Tax Basics for Entrepreneurs in Senegal
Corporate tax, VAT, payroll obligations, deadlines, and what every international entrepreneur needs to know before launching in Senegal
Important disclaimer — read first
This guide provides general educational information about the Senegalese tax system. It is not professional tax advice.
Tax laws change regularly and your specific situation depends on your business structure, revenue, sector, and residence status.
Before making any tax decisions, consult a qualified Senegalese accountant (expert-comptable) or tax lawyer.
The Visene concierge team can connect you with trusted professionals in Dakar.
At a glance — Key tax rates in Senegal (2026)
Corporate Income Tax (IS)
0% of taxable profit (min. 0.5% of turnover), All companies — SARL, SAS, SAVAT (TVA)
18% standard rate Companies with turnover > XOF 50M/year
Tourism sector VAT
10% reduced rate Hotels, tour operators, tourism services
CGU (small business simplified tax)
1% to 8% of turnover (by sector) Turnover under XOF 50M/year — replaces IS + VAT
BIC (industrial & commercial profits)
30% — same as IS Applies when no formal company structure
Personal Income Tax (IRPP)
Progressive 0%–43% Employees + business owners drawing salary
Social security (CNSS)
Employer: 14% / Employee: 5.6% of gross salary All employers with employees
IPRES (pension)
Employer: 8.4% / Employee: 5.6% of salary All employers with employees
Withholding tax on dividends
10% Distributed to non-resident shareholders
Capital gains tax
30% On disposal of company assets
Financial Activities Tax
17% (replaces VAT for banking/finance) Banks, money transfer, financial services
Understanding the Senegalese Tax System
Senegal's tax system follows the SYSCOHADA accounting framework — the pan-African business law system covering 17 countries. This means the accounting principles and company tax obligations in Senegal are broadly aligned with those in Ivory Coast, Cameroon, and other OHADA member states.
For entrepreneurs, there are essentially two tax regimes depending on your company’s turnover:
- Régime réel (standard regime): for companies with annual turnover above XOF 50 million (approx. EUR 76,000). You pay Corporate Income Tax (IS) at 30% and monthly VAT at 18%.
- CGU (Contribution Globale Unique): for small businesses with annual turnover below XOF 50 million. A single simplified tax replaces IS, VAT, and other obligations. Rate varies from 1% to 8% of turnover by sector.
Most new international businesses will start in the CGU regime and transition to the régime réel as they grow. Understanding which regime applies to you is the first step.
Corporate Income Tax (IS — Impôt sur les Sociétés)
All companies registered in Senegal with annual turnover above XOF 50 million pay the IS. This includes SARL, SAS, and SA companies.
The corporate income tax rate is 30% of taxable profit. However there is an important minimum: you pay whichever is higher — 30% of profit or 0.5% of turnover. This minimum tax (impôt minimum forfaitaire) means that even a loss-making company pays at least 0.5% of revenue in tax.
| Scenario | What you pay |
|---|---|
|
Profitable company Turnover: XOF 200M Profit: XOF 40M |
30% × XOF 40M = XOF 12M Corporate Income Tax (IS) |
|
Break-even company Turnover: XOF 200M Profit: XOF 0 |
Minimum IS applies 0.5% × XOF 200M = XOF 1M |
|
Loss-making company Turnover: XOF 200M Loss: XOF 20M |
Still pays minimum IS of XOF 1M |
|
New company First full year of operation |
No instalment payments during Year 1. Full tax due by 15 June of Year 2. |
Taxable profit is not the same as accounting profit. You must add back certain non-deductible expenses and apply specific rules. The main adjustments:
- Deductible expenses: employee salaries, rent, utilities, professional fees, depreciation of assets, interest on business loans
- Non-deductible expenses: personal expenses mixed with business, excessive management fees paid to related parties, fines and penalties, entertainment above certain thresholds
- Depreciation: straight-line or declining balance — ask your accountant which applies to each asset category
- Loss carryforward: losses can be carried forward for up to 3 years to offset future profits
Concrete examples
- 1st instalment: 1/3 of previous year’s tax — due 15 February
- 2nd instalment: 1/3 of previous year’s tax — due 30 April
- Balance payment: any remaining tax due — 15 June
- New companies (first year): no instalments — pay full tax by 15 June of the following year
- Late payment penalty: 5% immediately + 0.5% per additional month of delay
CGU — The Small Business Simplified Tax
The Contribution Globale Unique (CGU) is a major simplification for small businesses. If your annual turnover is below XOF 50 million (approx. EUR 76,000), you can pay a single flat tax on turnover that replaces all the following: Corporate Income Tax (IS), VAT, the professional tax (patente), and the land tax (contribution foncière des propriétés bâties).
