Tax Focus

Benin

By:
Jean-Louis Dattie,
Charles-Alexandre Koffi
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The 2022 fiscal year began in Benin with the entry into force of Law No.2021-15 of December 20 2021, on the General Tax Code of the Republic of Benin.
Contents
From now, the following are deductible:
  • Interest paid by a company to its partners or to companies belonging to the same group, including financial institutions, within the limit of those calculated at the key rate of the Central Bank of West African States increased by three (3) points and on condition that the share capital has been fully paid up. 
  • The total amount of deductible net interest due annually on all debts contracted by a company is limited to 30% of the result before tax, interest, depreciation, and provisions. The fraction of non-deductible interests can immediately be carried forward and deducted for the following fiscal years, within the limit of five (5) years, under certain conditions. 
  •  Interest due on loans is deductible if the commitments to which it relates are not overdue, within the meaning of Instruction No. 026-11-2016 of November 15, 2016, of the Central Bank of West African States. Regarding Value Added Tax, e-commerce operations are now subject to the said tax. In terms of the Financial Activities Tax, a reform of the tax has been undertaken by broadening its base to include interest paid to foreign banks and insurance contracts (formerly subject to the Tax on Insurance Contracts).