Legal and tax incentives

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In Senegal, policy incentives aimed at encouraging investment are regularly updated. Legislation, the tax code and customs are constantly updated. Ambitious reforms of tax code, legislation and customs provide clear incentives to invest

An ambitious reform agenda

Continually enhancing Senegal as an FDI destination, a program of major reforms of the business environment has been implemented in consultation with public and private stakeholders.

As proof of the country’s commitment to reform implementation, the Presidential Investment Council (PIC) was created as a forum for strategic thinking and direct dialogue between the President of the Republic and investors to deal with all and any issues relating to the business environment and the development of investments.

Recent reforms involve land ownership, building permit formalities, labor legislation, taxes, migrating import/export procedures online.

Investor protection

Senegalese authorities, keen to attract FDI, have been proactive in finalizing FIPAs & DTRAs with partner countries interested in protecting the interest of their citizens wanting to invest in Senegal.

Foreign Investment Promotion and Protection Agreements (FIPA) provide investors with guarantees, ensure non discriminatory treatment and safeguard their interests in all circumstances

Double Taxation Relief Agreements (DTRA) guarantee investors’ tax status transparency and avoid double taxation.

Incentives for investment

The previous tax code (Law 92-40, July 9, 1992), has been amended (Law 04-12 Feb 6, 2004) to ease tax compliance, simplify procedures, encourage private investment and job creation.

A single tax payment (Contribution Globale Unique) has been implemented and corporate tax has been dropped from 35 to 25%.

The Investment Code
Tax relief, guaranties and benefits are provided to investors through the investment code. The code’s scope has been enlarged to include several strategic areas and its transparency and range of benefits make it very appealing to investors. It provides customs duties and fiscal incentives to new business and expanding ones, including customs duties exemption, suspended VAT and a reduced corporate tax.

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Free Export Company
The Free Export Enterprise statute is granted to companies exporting 80% or more of their output. Agriculture in its broadest sense and teleservices industry sectors are eligible. The main advantages are lower corporate tax (15%), payroll tax exemption, registration fees, stamp duty and business licence taxes are waived, as are also taxes on equipment purchase and raw materials.

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Public private partnerships

Senegal has modern and transparent regulations for public procurement, defined by the 2004 Act on Build-Operate-Transfer Contracts on public-private partnerships as a touchstone of the major infrastructure projects undertaken by the State of Senegal.