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Bénin


Summary of the taxes applicable in Benin

Law No. 64-3. of December 3. 196. codifying the duties, incomes taxes and registration, stamp, advertisement and investments income taxes.

 

Excerpt from jord No.. of March. 196. / Order No.. pr / MFAE codifying direct and indirect taxes

 

 

 

 

 

Table 1 : Taxes on industrial, commercial, craft and agricultural profits

 

Taxes on industrial, commercial, craft and agricultural profits

 

Taxable persons

Trade occupations, industrial, craft, agriculture, logging, companies of which the purpose is to research, development, production and sale of natural hydrocarbons including transport operations in Benin which are accessory, and mining companies to be operated by concessionaires, lessees, sub-lessees or operating licensees profits.

 

Public limited companies, limited liability companies and limited partnerships

 

Are also liable to that tax :

 

-       Consumer cooperatives where they own establishments, shops or stores for the sale or delivery of goods, products or cargo ;

-       Cooperatives and unions of artisans cooperatives  ;

-       Individuals and companies engaged in intermediate transactions for the purchase or sale of real estate or business or who usually buy in their own name the same goods to resell, and mortgage companies  ;

-       Individuals and companies that carry out subdivision and sale of land belonging to them ;

-       Individuals and companies renting a commercial or industrial building equipped with furnishings or material necessary for its exploitation, whether the rent includes any or all business or industrial funds intangible elements  ;

-       The contractors, dealers and communal rights farmers ;

-      Public establishments, state or municipal agencies, provided they enjoy financial autonomy and engage in an activity of an industrial or commercial nature and lucrative operations  

 

Exemption

-       Consumer Cooperatives Companies that simply group the orders of their members and to distribute their consignment stores foodstuffs, products or goods which have been the subject of such orders ;

-       Low-cost housing offices ;

-       Mutualist institutions or credit unions regulated by current regulations ;

-       Memorial societies, agricultural cooperative corporations, general interests agricultural associations, mutual agricultural insurance and reinsurance companies  ;

-       Mutual benefit societies ;

-       Public institutions of the State or decentralized authorities ;

-       Local authorities, municipalities and their services boards; ;

-       Chambers of commerce, industry, handicrafts, agriculture and trade, when not engaged in commercial activities ;

-       Non-profit associations and organizations if legally constituted and whose management is disinterested ;

-       Investment companies with fixed and variable capital for the portion of the profits from the net proceeds of their portfolio or capital gains they realize on the sale of securities or shares being part of this portfolio ;

-       New regularly established businesses under their first year of operation

-       Most capital gains on the disposal of securities and perceived by individuals

 

Rate

Any portion of the taxable income of less than 1,000 francs is neglected

 

The tax rate is set at 25% of taxable income for :

-       The individuals (sole trader) ;

-       Individuals or corporate entities having an industrial activity ;

-       The partners or members of the general partnerships, limited partnerships, joint ventures, individual companies, economic interest groups ;

-       Managing majority shareholder of limited companies, regarding the remuneration paid to them for their actual work ;

-       Mining companies regarding the benefits derived exclusively from the exploitation of a deposit of mineral substances

 

The rate is set at 30% of taxable income for corporations other than industries

 

Taxes can not be less than two hundred thousand (200,000) CFA francs

However, the benefits of research, exploitation, production and sale of natural hydrocarbon, including transportation operations in the Republic of Benin which are accessory are subject to tax on industrial and commercial profits at a rate between 3. and 45% under the terms of the research and exploitation contract

 

·         Tax reduction

For taxpayers members of approved management centres, the tax rates are reduced by 40% for four years from their date of accession.

