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Tax rates in Togo

Tax Rates

Consumption Taxes

Nature of the Tax
Value Added Tax (VAT) - Taxe sur la Valeur Ajoutée (Local name)
Tax Rate
18% (standard rate)
Reduced Tax Rate
Financial, insurance, medical and transport services are exempt from VAT. Additional categories of exempt supplies include agriculture, fishing and livestock, and supplies relating to the importation, production and sale of products and equipment used in the fight against the COVID-19 pandemic.
A 10% reduced rate applies on accommodation, catering and other services provided by hotels, restaurants and related registered organisations, as well as on services performed by licensed tour operators.
Other Consumption Taxes
Excise duties are levied on tobacco (50%), coffee and tea (10%), soft drinks (5%, excluding water), wheat flour (1%), oils and fats (1%), perfumery and cosmetic products (15%), beer (18%) and other spirits (50%).
A tax on fuel consumption is levied at rates ranging from XOF 0 to XOF 60 per litre, depending on the type of fuel.

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Corporate Taxes

Company Tax
27%
Tax Rate For Foreign Companies
All companies registered in Togo must pay tax on Togo-source; whereas non-resident companies are subject to tax on Togo-source income. However, there is no actual legal definition of residence.
Non-resident companies without a branch or permanent establishment in Togo are subject to a final 20% withholding tax on Togo-source income.
Capital Gains Taxation
There is no specific tax on capital gains in Togo, as capital gains realised by corporations on the sale of assets or real estate are treated as taxable income (some exemptions and reliefs may apply). Both residents and non-residents are subject to capital gains tax on direct or indirect transfers of real property, gains from the transfer of share and mining permits, and licenses issued by the government. The tax rates are 7% for gains from the transfer of property or property rights and share transfers and 15% for mining permits or license transfers.
Main Allowable Deductions and Tax Credits
In general, expenses and costs incurred for the purpose of operating the business are tax-deductible, including rents, personnel and labour costs, direct and indirect remuneration paid in respect of work, interest paid to shareholders, technical assistance fees and costs of research paid by a Togolese company or a permanent establishment of a foreign company in Togo, royalties, management fees. Depreciation and amortisation deductions are available, calculated on the basis of the normal wear and tear of the assets used in business activities.
Technical assistance fees deduction is limited to 20% of the taxable profit for the current fiscal year.
Losses incurred during a financial year are deductible up to 50% of the taxable profit of a subsequent year, the remaining part can be carried forward indefinitely. The carryback of losses is not allowed.
Other Corporate Taxes
Other taxes for companies include: a 3% payroll tax on gross salaries, social security contributions (17.5% of the employee's salary is paid by the employer,  4% is paid by the employee), a 15% property tax on the rental value of the real estate, stamp duties, a registration duty of 2% per contribution of capital, a XOF 35,000 registration duty on the transfer of immovable property.
Other Domestic Resources
Consult Doing Business Website, to obtain a summary of the taxes and mandatory contributions.

Country Comparison For Corporate Taxation

  Togo Sub-Saharan Africa United States Germany
Number of Payments of Taxes per Year 49.0 36.6 10.6 9.0
Time Taken For Administrative Formalities (Hours) 159.0 284.8 175.0 218.0
Total Share of Taxes (% of Profit) 48.2 47.3 36.6 48.8

Source: Doing Business, Latest available data.

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Individual Taxes

Tax Rate

Personal income tax Progressive rates from 0% to 35%
From XOF 0 to XOF 900,000 0.5%
From XOF 900,001 to XOF 4,000,000 7%
From XOF 4,000,001 to XOF 6,000,000 15%
From XOF 6,000,001 to XOF 10,000,000 25%
From XOF 10,000,001 to XOF 15,000,000 30%
Above XOF 15,000,000 35%
Minimum tax XOF 3,000
Industrial and commercial profits, non-commercial profits, and agricultural profits 30%
Allowable Deductions and Tax Credits
A deduction of a percentage of net wages is allowed to cover contributions for public health insurance, social security and certain other deductions.
Interest on loans for the acquisition of a building or for building repairs in Togo is deductible for the first 10 years of the loan. Gifts, donations and subsidies are deductible (capped at 1% of taxable income).
Deductions are allowable for dependent relatives (XOF 10,000 per month per dependent) and for certain expenses relating to real property.
Individuals earning industrial and commercial profits, non-commercial profits, or agricultural profits may deduct expenses incurred in earning such profits.
Special Expatriate Tax Regime
Residents are taxed on their worldwide income, while non-residents are taxed on their Togo-source income.
Foreigners are taxed as residents if they have spent at least six months in Togo and have a tax domicile in the country.
Both residents and non-residents are subject to capital gains tax on direct or indirect transfers of real property, gains from the transfer of share and mining permits, and licenses issued by the government. The tax rates are 7% for gains from the transfer of property or property rights and share transfers and 15% for mining permits or license transfers.

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Double Taxation Treaties

Countries With Whom a Double Taxation Treaty Have Been Signed
Double taxation agreement between Togo and France
Withholding Taxes
Dividends: 0 (paid by a resident subsidiary to its resident parent company)/7% (if the payer company is a listed company within the WAEMU)/13%; Interests:  0% (long-term government bonds)/3% (medium-term government bonds)/6% (standard rate for companies)/13% (individuals); Royalties: 5% (resident with tax number)/10% (resident without tax number)/20% (non-resident).

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Latest Update: November 2022

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