Benin: Transfer pricing - Requirements and documentation in Benin

1. The companies subject to transfer pricing are those that have dependent relationships or are under the control of another company according to the General Tax Code (CGI) 2025 article 45.  

Are considered to have dependency relationships, the companies: 

• one of which directly or indirectly holds most of the share capital of the other.  
• which are both placed, in the previously defined conditions, under the control of the same company or person.  

Other companies subject to transfer pricing declaration. The declaration of transfer pricing is also required for entities that carry out transactions with companies that have a privileged tax regime even if they do not necessarily have dependent relationships. Privileged tax regime: According to the CGI 2025, a tax regime is privileged if the income taxes borne are nil or less than half of those established generally in Benin. 

2. Corporate Tax Treatment  

The majority or minority gap resulting from the analysis of transfer prices must be reintegrated into the results for the purpose of calculating corporate tax to comply with the arm's length principle. 

3. Reporting Obligations 

• Annual Transfer Pricing Declaration: Companies with an annual turnover or gross assets ≥ one billion (1,000,000,000) CFA francs are subject to this. Deadline: April 30 of each year (Article 470 CGI 2025). 
• Country-by-Country Reporting (Article 472 CGI 2025): Criteria for being subject to it: 
  • A consolidated annual turnover excluding taxes ≥ 492,000,000,000 CFA francs. 
  • Companies owned by an enterprise established in a state that does not require this declaration and that can be compelled to do so if domiciled in Benin.  

4. Penalty (Article 496 paragraph 6 of CGI 2025) 

Failure to file declarations within the prescribed deadlines is subject to a fine of ten million (10,000,000) CFA francs. 

5. Preparation of documentation in case of accounting verification by the administration: (Article 543 of the CGI 2025 and Order Year 2020 N°0121/MEF/DC/SGM/DGI/DLC/016SGG20) 

The documentation is established by the company that: 

• has an annual turnover excluding taxes or gross assets ≥ one billion (1,000,000,000) CFA francs. 

• holds at the end of the financial year, more than half of the capital of a company in Benin or outside of Benin. 

• has more than half of its capital at the end of the financial year held, directly or indirectly, by a company that has achieved a turnover of one billion CFA francs. 

Content of the documentation: This documentation justifies the pricing policy applied and contains information related to the affiliation group of the company being audited as well as details of the transactions carried out with related companies.