Senegal: Taxes and Costs

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Income tax is high in Senegal, but can be avoided

INDIVIDUAL TAXATION

Non-residents are taxed on their Senegalese-sourced income. The tax declaration is due by 1 March in the year following the base year; late submission is punishable by a surcharge of 25%.

The head of the family is subject to tax on his personal income and the income of his dependants. Under the law, the following can be dependants only if they have no separate income of their own:

• Spouse with no income of her own
• Minor or invalid children
• Children under the age of 25 who are still studying
• Orphaned or abandoned children cared for by the taxpayer

INCOME TAX

Income is generally aggregated and taxed at progressive rates. Taxable income is generally computed by deducting income-generating expenses and other allowable deductions from the gross income.

However, some categories of income, such as income from real estate, are taxed at flat rates.

Rental Income Tax

Income from real estate is taxed at a flat rate of 20% on net income. In computing for the taxable income, the following can be deducted:

• costs incurred in the repairs or maintenance of the property,
• property tax paid by the owner in respect of developed land,
• interests on borrowings in relation to the acquisition, maintaining or repairing the property,
• and 20% of the gross rental income for depreciation and insurance

CAPITAL GAINS TAX

Capital gains tax is levied at a rate of 15% on the net gains realized from the sale of developed and undeveloped land. The seller or the owner of the property is held liable for this tax.

In computing for the taxable capital gains, acquisition cost, registration costs, expenses on the improvements or repairs are deductible from the selling price. In addition, the acquisition price will be increased annually by 1% starting from the fifth year of holding the property and by 2% annually after a 15-year ownership period.

VALUE ADDED TAX (VAT)

VAT is generally payable on rental income, at 18%. However, rental of unfurnished properties for residential purposes are exempted from VAT.

PROPERTY TAX

Property Tax on Developed Land (contribution foncière des proprieties bâties)

This tax is levied on the following types of property: houses, factories, all buildings constructed in stone, wood, steel or brick fixed to the ground, non-cultivated lands intended for industrial or commercial use and, in general, all similar commercial or industrial installations. The property owners are liable to pay for this tax. The taxable value is the property’s rental value.

Property tax is levied at a rate of 5% for all immovable properties except factories, and factories and similar industrial establishments are taxed at 7.5%.

Property Tax on Undeveloped Land (contribution forfaitaire des propriétés non bâties )

All land situated in urban or metropolitan areas which is either undeveloped or developed with buildings not fixed permanently on the property is taxable. The tax is levied at 5% of the taxable value (which is computed as 5% of the property’s market value).

Senegal - more data and information

• Guide to buying houses and registering property sales in Senegal

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