Business Environment

flag Senegal Senegal: Business Environment

In this page: Accounting Rules | Tax Rates | Intellectual Property | Legal Framework | Standards | Business Practices


Accounting Rules

Tax Year
The fiscal year begins on January 1st and ends on December 31st of the same year.
Accounting Standards
A new Common General Accountancy Plan, named as the West African Accounting System was put in place in the Western African Union since 1st January 1998. For more information, consult the website Invest in Senegal. The main objective: establishing uniform accounting practices in the Union so as to have homogeneous data.
Accounting Regulation Bodies
Association of Accountancy Bodies of West Africa (ABWA)
Accounting Reports
A balance sheet, a profit and loss account, and the annexes. For more information visit the website of the West African Economic and Monetary Union (West African Economic and Monetary Union (UEMOA)).
Publication Requirements
At the end of each accounting year, companies have to produce summary tables and financials which include:
- Statement of financial analysis.
- Statement of patrimonial accounts balance
- Balance sheet, profit and loss account
- Funds statement and evolution of the working capital
- Identification form of the company
- off-balance sheet commitments (contingent liabilities)
- Statistical annexes
These various tables and documents are presented on normalized printed forms, called CUCI states (Single Centre for the Collection of Information).
Professional Accountancy Bodies
ONECCA (in French) , National Order of Certified Public Accountants and Chartered Accountants of Senegal.
Certification and Auditing
The financial statements of companies must be audited by a qualified auditor member of the ONECCA.
You can consult an external auditor: Ernst&Young, Deloitte, PricewaterhouseCoopers.
Accounting News

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Tax Rates

Consumption Taxes

Nature of the Tax
Value Added Tax (VAT)
Tax Rate
Reduced Tax Rate
The reduced rate is 10% and only applies to tourism services. A 17% special tax rate applies to financial activities (replacing the VAT).
Other Consumption Taxes
Excise taxes exist on beverages (50% for beverages containing alcohol plus an additional tax ranging from XOF 1,500 to XOF 5,000 per litre, and 5% for sparkling beverages), tobacco (65%), coffee (5%), tea (5%), fat (rate varies from 10% to 15%), private cars with a horsepower higher than 13CV (10%), cosmetic products (15%), oil products, plastic bags (XOF 300 per kg), fats and charcuterie (10 to 15%), textile products (5%).
Owners of motor vehicles (car, truck, or motorbike) must pay an annual tax of XOF 1,000 per hectolitre. Companies owning or renting vehicles for more than 15 days a year are liable to an annual tax with rates ranging from XOF 50,000 to XOF 200,000.
Imports are subject to customs duties, as well as to: a statistical import charge of 1%; a community solidarity levy of 0.8%; the Economic Community of West African States (ECOWAS) levy of 0.5% (only applicable to products originating from non-ECOWAS countries; and the Senegalese Shippers Council (COSEC) royalty of 0.4% (only applicable on importation by sea).
Industrial operators are subject to an Industry Energy Tax at the rate of 2.5%, applied to the pre-tax price of electricity consumed.
Export duty of 4% applies to the customs value of non-monetary gold.

