Senegalese taxation rests on a few structural taxes: corporate income tax (IS), personal income tax (IR), VAT, the single global contribution (CGU) for small businesses, and the business license (patente). Understanding who pays what avoids nasty surprises and lets you budget accurately from the business plan stage. Here is a dense, figure-rich overview of indicative 2026 rates and scales.
Major business taxes at a glance
Before the detail, an overview of the levies that hit a standard company under the actual-profit regime.
| Tax / levy | Rate | Base | Who pays |
|---|---|---|---|
| Corporate income tax (IS) | 30 % | taxable profit | companies (SARL, SA, SUARL) |
| VAT | 18 % | on the net price | end customer, collected by the company |
| Business license (patente) | variable | rental value + turnover | every business |
| Withholding on dividends | 10 % | distributed dividends | partners |
| Personal income tax (BIC) | progressive scale | profit | sole proprietorship |
These figures are indicative for 2026; verify with the tax authorities or a chartered accountant, since annual finance laws regularly adjust rates and thresholds.
Corporate income tax (IS)
The IS taxes the taxable profit of capital companies. The standard rate is 30 %. A minimum lump-sum tax (IMF) applies when results are low or negative.
| IS element | 2026 value | Comment |
|---|---|---|
| Standard rate | 30 % | on taxable profit |
| Minimum lump-sum (IMF) | 0.5 % of turnover | floor, capped |
| Minimum IMF | 500,000 FCFA | indicative low threshold |
| Maximum IMF | 5,000,000 FCFA | indicative cap |
| Instalments | 2 instalments + balance | annual schedule |
The minimum lump-sum tax
Even a loss-making company owes the IMF, calculated on turnover. This is often overlooked: you never pay zero tax when you have revenue.
Personal income tax (IR) for entrepreneurs
Sole proprietorships and entrepreneurs pay IR on a progressive scale on industrial and commercial profits (BIC) or non-commercial profits (BNC).
| Annual income bracket (FCFA) | Marginal rate |
|---|---|
| 0 to 630,000 | 0 % |
| 630,001 to 1,500,000 | 20 % |
| 1,500,001 to 4,000,000 | 30 % |
| 4,000,001 to 8,000,000 | 35 % |
| 8,000,001 to 13,500,000 | 37 % |
| above 13,500,000 | 40 % |
Indicative 2026 scale, by family quotient shares; to be confirmed with the DGID.
VAT: collected, not borne
Standard VAT is 18 %. The company collects it on its sales and deducts what it pays on its purchases: it only remits the difference.
| Operation | VAT | Cash effect |
|---|---|---|
| Sale net 1,000,000 | +180,000 collected | owed to the State |
| Purchase net 400,000 | -72,000 deductible | recoverable |
| Net VAT to remit | 108,000 | paid monthly |
Some operations are exempt (exports, basic necessities). Mishandling VAT creates painful cash-flow gaps.
Business license and local contributions
The patente is due from anyone carrying out an activity. It combines a fixed duty (based on activity and turnover) and a proportional duty on the rental value of the premises.
| License component | Base | Note |
|---|---|---|
| Fixed duty | turnover + activity type | scale by class |
| Proportional duty | professional rental value | legal minimum applies |
| Start-up exemption | sometimes year 1 | depending on scheme |
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The Single Global Contribution (CGU)
For small businesses below a turnover threshold, the CGU replaces IS/IR, VAT, the patente and a few others with a single simplified levy.
| CGU criterion | Indicative value | Effect |
|---|---|---|
| Services turnover cap | 50,000,000 FCFA | eligibility |
| Goods turnover cap | 100,000,000 FCFA | eligibility |
| Nature | synthetic tax | replaces several taxes |
| Target | micro-businesses, traders | simplification |
Worked example: a services SARL
A digital services SARL, annual turnover 60,000,000 FCFA, deductible expenses 42,000,000 FCFA.
- Taxable profit: 60,000,000 - 42,000,000 = 18,000,000 FCFA
- IS at 30 %: 18,000,000 x 0.30 = 5,400,000 FCFA
- IMF check: 0.5 % x 60,000,000 = 300,000 FCFA, i.e. the 500,000 FCFA minimum; since the actual IS (5,400,000) is higher, that is what applies.
- On VAT, the company collected and deducted throughout the year, separately from the IS.
Result: about 5,400,000 FCFA of IS, excluding the patente, social charges and VAT. Illustrative figures.
Honest advice and disclaimer
This article gives indicative 2026 orders of magnitude. Rates, thresholds and scales change with each finance law. Before any decision, have your situation validated by a licensed chartered accountant or the DGID services. A poorly documented legal optimisation can cost dearly in reassessment.
FAQ
What is the corporate income tax rate in Senegal?
The standard IS rate is 30 % of taxable profit, with a minimum lump-sum tax if results are low.
Does a loss-making company still pay tax?
Yes, via the minimum lump-sum tax (IMF) calculated on turnover, generally 0.5 %, with a floor.
What is the CGU and who can benefit from it?
The Single Global Contribution is a synthetic tax for small businesses below certain turnover thresholds; it replaces IS/IR, VAT and the patente.
Is VAT a cost for the company?
In principle no: it is collected on sales and deducted on purchases. The company only remits the difference.
Do you pay the business license in the first year?
Depending on the scheme, some start-up exemptions may apply; verify with the tax authorities.
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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.
