Benin: Recent Developments in Benin's Tax Legislation

Corporate Tax

Since 2024, capital gains recorded during the revaluation of the balance sheet of public companies operating in sectors deemed priorities by the government may benefit from an exemption.

The amount of corporate tax in Benin cannot be less than a minimum collection equal to 1.5% of collectible income.

Advance Payment of Income Tax

The new measures in force in Benin since 2024 provide that the amount of advance payments on income tax that could not be fully deducted on 31 December is imputed in the payment of income tax, subsequent advance payments and income tax arrears, if any.

Remuneration paid in return for artistic and cultural services is exempt from the withholding tax on remuneration due to non-resident service providers in Benin.

Under the Motor Vehicle Tax (TVM)

Vehicles registered in the name of the diplomatic corps, the consular corps, international organizations within the UN system, interstate organizations and international foundations, vehicles registered in the name of international organizations and international non-governmental organizations that have signed a headquarters agreement with the Republic of Benin are exempt from the TVM.

Under the Tax on Financial and Insurance Activities (TAFA)

As of 2024, remuneration received on financial transactions carried out in the Republic of Benin, in particular commissions and interest received on credits, loans, advances, commitments by signature and bank transfers of money excluding rapid transfers are subject to the TAFA.

Are exempt from the tax on financial activities and insurance: life and health insurance contracts; and rapid money transfer operations, subject to the tax on added theft.

Under Registration Fees on Public Contracts

These are subject to a 1% duty, purchase orders and public contracts whose price must be paid by the State. Local authorities, public institutions, state-owned companies and other similar persons. This rate is reduced to 0.5% for contracts with a price of at least Twenty (20) Billion CFA Francs.

Under the representation of taxpayers

Since 2024, the tax representative of foreign companies has been required to comply with the accounting and filing obligations for financial statements, by indicating the name and address of the accountant(s) or experts responsible for keeping their accounts.

The designated representative is required to meet all reporting and payment obligations for taxes, duties and fees owed by the represented company.