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Corporate Taxes

Company Tax
Tax Rate For Foreign Companies
Resident entities are taxed upon their worldwide income, whereas non-residents are generally taxed via the existence of a permanent establishment (determined in accordance with OECD's standards).
Companies are considered Senegalese residents if they have a registered fixed establishment.
As a general rule, branches are taxed in a similar way to that of corporate income. Nonetheless, a 10% duty is automatically applied to profits generated after corporate income tax (automatic application of the 10% tax on payment on dividends).
Capital Gains Taxation
Capital gains are considered business income and taxed at the ordinary corporate tax rate of 30%. Sales of stocks by a non-resident are also subject to a 30% rate.
Main Allowable Deductions and Tax Credits
Depreciation of tangible and intangible assets is tax-deductible. On the other hand, their rates are not set forth by the Senegalese tax code, but rather are calculated according to the potential obsolescence of assets. Goodwill cannot be amortised for tax purposes.
Start-up expenses can be deducted if they are justified and approved by the shareholders.
Interest charges may be deducted under certain conditions (limited to 15% of the ordinary profits, increased by the depreciation and provisions and the concerned interests).
Bad debts are not tax-deductible, the same as fines and penalties. Donations to recognised charities may be deductible up to 0.5% of turnover. Donations to the COVID-19 Response Fund are also tax-deductible.
Tax losses can be carried forward for up to three years. Losses from asset depreciation can be carried forward indefinitely. The carryback of losses is not permitted.
Reasonable royalties, interest, and management service fees paid to foreign parent companies are generally deductible, provided they are documented.
Other Corporate Taxes
The tax on the built property is levied at a rate of 5% (of the rental value) for buildings other than factories. If the properties are listed in the balance sheet, companies are not liable for the tax. The tax on unbuilt land is 5% of the rental value of the land.
Stamp and registration fees are levied on many commercial transactions at rates varying between 1% and 5% of the relevant act.
Employers are subject to a 3% payroll tax (on gross wage). In addition to this payroll tax, employer contributions amount to 7% of salary for family benefits (capped at XOF 63,000 per month) and 1%, 3% or 5% for work-related accidents (capped at XOF 63,000 per month), 8.4% for old-age pensions (capped at XOF 360,000 per month) and 3.6% for supplementary old-age pension insurance (for executive employees, capped at XOF 1.08 million per month). Contributions for health insurance amount to 15% of salary, up to XOF 250,000.
The Local Economic Contribution is payable by any person carrying on a trade or an industry and consists of two different taxes: the company’s properties contribution (15% for leased premises and 20% for owned premises, lands, and installations, calculated on the 7% of the cost price), and the company value-added contribution (1% on the added value produced in the previous year, capped at 70% of turnover).
The tax on telecommunication services is 5%. Insurance companies must pay a levy of 1% of their turnover. Companies owning or renting vehicles are subject to a tax ranging from XOF 50,000 to XOF 200,000, depending on the type and horsepower of the vehicle.
Industrial operators are subject to an Industry Energy Tax at the rate of 2.5%, applied to the pre-tax price of electricity consumed.
Export duty of 4% applies to the customs value of non-monetary gold.
Other Domestic Resources
General Tax Directorate
Consult Doing Business Website, to obtain a summary of the taxes and mandatory contributions.

Country Comparison For Corporate Taxation

  Senegal Sub-Saharan Africa United States Germany
Number of Payments of Taxes per Year 53.0 36.6 10.6 9.0
Time Taken For Administrative Formalities (Hours) 416.0 284.8 175.0 218.0
Total Share of Taxes (% of Profit) 44.8 47.3 36.6 48.8

Source: Doing Business - Latest available data.

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Individual Taxes

Tax Rate

Individual income tax Progressive rate from 0 to 40%
CFA 0 - 630,000 0%
CFA 630,001 - 1,500,000 20%
CFA 1,500,001 - 4,000,000 30%
CFA 4,000,001 - 8,000,000 35%
CFA 8,000,001 - 13,500,000 37%
Above CFA 13,500,000 40%
Minimum personal income tax (MPIT) (for employees)
CFA 0 - 599,999 CFA 900
CFA 600,000 - 999,999 CFA 3,600
CFA 1,000,000 - 1,999,999 CFA 4,800
CFA 2,000,000 - 6,999,999 CFA 12,000
CFA 7,000,000 - 11,999,999 CFA 18,000
CFA 12,000,000 and above CFA 36,000
Allowable Deductions and Tax Credits
Different abatements and allowable deductions apply to each category of income. By splitting one's income into shares (personal allowances), the taxpayer benefits from the progressive rates for each share.
Certain incomes are not subject to personal income tax, including: severance and retirement allowance; the statutory travel allowance; one trip per year to one’s home country for expatriates and their dependent family; lump-sum for reimbursements of documented professional expenses.
A lump-sum deduction of 30% of earnings is available when determining the taxable base for employment income tax purposes, capped at XOF 900,000.
Special Expatriate Tax Regime
Senegalese tax residents are taxable on their worldwide income. However, salary income is taxable in Senegal, provided that the work is performed in the country or the employer is established there.
There is no special expatriate tax regime.

