CORPORATION TAX

27%

THE TAX RATE FOR FOREIGN COMPANIES

All companies registered in Togo must pay a tax on their Togolese profits. Non-resident companies must also pay this tax. However, there is in fact no legal definition of the concept of tax residency.
In addition to normal rates, subsidiaries of foreign companies are also subject to a final tax on intercontinental profit transfers.

TAXATION OF CAPITAL GAINS

There is no specific tax on capital gains in Togo, capital gains realized by companies on the sale of assets or real estate being considered as taxable income (certain exemptions and reductions may apply). to apply). Residents and non-residents are subject to capital gains tax on direct or indirect transfers of real estate, gains from the transfer of shares and mining permits and licenses issued by the government. The tax rates are 7% for gains from disposal of property or property rights and share transfers and 15% for mining permits or license transfers.

TAX DEDUCTIONS AND CREDITS

In general, the expenses and costs incurred for the operation of the business are tax deductible, including rents, staff and labor costs, direct and indirect remuneration paid for work , interest paid to shareholders, technical assistance fees and research costs paid. by a Togolese company or a permanent establishment of a foreign company in Togo, royalties, management fees. Depreciation and amortization deductions are available, calculated on the basis of normal wear and tear of assets used in business activities. The deduction of technical assistance costs is limited to 20% of the taxable profit for the current financial year.
Losses incurred during a financial year are deductible up to 50% of the taxable profit of a subsequent financial year, the remaining part can be carried forward indefinitely. Loss carryback is not permitted.
Les pertes subies au cours d’un exercice sont déductibles à hauteur de 50 % du bénéfice imposable d’un exercice ultérieur, la partie restante pouvant être reportée indéfiniment. Le report en arrière des pertes n’est pas autorisé.

OTHER USEFUL RESOURCES

Consult the Doing Business website, to know the amount of taxes and compulsory contributions.

The standard rate

TAX DEDUCTIONS AND CREDITS

A deduction of a percentage of net salary is allowed to cover contributions to public health insurance, social security and certain other deductions.
Interest on loans for the acquisition of a building or for the repair of buildings in Togo is deductible during the first 10 years of the loan. Gifts, donations and subsidies are deductible (capped at 1% of taxable income).
Deductions are allowed for dependent relatives (10,000 XOF per month per dependant) and for certain expenses related to real estate.
Persons who earn industrial and commercial profits, non-commercial profits or agricultural profits can deduct the expenses incurred to earn these profits.

SPECIAL SCHEMES CONCERNING EXPATRIATES

Residents are taxed on their worldwide income, while non-residents are taxed on their Togolese source income.
Foreigners are taxed as residents if they have stayed at least six months in Togo and have a tax domicile in the country.
Residents and non-residents are subject to capital gains tax on direct or indirect transfers of real estate, gains from the transfer of shares and mining permits and licenses issued by the government. The tax rates are 7% for gains from disposal of property or property rights and share transfers and 15% for mining permits or license transfers.