CGU — Why this matters for international entrepreneurs
If you are starting a consulting, services, or small commerce business in Senegal, you will likely qualify for the CGU in your first years. This means one simple payment instead of multiple tax declarations. Much less administrative burden. Much lower accounting cost. As soon as your turnover crosses XOF 50 million — you transition to the standard regime automatically.
CGU rates by sector
| Business Sector | CGU Rate on Turnover | Example: XOF 30M Turnover |
|---|---|---|
| Liberal professions (consultants, lawyers, accountants) | 2% | XOF 600,000 (EUR 915) |
| Services — General | 2% | XOF 600,000 (EUR 915) |
| Small Commerce — Retail | 2% | XOF 600,000 (EUR 915) |
| Artisan Trades and Crafts | 1% | XOF 300,000 (EUR 458) |
| Import-Export | 3% – 5% | XOF 900,000 – 1,500,000 |
| Restaurants and Catering | 2% | XOF 600,000 (EUR 915) |
| Transport | 3% | XOF 900,000 (EUR 1,373) |
| Construction and Real Estate | 4% – 8% | Variable |
VAT (TVA — Taxe sur la Valeur Ajoutée)
Who Must Register for VAT
VAT registration is mandatory for all companies with annual turnover above XOF 50 million . Companies below this threshold generally operate under the CGU regime and are not required to charge or file VAT separately.
VAT Rates in Senegal
How VAT Works in Practice
VAT is collected on your sales (output VAT) and recoverable on your business purchases (input VAT). Each month you remit the difference to the tax authority.
| Example | Amount |
|---|---|
| You invoice a client for consulting services | EUR 10,000 |
| Output VAT charged (18%) | EUR 1,800 |
| Business expenses + VAT | EUR 2,000 |
| Recoverable Input VAT (18%) | EUR 360 |
| VAT payable to DGID | EUR 1,440 |
Electronic Invoicing Requirement (2025)
The 2025 Finance Law introduced mandatory electronic invoicing through an approved platform or public portal for all VAT-registered businesses.
Non-compliance may trigger a penalty of 25% of VAT due, capped at XOF 5 million. Ensure your accounting software is compliant and consult your accountant if necessary.
VAT Filing Deadline
VAT returns must be filed and paid monthly.
Late filing may result in penalties. File on time even if you have no VAT to declare.
Need help navigating Senegalese tax obligations?
Our concierge team can connect you with a qualified Senegalese accountant (expert-comptable) who works with international entrepreneurs. Getting the right advice from day one saves significant money and stress. Book a free call.
Payroll Taxes and Social Charges
If your company employs people in Senegal — even one person — you have mandatory payroll obligations. These are significant and often underestimated by new employers.
Social Security (CNSS — Caisse Nationale de Sécurité Sociale)
Pension Fund (IPRES — Institution de Prévoyance Retraite du Sénégal)
Personal Income Tax (IRPP) — withheld at source
You must withhold personal income tax from employee salaries and remit it monthly to the DGID. The IRPP is progressive:
| Annual Income Bracket (XOF) | Annual Income Bracket (Approx. EUR) | IRPP Rate |
|---|---|---|
| 0 — 630,000 | 0 — EUR 960 | 0% (Exempt) |
| 630,001 — 1,500,000 | EUR 960 — EUR 2,288 | 20% |
| 1,500,001 — 4,000,000 | EUR 2,288 — EUR 6,101 | 30% |
| 4,000,001 — 8,000,000 | EUR 6,101 — EUR 12,202 | 35% |
| 8,000,001 — 13,500,000 | EUR 12,202 — EUR 20,591 | 37% |
| Above 13,500,000 | Above EUR 20,591 | 43% |
Total Employer Cost per Employee — Example
| Cost Component | Amount |
|---|---|
| Gross Salary Paid to Employee | XOF 300,000 |
| CNSS Employer Contribution (14%) | XOF 42,000 |
| IPRES Employer Contribution (8.4%) | XOF 25,200 |
| IRPP Withheld from Employee Salary | Variable — depends on bracket |
| CNSS Employee Contribution (5.6%) | XOF 16,800 — withheld from salary |
| IPRES Employee Contribution (5.6%) | XOF 16,800 — withheld from salary |
| TOTAL EMPLOYER COST (Approx.) | XOF 367,200 — approx. EUR 560/month |
Annual Tax Calendar
Missing a tax deadline in Senegal attracts automatic penalties. Mark these dates in your calendar from day one.
