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Personal Taxation in Senegal


Non-residents are taxed on their Senegalese-sourced income. Married couples are generally taxed separately but the head of the family may opt for joint taxation. 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 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. 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.

Value Added Tax

All economic activities are within the scope of VAT, including activities of independent professionals. The main exemptions relate to health care, education, banking, insurance and reinsurance, farming and transportation. Banking transactions are subject to the tax on banking operations.

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

Capital Gains Tax

Capital gains tax is levied at a rate of 15% on the net gains realised 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.

Administration and Compliance

The tax year is the calendar year that ends on 31 December. Returns must be filed by 31 January or 31 March of the following year depending on the type of income. Payment of tax must be made upon receipt of a tax notice.

Penalties apply for late filing, late payment, failure to file and filing incorrect returns, with the amount depending on the nature of the tax and/or violation.




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