The average Senegalese SME pays 38% of its profit in tax and social charges. Understanding CIT, VAT, PIT and CGU from day one gains you 5 to 8 margin points. Here is the complete 2026 tax landscape, DGID calendar included.
TL;DR
- Corporate income tax (CIT): 30% on fiscal profit
- VAT: 18% standard, 10% catering and tourism, 0% export
- PIT: progressive 0 to 40% across brackets
- CGU: simplified regime for SMEs < XOF 100M services revenue
- CME: 0.5% of revenue, XOF 500,000 annual floor
The Senegalese tax system in 2026
The General Tax Code (CGI) splits direct taxes (CIT, PIT, CME) and indirect ones (VAT, registration). DGID (General Directorate of Taxes and Domains) collects everything through the eTax portal since 2022. Corporate tax sits under amended law 2018-10.
The 5 must-know taxes
- CIT — Corporate Income Tax: 30% on annual fiscal profit.
- VAT — Value Added Tax: 18% standard, monthly filing.
- PIT — Personal Income Tax: progressive, wages and dividends.
- CME — Minimum Economic Contribution: 0.5% revenue, XOF 500K floor.
- CGU — Global Single Contribution: optional simplified regime.
Corporate income tax (CIT) in detail
CIT hits fiscal profit: accounting profit + add-backs - deductions. Flat 30% since 2013. Provisional quarterly instalments (February 15, May 15, August 15, November 15).
Main deductible charges
| Category | Deductible | Conditions |
|---|---|---|
| Wages and social charges | 100% | Declared at CNSS and IPRES |
| Professional rent | 100% | Lease registered with DGID |
| Supplier fees | 100% | Compliant invoice + 5% withholding for non-residents |
| Amortization | Per schedule | Linear or declining method |
| Entertainment | 50% | Named receipts |
| Client gifts | Cap XOF 30K/beneficiary | Named list |
| Doubtful provisions | Conditional | Receivables > 1 year, recovery action |
CIT example: services SME
Services SME with XOF 50M revenue, XOF 35M expenses (wages 20M, rent 3M, suppliers 8M, misc 4M). Accounting profit 15M. Add-backs 1M (gifts over cap), deductions 0.5M (training credit). Fiscal profit 15.5M. CIT = 15.5M × 30% = XOF 4.65M.
VAT: the threshold trap
VAT applies once revenue exceeds XOF 50M for trade or XOF 25M for services. Below those, exemption but no input VAT recovery.
Rates and sectors 2026
| Sector | VAT rate | Note |
|---|---|---|
| Standard (services, general trade) | 18% | Normal regime |
| Catering and hospitality | 10% | Reduced rate since 2024 |
| Essential medicines | 0% | Social exemption |
| Exports | 0% | Refundable VAT credit |
| Unprocessed agricultural products | 0% | Exemption |
VAT filing calendar
Mandatory monthly filing before the 15th of the following month. Late filing: 25% penalty + 0.5%/month interest. Filing happens on DGID eTax.
PIT and manager tax
PIT hits wages, dividends and manager income. 2026 progressive brackets (annual):
| Bracket XOF | PIT rate |
|---|---|
| 0 - 630,000 | 0% |
| 630,001 - 1,500,000 | 20% |
| 1,500,001 - 4,000,000 | 30% |
| 4,000,001 - 8,000,000 | 35% |
| > 8,000,000 | 40% |
Dividends additionally suffer a 10% IRC (Capital Income Tax) withheld at source.
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Salary vs dividend optimization
For a SARL manager drawing XOF 12M/year, two options:
- Salary 12M: PIT ~3.5M + social charges ~1.5M = 5M outflows.
- Salary 3M + dividends 9M: PIT ~0.5M + IRC 0.9M + upstream CIT 2.7M = 4.1M.
The salary-dividend mix stays favourable but needs sufficient fiscal profit. Best arbitrated yearly with your accountant.
CGU and CME: alternative regimes
CGU replaces CIT + VAT + patent with a flat tax for SMEs < XOF 100M (services) or 50M (trade). Pro: simplicity. Con: no VAT recovery.
CME (Minimum Economic Contribution) applies to all companies, even loss-making. Calculation: 0.5% of pre-tax revenue, floor XOF 500,000, cap XOF 10M. Creditable against CIT.
Annual DGID tax calendar
- February 15: 1st CIT instalment + January monthly VAT filing.
- April 30: annual CIT filing (tax bundle) + balance sheet.
- May 15: 2nd CIT instalment.
- August 15: 3rd CIT instalment.
- November 15: 4th CIT instalment.
- December 31: CME true-up, declaration of fees paid.
Every other month, VAT filing before the 15th. Filing discipline avoids 90% of reassessments.
FAQ
Q: Is a chartered accountant mandatory in Senegal?
A: Mandatory for SA and SARL above XOF 250M revenue. Recommended above XOF 50M to avoid filing errors. Average fee XOF 150 to 400,000/year for SMEs.
Q: What if you skip VAT filing?
A: 25% penalty on amount due + 0.5%/month interest + deeper audit risk. After 3 months, DGID can freeze your NINEA.
Q: Is CGU really worth it?
A: Yes for service SMEs with low deductible purchases. No if you have heavy VAT input (lose recovery) or export (lose VAT credit).
Q: Are website and software expenses deductible?
A: Yes, expense or amortization by amount. Site below XOF 1M: immediate expense. Above XOF 1M: 3-year amortization. SaaS subscriptions: monthly expense, 100% deductible.
Conclusion
Senegalese tax is readable but unforgiving on deadlines. A disciplined calendar, an accountant from XOF 50M revenue, and the right CIT/CGU pick deliver 5 margin points. Kolonell connects clients to a network of accredited Senegalese accountants. Free quote or WhatsApp +221 77 596 93 33.
Mohamed Bah
Fondateur, Kolonell
Passionate about digital and entrepreneurship in Africa, Mohamed has been helping Sénégalese businesses with their digital transformation since 2020. Founder of Kolonell, he believes every SME deserves a professional and accessible online présence.