| Deadline | What is Due | Who This Applies To |
|---|---|---|
| 31 January | Annual payroll summary (DISA) for prior year. Summary of all payments to service providers. | All employers + companies with service contracts |
| 15 February | 1st instalment of Corporate Income Tax (1/3 of prior year’s tax) | IS taxpayers (régime réel) — not new companies in year 1 |
| End of each month | Monthly VAT return + payment for prior month | All VAT-registered companies (turnover > XOF 50M) |
| End of each month | Monthly payroll tax (IRPP) + CNSS + IPRES declarations | All employers with employees |
| 30 April | 2nd instalment of Corporate Income Tax (1/3 of prior year’s tax) | IS taxpayers — not new companies in year 1 |
| 30 April | Corporate tax return (IS) for prior financial year + financial statements | All IS taxpayers |
| 15 June | Balance of Corporate Income Tax for prior year | All IS taxpayers |
| 15 June | Full IS payment — new companies (first year only) | Companies in their first full fiscal year |
| Quarterly | CGU payment — quarterly instalments | CGU regime companies (turnover < XOF 50M) |
Accounting Obligations
What every company must maintain
Books of Account
Books of account in French — the SYSCOHADA accounting system applies
Document Retention
All receipts, invoices, and supporting documents — kept for a minimum of 10 years
Annual Financial Statements
Balance sheet, income statement, notes — filed with the tax authority
Electronic Invoicing
Mandatory for VAT-registered companies from 2025 Finance Law
Beneficial Ownership Register
Companies must maintain accurate records of ultimate beneficial owners (AML requirement)
Should You Hire an Accountant?
Yes — and from day one.
The Senegalese tax system is complex and changes with each annual Finance Law. A qualified local accountant (expert-comptable) does far more than file returns:
Specific Tax Considerations for Foreign Entrepreneurs
Double Taxation Treaties
Senegal has tax treaties with France, Morocco, Tunisia, Canada, Mauritania, and several other countries. These treaties prevent your business income from being taxed twice — once in Senegal and once in your home country. Check whether a treaty exists between Senegal and your home country, and structure your business accordingly with professional advice.
Repatriation of Profits
There are no restrictions on repatriating profits from Senegal. However:
- 10% withholding tax applies on dividends paid to non-resident shareholders
- All outbound transfers require supporting documentation (bank, invoice, dividend resolution)
- Transfers must go through a licensed Senegalese bank
- Keep records of all profit distributions and corresponding withholding tax payments
Transfer Pricing
If your Senegalese company transacts with a related entity in another country (parent company, sister company), transfer pricing rules apply. Transactions must be at arm’s length — market rates — and you must file a simplified transfer pricing declaration with your annual tax return. This is relevant if you have a parent company or subsidiary structure.
Branch vs Subsidiary
Foreign companies can also operate in Senegal through a branch (succursale) rather than a separate SARL. Key differences:
Tax Incentives — What APIX Offers
Senegal's investment promotion agency APIX offers significant fiscal incentives for qualifying projects. These are particularly relevant for larger investments in priority sectors.
APIX Investment Promotion Agency
Senegal’s investment promotion agency APIX offers significant fiscal incentives for qualifying projects. These are particularly relevant for larger investments in priority sectors.
Who Qualifies
Priority Sectors
Projects in priority sectors: agriculture, agri-food, tourism, digital technology, energy, health, education, manufacturing.
Investment Threshold
Minimum investment thresholds apply — typically XOF 100 million or more for significant incentives.
Application Required
Application required before starting the investment — retroactive incentives are not available.
Available Incentives
Customs Duty Exemptions
Exemption from customs duties on equipment and materials for the investment phase.
Corporate Income Tax Exemption
Exemption from corporate income tax for a defined period (typically 5–8 years).
VAT Relief
Reduced VAT or exemptions during the construction and investment phase.
Fast-Track Processing
Priority processing for licenses and authorizations.
Key Advice for Getting Tax Right from Day One
Follow these practical steps from the beginning to avoid costly mistakes, penalties, and compliance issues as your business grows in Senegal.
Hire a Local Accountant Early
Hire a local accountant before you register — not after. The structure of your company affects your tax regime from day one.
Identify Your Tax Regime
Identify your tax regime immediately — CGU or régime réel? This determines all your obligations. Your accountant can confirm based on your projected turnover.
Open a Dedicated Business Bank Account
Open a dedicated business bank account — mixing personal and business finances is the most common accounting mistake by new entrepreneurs.
Keep Every Receipt & Invoice
Keep every receipt and invoice — in Senegal, tax audits can go back up to 3 years. Digital copies are accepted but originals must be retained for 10 years.
Meet Every Filing Deadline
Never miss a monthly filing deadline — even if your tax is zero. Late filings attract automatic penalties regardless of the amount owed.
Register Before Hiring
Register for CNSS and IPRES before hiring the first employee — these registrations are mandatory and must precede the employment start date.
Understand Electronic Invoicing
Ask your accountant about the electronic invoicing obligation — as a VAT-registered company you must issue electronic invoices from 2025.
Plan for Growth
If your turnover approaches XOF 50 million — plan the transition to régime réel in advance. Your accountant will guide you through this.
Download the complete Checklist
Download the complete checklist as PDF — enter your email and we'll send it instantly.
Related Guides
Ready to explore business opportunities in Senegal?
Our concierge team connects you with the right people, the right lawyers, and the right opportunities.