Attractive tax incentives
Attractive tax incentives

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Taxation on investment has been streamlined and simplified to boost Senegal’s appeal to FDI. Thus the tax code, originally inspired by the French model, has been reformed ( Law 2004-12 of February 6, 2004) to facilitate tax compliance, simplify procedures, job creation and especially to encourage private investment.

Streamlined tax system

Single Tax Payment (Contribution Globale Unique)

This is a global representative system of taxation grouping following taxes: industrial and commercial profits, minimum fiscal tax, licences, value added tax, lump-sum payroll taxes and alcohol sales licences.

Corporate Tax

Corporate tax dropped from 35% to 25% in 2004. This contributes to the implementation of a common law system as incentive for companies by extending accelerated depreciation, especially in the tourism sector and, secondly, the removal of provision for the replacement of equipment and a tax cut for invested profits.

Income Tax

Individuals fiscally domiciled in Senegal, whatever their nationality, are subject to income tax on their entire income, Senegalese and foreign. This income includes:

  • Income from property
  • Income from movable capital
  • Income from loans, deposits and bonds

Lump Sum payroll tax

The lump-sum payroll tax is established each year by individuals, corporations and organizations that pay salaries to their employees.

Other direct taxes and assimilated taxes:

The minimum tax levied for the benefit of local communities which must be paid by any person residing in Senegal aged 14 and over.
Land ownership tax of finished and unfinished property.

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A package of investment incentives

A new system of incentives (the Investment Code and the Statute of Free Export Company) was established for greater investment protection, improved investment incentives and the inclusion of priority sectors.

ISO 9001 Certified, the APIX One Stop Shop:

  • assists you applying and qualifying for these incentives, if your project is eligible
  • files application for accreditation, permits, licences and accreditations with the Ministry of Economy and Finance
  • helps you get the titles of exemption if appropriate

Your application for approvals are filed in a special fast track system within the relevant administrations and delivered in the following guaranteed response time:

  • 10 working days to obtain compliance with the Investment Code
  • 21 working days to obtain an approval of Free Export Enterprise status

1. Local and sub-regional business activities

The Investment Code (Law No. 2004-06 of 06/02/2004) provides tax benefits for individuals or corporations who want to invest in identified sectors.

The Investment Code defines as investor "any person or entity, Senegalese or foreign, performing investment operations in the territory of Senegal which abide by the Investment Code."

2. Export activity

The Free Export Enterprise statute is granted to companies exporting 80% or more of their output. Agriculture in its broadest sense and teleservices industry sectors are eligible. Relevant legislation: Law No. 95-34 of December 25, 1995, as amended by Act No. 2004-11 dated February 6, 2004. Implementation decree No. 96-869 of October 15, 1996, as amended by Decree No. 2004-1314 of 28 September 2004

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