An additional 10% discount is given to members working in the primary sector

 

                Table 2 : Company car tax

 

Company car tax:

 

Taxable products

Vehicles registered in the category of private passenger transport owned or used by companies or by any public or private industrial and commercial nature are subject to a non-deductible annual fee for the establishment of the tax on industrial, commercial, craft and agricultural profits

Rate

150,000 FCFA for vehicles of which the fiscal capacity does not exceed 7 HP

200,000 FCFA for other vehicles

 

Table 3 : Progressive wages tax

 

Progressive wages tax

 

Taxable income

There shall be a progressive tax on income from salaries, emoluments and public and private wages, as well as accessories payments of any kind

Salaries, emoluments, accessories salaries and fees are taxable :

-          Where the recipient is resident in Benin as the paid work is carried out outside of Benin or the employer is resident or established outside of Benin ;

-          When the recipient is domiciled outside Benin provided that paid work is exercised in Benin or the employer is resident or established in Benin

 

Exemption

Are exempt from tax severance payments, assistance and allowances majority of wages or compensation of a social security nature.

For private sector employees, the portion of those benefits or increases is situated above the amount payable by the National Fund of Social Security officials similarly qualified in the same grade and the same financial situation, is not freed

Rate

The tax is calculated by applying to the tax base the following progressive rates :

0% to the less than or equal to 50,000 francs bracket

10% for the portion between 50,00. and 130,000 francs

15% for the portion between 130,00. and 280,000 francs

20% for the portion between 280.001et 530,000 francs

35% for the portion above 530,000 francs

 

 

 

Table 3 : Tax on non-commercial profits

 

Taxes on non-commercial profits

 

Taxable transactions

Annual income tax for liberal professionals, for offices whose holders do not have the quality merchants and all occupations, farms and lucrative sources of profit not subject to a special tax on income, with the exception of capital gains realized on the disposal of securities and received by persons not having the status of trader

Rate

The tax rate is set at 25% of taxable income for :

-          The individuals

-          The partners or members of the general partnerships, limited partnerships, joint ventures, individual companies, economic interest groups, including the sole shareholder of individual single-member companies who have opted for the tax system on income

-          Professional civil companies

-          Managing majority shareholder of limited companies, regarding the remuneration paid to them for their actual work

 

·         Tax reduction

For taxpayers members of approved management centres, the tax rates are reduced by 40% for four years from their date of accession.

 

 

 

 

 

 

Table 4 : Value Added Tax

 

Value Added Tax

 

Taxable persons/activities

The business done in Benin by individuals or corporate entities who regularly or occasionally buy for resale or perform procedures covered by a trade, business, craft or non-commercial activity excluding employed activities and agricultural activities are subject to value added tax.

 

Constitute taxable transactions :

-       mports

-       Sales

-       Construction works

-       Services

 

The following shall also be subject to value added tax :

-       The operations of processing of agricultural and fishery products and any other operations even performed by farmers, fishermen or their cooperatives who, because of their nature or importance are similar to those made by manufacturers or retailers, these operations or do not constitute an extension of agricultural or fish farming ;

-       Deliveries of a taxable person to itself, for its own needs or those of its operations and those made by him, free of charge, for the profit of third parties

-       Telecommunications related services

-       The supply of water and electricity and all ancillary activities

-       Any gainful occupation other than farming and wage employment

 

Rate

VAT rate is 18%

 

 

 

Table 5 : Duty on beverages

 

Duty on beverages

 

Taxable persons/activities

Beverages imported or manufactured in Benin and delivered for local consumption

Imports or sales of beverages, with the exception of non-carbonated water, for consideration or free of charge and carried out in law or in fact to the delivery conditions in the territory of Benin

Rate

3% for soft drinks

10% for alcoholic beverages such as beer and cider

15% for wines

30% for liquor and champagne

 

It is applied :

-          At the moment of import, value plus customs duties and taxes payable at the entrypoint, with the exception of the value added tax

-          Within the internal system, the ex-factory selling price excluding tax value

 

 

Table 6 : Tax on wheat flour

 

Tax on wheat flour

 

Taxable persons/activities

Imported wheat flour or manufactured in Benin and delivered for local consumption

Imports of wheat flour or disposals for consideration or free of charge and carried out in law or in fact to the delivery conditions in the territory of Benin

Rate

The rate is 1%

 

