Benin
Benin Income Tax Residents Residents are subject to tax on worldwide income. Income Tax Rates for Resident Individuals: Taxable Income as exceeds
But does not exceed
Rate
(XOF)
(XOF)
%
0
300 000
0%
300 000
2 000 000
20%
2 000 000
3 500 000
30%
3 500 000
5 500 000
40%
5 500 000
45%
Notes: 1. Basis – An individual, whether Beninese or a foreign national, whose tax domicile is in Benin, is generally subject to personal income tax (PIT) on worldwide income. Foreign source income that already has been taxed may be exempt if there is a tax treaty. Individuals not domiciled in Benin are subject to tax only on Benin-source income. 2. Residence – Domicile is based on habitual residence, evidenced by a permanent home, principal place of residence or centre of economic interests. 3. Rates – Progressive annual rates range from 20% (XOF300 000-XOF2 million) to 45% (above XOF5.5 million). The tax on salaries is deducted at source at progressive annual rates from 10% (first XOF50 001-XOF130 000) to 35% (above XOF530 000).
24
Guide to Fiscal Information
4. Taxable income – Income is taxed under five schedules: industrial and commercial profits; non-commercial profits; employment income; income from moveable capital (investments); and property income. Taxable income from employment is widely interpreted and includes benefits in kind, assessed at actual cost, except for accommodation at 15% of basis salary and for house staff at 15% of basis salary. 5. Deductions and allowances – The first XOF50 000 per month of employment income is exempt from tax. Income tax and tax on salaries are reduced according to the number of dependent children. 6. Filing status – Joint returns apply i.e.tax is assessed on the taxpayer's household (generally the husband’s return). Children that have income separate and distinct from that of the parents are assessed separately. 7. Relief from double taxation is available through tax treaties to which Benin is signatory. Benin has four treaties; namely, with France, Norway, Kuwait and the WAEMU (covering eight other countries and addressing income taxes, Value Added Tax (VAT) and other duties).
Non-Residents Individuals not domiciled in Benin are subject to tax on Benin-source income only. Employment Income Taxable employment income includes salaries and wages, bonuses, overtime, and all kinds of benefits and allowances. Salaries, wages and remuneration accessories are taxable in Benin under some conditions: • When the beneficiary is domiciled in Benin eventhough the gainful employment is exercised out of Benin and the employer is domiciled or established outside of Benin. • When the beneficiary is domiciled outside of Benin to the condition that the gainful employment is exercised in Benin or that the employer is domiciled or established in Benin.
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