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Double Taxation Treaties

Countries With Whom a Double Taxation Treaty Have Been Signed
See the list of double tax treaties signed by Senegal
Withholding Taxes
Dividends: 10%; Interest: 8% (on deposits or guaranteed interest on accounts with a bank)/13% (on bond interest)/16%; Royalties: 20%
Bilateral Agreement
Senegal and Mauritius concluded a Double Taxation Agreement.

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Intellectual Property

National Organisations
The trade marks, patents, and copyrights are protected within the framework of OAPI, The African Organization for Intellectual Property.
Regional Organisations
Senegal is a member of the African Intellectual Property Organization.
International Membership
Membership to the TRIPS agreement - Trade-Related Aspects of Intellectual Property Rights (TRIPS)

National Regulation and International Agreements

Type of property and law Validity International Agreements Signed
Protection of patents
20 years
Agreement revising the Bangui Agreement of 2nd March, 1977, on the creation of an African Intellectual Property Organization, 24th February 1999.
10 years, renewable for consecutive periods of 10 years
Agreement Revising the Bangui Agreement of March 2, 1977, on the Creation of an African Intellectual Property Organization, February 24, 1999
5 years, renewable for two further consecutive 5-year periods  
WIPO Copyright Treaty

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Legal Framework

Independence of Justice
Judiciary in Senegal is not completely independent; it is often subjected to political and economic pressures.
Equal Treatment of Nationals and Foreigners
Foreign nationals can, to a large extent, expect an impartial trial from the country’s judicial system.
The Language of Justice
The judicial language used in the country is French.
Recourse to an Interpreter
Having an interpreter is possible.
Sources of the Law and Legal Similarities
The main source of law in the country is the new constitution of 2001. The country’s legal system is based on French civil law system and judicial review of legislative acts. The country accepts compulsory ICJ jurisdiction but with reservations.
Checking National Laws Online
SENLEX: Portal of the Senegalese Law

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National Standards Organisations
ASN, Senegalese Association for Standardization
Integration in the International Standards Network
The Senegalese standards are generally derived from the French ones. ASN is a founding member of the African Organization for Standardization (ARSO), a member of the International Electrotechnical Commission (IEC) Afifliate Country Program, a correspondent member of the International Organization for Standardization (ISO), and a member of the African Electrotechnical Standardization Commission (AFSEC).
Classification of Standards
The Senegalese standards are the NS. For more information consult the ASN website.
Online Consultation of Standards
You can consult the Senegalese standards List.
Certification Organisations
ASN Senegalese Association for Standardization

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Business Practices

General Information
Commisceo GlobalKwintessential, Senegal - Culture, customs and etiquette
Opening Hours and Days
Banks open from Monday to Friday. from 08h30 to 11h00 and from 14h00 to 16h00.
Shopping centres open from Monday to Saturday, from 8h00 to 12h00 and from 15h00 to 19h30.
Administrations are open from Monday to Friday, from 7h30 to 13h00 and from 13h30 to 16h00.

Public Holidays

New Years Day 1st January
El am Hejir - Hegire - New Year Variable
Achoura - Muharrum Variable
Anniversary of the Prophet - Eid-Milad Nnabi Variable
Independence Day 4th April
Labor Day 1st May
End of Ramadan Variable
Eid-ul-Adha or Grand Baïram or Aïd or Tabaski or Id-Ul-Zuha (Bakrid) - Mutton Festival Variable
Christmas 25th December

Periods When Companies Usually Close

New Years Day 1st January
El am Hejir - Hegire - New Year Thursday 10th January 2008 (can vary by one day)
Achoura - Muharrum Saturday 19th January 2008 (can last 2 days)

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Latest Update: May 2024