It is applied :

-          At the moment of import, value plus customs duties and taxes payable at the entrypoint, with the exception of the value added tax

-          Within the internal system, the ex-factory selling price excluding tax value

 

 

Table 7 : Tax on perfumery products

 

Tax on perfumery products

 

Taxable persons/activities

Perfumery and cosmetics products imported or manufactured in Benin and delivered for local consumption

Imports or sales of perfumery and cosmetics products for consideration or free of charge and carried out in law or in fact to the delivery conditions in the territory of Benin

Rate

The rate is 5%

It is applied :

-          At the moment of import, value plus customs duties and taxes payable at the entrypoint, with the exception of the value added tax

-          Within the internal system, the ex-factory selling price excluding tax value

 

 

Table 8 : Tax on oils and fats

 

Tax on oils and fats

 

Taxable persons/activities

Oils and fats imported or manufactured in Benin and delivered to local consumption

Imports or sales of oils and fats for payment or free of charge and carried out in law or in fact to the delivery conditions in the territory of Benin

Rate

The rate is 1%

 

It is applied :

-          At the moment of import, value plus customs duties and taxes payable at the entrypoint, with the exception of the value added tax

Within the internal system, the ex-factory selling price excluding tax value

 

 

 

Table 9 : Single specific tax on petroleum products

 

Tax on petroleum products

Taxable persons/activities

Imports or sales of petroleum products for profit or free of charge and carried out in law or in fact to the delivery conditions in the territory of Benin

Rate

The rate of the tax is set at :

65 francs per liter for premium gasoline

55 francs per liter for regular gasoline

0 francs per liter for oil

20 francs per liter for diesel

17 francs per liter for lubricants (oils)

0 francs per liter for fuel oil

23 francs per liter for fats

0 francs per kilogram for LPG (butane)

 

 

 

Table 10 : Tax on tobacco and cigarettes

 

Tax on tobacco and cigarettes

 

Taxable persons/activities

Tobacco and cigarettes imported or manufactured in Benin and delivered to local consumption

Imports or sales of tobacco products for profit or free of charge and carried out in law or in fact to the delivery conditions in the territory of Benin

Rate

The rate is 30%

It is applied :

-          At the moment of import, value plus customs duties and taxes payable at the entrypoint, with the exception of the value added tax

-          Within the internal system, the ex-factory selling price excluding tax value

Table 11 : Radio and television domestic tax  

 

Radio and television domestic tax  

Taxable persons/activities

A radio and television tax whose inner operative events include respectively the possession of radio or television or telephones regardless of the date of acquisition during the year

Rate

The annual tax rate is :

-          CHF 500 for a telephone

-          300 francs a television receiver

-          700 francs for two devices

-          900 francs for three devices

-          1200 francs for more than three devices

 

 

Table 12 : Financial Activities Tax

 

Tax on financial activities

 

Taxable persons/activities

Financial activities (TAF)

Transactions by banks, exchange offices and financial institutions, with the exception of those that are not specifically related to trade in money values.

Exemption

Are exempt from tax on financial activities (TAF) :

-          Operations carried out by the BCEAO

-          The operations of loans and credits to the Treasury and local governments

-          Disposal operations of special certificates of wage claims on Government

-          The operations of credit, loan, advance, deposit account, commitments or similar transactions between banks and financial institutions, among financial institutions or not installed in Benin

-          The operations that are not related specifically to trade in securities and cash and which are subject to tax on the added value such as: sales, rentals, leasing, studies and consultations, charge transfers, factoring and similar transactions

-          Lending transactions made by banks to construction companies, economic or social housing they are accepted and where reference prices are set by the government

Rate

The tax rate is 10%. It applies to the gross amount excluding tax interest, fees and other remuneration received by banks and financial institutions

 

Table 13 : Tax on games of chance

 

Tax on games of chance

 

Taxable persons/activities

The tax is based on the sale price of the tickets or tickets for various games available to the public .

Rate

The rate is 5%