Tax laws Togo
Togo's taxation system comprises various taxes aimed at generating revenue for national development. The Togolese Revenue Office (Office Togolais des Recettes - OTR) oversees tax administration in the country.
Key Components of Togo's Tax System:
Direct Taxes:
- Corporate Income Tax: Companies are subject to a standard tax rate of 28%. Additionally, there is a 3% payroll tax on gross salaries. citeturn0search0
- Individual Income Tax: Individuals are taxed on a progressive scale, with rates ranging from 1% to 20%. Non-resident individuals are taxed at a flat rate of 20% on their income sourced in Togo.
Indirect Taxes:
- Value Added Tax (VAT): VAT is levied at a standard rate of 18% on goods and services. Businesses must prepare and submit VAT returns monthly. citeturn0search5
Capital Gains Tax:
- Capital gains are treated as taxable income. 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.
Property Taxes:
- Taxes are applied to both built and unbuilt properties. Revenue from these taxes is equally divided: 50% to municipalities and prefectures, and 50% split between the central government and OTR to cover operational costs.
Social Security Contributions:
- Employers contribute 17.5% of an employee's salary, while employees contribute 4%.
Recent Developments:
- In recent months, the Togolese tax administration has revised its approach to taxing foreign-sourced services, particularly concerning software and intangible goods imported from abroad. These are now treated as goods subject to customs duties, leading to significant changes in tax practices.
For comprehensive and current information, it's advisable to consult the Togolese Revenue Office or a tax professional, as tax laws and regulations are subject to change.
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