The verdict in three sentences
To start solo in Senegal, the Single Global Contribution (CGU) regime replaces several taxes with a simplified flat rate, as long as your turnover stays below the threshold. Above it, you move to the actual regime, become liable for VAT (18%) and file results with the DGID. The right reflex: start under CGU, then create a company (SUARL) when volume and expenses justify it.
CGU vs actual regime
The values below are 2026 orders of magnitude; the exact CGU thresholds are set by the General Tax Code and may change.
| Criterion | CGU (flat rate) | Actual regime |
|---|---|---|
| Target | Small turnover, freelancers | Higher turnover, companies |
| Base | Flat rate by turnover | Actual profit |
| VAT | Not collected | Liable (18%) |
| Accounting | Lightened | Full |
| Filings | Simplified | Monthly/annual |
| Tax | CGU flat rate | Personal tax or 30% CIT |
The CGU is designed for simplicity: a single payment bundles the essentials. The actual regime offers more precision (deduction of real expenses) but requires real accounting.
Filing obligations and VAT
| Obligation | Detail | Who? |
|---|---|---|
| CGU declaration | Annual, flat rate | CGU freelancer |
| VAT 18% | Collect + monthly remittance | Actual-regime liable |
| Advance payments | By regime | Actual |
| NINEA | Mandatory to invoice | All |
| Bookkeeping | Income/expenses | All (lightened under CGU) |
As soon as you cross the CGU threshold, VAT liability changes your invoicing: you add 18% to your invoices and remit it to the DGID, while deducting VAT on your purchases.
When to incorporate?
| Signal | Recommended action |
|---|---|
| Turnover near CGU threshold | Anticipate actual + VAT |
| Large deductible expenses | Actual regime (SUARL) |
| Need to protect assets | Create a SUARL |
| Big clients requiring a company | SUARL / SARL |
| Several partners | SARL / SAS |
Mini case study
Aïssatou is a freelance graphic designer in Dakar. In her first year she invoices 4,800,000 FCFA and stays under CGU: simplified flat rate, no VAT to manage, lightened accounting. In year two her income climbs and her expenses (equipment, subcontracting) rise. She creates a SUARL to deduct her real expenses, move to 30% CIT and charge VAT to her business clients who recover it — a clear gain in credibility and optimization.
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FAQ
What is the CGU?
The Single Global Contribution is a flat-rate regime that replaces several taxes (including personal income tax and VAT) with a single simplified payment, reserved for small turnovers.
When do I become liable for VAT?
As soon as your turnover exceeds the CGU threshold and you switch to the actual regime. VAT in Senegal is 18%.
Must I keep accounts under CGU?
Lightened accounting (a register of income and expenses) is enough. Under the actual regime, full OHADA-compliant accounting is required.
Is the NINEA mandatory for a freelancer?
Yes, the NINEA is essential to issue compliant invoices and work with professional clients or the administration.
When is it better to incorporate?
When your deductible expenses become significant, you approach the CGU threshold, or big clients require a formal structure. The SUARL is then the logical choice.
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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.
