allowances), the taxpayer benefits from the progressive rates for each share. To calculate the total tax payable, the tax corresponding to each share is thereafter multiplied by the number of shares. The following scale shows the different rates applicable to income.

* Communauté financière d'Afrique (Financial Community of Africa or CFA) francs

Minimum personal income tax (MPIT)

Any employee is liable to MPIT, and the amount is fixed as follows:

Withholding taxes (WHTs)

WHT on remuneration paid for services rendered by local providers

The Senegalese debtor must withhold 5% on remuneration paid to individuals who are resident in Senegal in exchange for services. This WHT is only applicable when the service is provided by an individual liable for tax under the lump-sum taxation regime (very small businesses), when the provider is not able to prove its tax registration (for instance, one does not have a tax identification number), or when the provider is a tax-transparent entity that has not opted for corporate income tax (CIT) liability.

The Senegalese debtor must pay the amount withheld to the tax authorities within 15 days following the month of payment of the invoice.

WHT on remuneration paid for services rendered by foreign single providers or foreign companies

See the Withholding taxes section in the Corporate tax summary for a description of WHT on remuneration paid for services (including royalties) rendered by a foreign individual or foreign company.

WHT on rent for real estate

Rents paid to individuals are subject to a 5% WHT, which shall be withheld at source by the lessee.

The WHT on rent is not applicable in the following cases:

• The monthly rent is less than XOF 150,000.
• The rent is paid to a company (the real beneficiary), provided that it is subject to CIT.
• Individuals paying rent to a real estate agency that remits the payment to the owner.

This WHT shall be paid to the tax authorities within 15 days after the month of payment of the rent. In addition, a quarterly and annual recapitulative declaration shall be filed.

WHTs on financial incomes

Tax is withheld at source from the following income (subject to double tax treaties [DTTs] and specific exemptions):

• Dividends: 10%. When the company pays the dividend, it should apply the WHT. There is a complex system of quarterly instalment payments.
• Bond interest: 13%. The amount withheld must be paid in four equal instalments (within the first 20 days of January, April, July, and October of each year).
• Deposits or guaranteed interest on accounts with a Senegalese bank: 8%. The amount withheld is paid by the bank prior to the 15th day of the month following the month of payment or posting.
• Other revenues, notably interest on loans: 16%. The amount withheld is paid within 15 days of the month following the month of payment or posting.