TAX FOCUS

Senegal

By:
Mansour Gaye,
Talla N’diaye
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The 2022 fiscal year began in Senegal with the entry into force of Law No. 2021-42 of December 20 2021, on the Finance Act for the year 2022.
Contents

Developed to consolidate the economy's recovery, the finance law contains 24 articles. Among the changes to the Tax Code, we can note: 

  • The extension of the benefit of the status of the straightforward export enterprise until December 31, 2024. 

As a reminder, the status of the specific export enterprise is granted to industrial, agricultural or teleservices companies established in the Senegalese customs territory and which intend the totality of their production of goods or services for export. Those companies are exempt from dividend tax on dividends paid, from all payroll taxes payable by the employer, registration and stamp duties, patents' contribution, and property taxes. They are subjected to the collection of a flat tax of 15%.

  •   The supply of pasteurized milk is now exempted from VAT. However, this operation is eligible for deduction. 
  •  Textiles acquired by a taxable person subject to a real taxation system and intended for the manufacture of clothing in Senegal are now exempt from tax on textile products 
  • Raw oils intended to be refined in Senegal are now exempt from the specific tax on food fats
  •  In addition to this law, Order No. 004130 of March 4, 2022, has established the list of organizations that can benefit from tax-deductible donations. This list of 11 organizations includes, among others, the "Servir le Senegal" foundation, the "SOS Children's Village" association, and the National Foundation for Social Action of Senegal (FNASS).