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02.04.2025

Senegal: Overview of the main tax measures of the 2025 Finance Act

Author
El Hadji Sidy Diop
Managing Partner & CEO
Legal Adviser and Chartered Tax Expert
Senegal
View Profile

Adopted in line with the forecasts set out in the Initial Finance Act (PLFI), the Finance Act for 2025 introduces several major tax reforms aimed at modernizing tax administration and enhancing transparency.

Administrative reforms and tax obligations

  • Abolition of certain commissions: Deemed inefficient, the special registration duty commission and the joint conciliation commission have been abolished, simplifying tax procedures.
  • End of COVID-19 tax measures: The exceptional measures adopted during the health crisis have been abolished, as they are no longer relevant.
  • Mandatory electronic invoicing: The adoption of electronic invoices will enable real-time VAT tracking and strengthen the fight against fraud. In the event of non-compliance, a fine of 25% of the invoiced VAT is provided for, capped at 5 million XOF per invoice.
  • Tax clearance for certain companies prior to payment to foreign service providers: Construction, mining, oil and utilities companies will be required to obtain a tax clearance less than one month old before paying a foreign company based in Senegal. Failure to do so will result in non-deductibility of payments.
  • Dematerialization of refund and claim requests: Taxpayers will have to submit their claims electronically, facilitating administrative processing.
  • Shorter deadline for VAT credit refunds: Refunds will be made within 15 days of approval of the claim and will only be made via a tax-free certificate.
  • New taxation procedures following a tax census: The tax authorities will now be able to issue a tax assessment by means of a roll instead of an ex officio tax assessment following a tax census.


Changes to taxes and levies

  • Withholding tax on medical and paramedical services: Private healthcare establishments must apply a 10% withholding tax on payments made to non-salaried healthcare professionals.
  • Increase in specific tobacco tax: The rate of this tax is raised from 65% to 70% to boost tax revenues and discourage tobacco consumption.
  • VAT withholding tax maintained for certain players: VAT withholding is maintained for public establishments and public service concessionaires (water, electricity, telephony).
  • Reduced tax penalties for SMEs: The fine for non-declaration of beneficial owners is reduced from 10 million to 1 million XOF for SMEs not covered by the Direction des Grandes Entreprises (DGE).
  • Extension of the status of Export Processing Enterprises (EFE): This regime has been extended until December 31, 2025, pending the introduction of a new Investment Code.
     

These reforms mark a major shift in Senegal's tax policy and will have a significant impact on businesses and taxpayers alike.

 

If you wish to discuss these topics, please contact:

Face Africa Tax & Legal

Author
El Hadji Sidy Diop
Managing Partner & CEO
Legal Adviser and Chartered Tax Expert
Senegal
View Profile
Author
Rajo Rakotosolofo
Tax Manager
Senegal
View Profile
Article published in WTS Africa Quarterly Newsletter #2/2025
Recent tax developments in Africa
View publication
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