• Amounts paid in addition to agreed severance with respect to the end of an employment relationship resulting from a restructuring plan of the relevant company.
• Capital gains realized on equity held by mutual funds approved by the Finance Minister.
• Insurance premiums paid by the employer for coverage of supplemental retirement and health or death insurance, provided that they do not exceed 10% of the gross remuneration of the employee. This limit applies only to retirement and death insurance premiums taken as a whole.
A nonresident individual is taxable on income derived from services performed in Senegal.
Self-employment and business income. Self-employment activities are divided into commercial activities, agricultural activities and professional activities. Taxable income is determined according to specific rules applicable to each category of revenue. The revenues realized in different categories of revenues are aggregated and are subject to general income tax (see Rates).
Individuals are taxed on commercial income if they derive profits from activities in industry, commerce or skilled trades. Taxable commercial income consists of the net profit derived from all business activities carried on by the taxpayer, computed on an accrual basis.
Individuals are taxed on professional income from professional services, from non-commercial activities and from other occupations and business activities not subject to special tax. Taxable professional income is the difference between income received for, and expenses incurred in, the performance of a qualifying activity. The cash basis of accounting is used.
Agricultural income includes profits realized by farmers, stockbreeders, fishermen and forestry operators. Taxable agricultural income and capital gains derived by agricultural businesses are determined based on the same methodology as taxable commercial income.
Investment income. Investment income, which includes dividends, interest pertaining to bonds and debentures and directors’ fees, is subject to withholding taxes at rates that vary based on the specific type of income. Directors’ fees are taxed only if the payer company is established in Senegal.
Gross investment income (except dividends) is added to other taxable income, and the proportional tax paid constitutes a tax credit deductible from general income tax liability.
The rate of withholding tax is 10% for dividends, 13% for interest derived from bonds of less than five years, and 16% for directors’ fees. The withholding tax on dividends is a final tax for individuals.
Certain types of investment income are exempt from taxation, including income from negotiable securities issued by the state or certain Senegalese banks. Interest derived from long-term bonds (five or more years) is subject to a final withholding tax at a rate of 6%.
Relief for losses. Losses may not be deducted from income from other categories, but may be carried forward for three years to offset income in the same category.
B. Inheritance and gift taxes
The worldwide net assets of a Senegalese resident are subject to inheritance and gift tax. Nonresidents are subject to inheritance and gift tax only on assets located in Senegal.
Gifts and inheritances are subject to tax at progressive rates, depending on the value of the assets transferred and the relationship between the donor or deceased and the recipients. The tax rate is 2% for the spouse and direct lineal ascendants and descendants and 5% for others. Certain deductions are also granted.
Under Senegalese succession law, parents must leave two-thirds of their estates to their direct lineal descendants.
C. Social security
Contributions. Individuals’ social security contributions are withheld monthly by employers and are computed on the basis of gross remuneration paid, including fringe benefits and bonuses. The following contributions are required.
Description
Totalization agreement. To prevent double social security contributions and to assure benefit coverage, Senegal has entered into a totalization agreement with France, which applies for a maximum period of three years.
• Four copies of the contract
• Four signed originals copies of the contract
• A copy of the employee’s passport
• A curriculum vitae
• A medical certificate of less than three months issued by a local doctor
• A criminal record of less than three months.
The approval of the General Directorate of Labor is usually granted within two to three weeks (in practice, it may take longer). The approved local employment contract serves as a work permit for the employee.
H. Residence permits and residence cards
A residence permit is required for foreign nationals who stay more than three months in Senegal, except for nationals of ECOWAS Member States who are not required to obtain a residence permit. The residence permit allows its holder to transfer his permanent residence to Senegal and to enter Senegal without any visa.
The application for a residence permit is made to the Foreigners Police (Police des Étrangers). Once the contract is approved under the conditions detailed in section G, an expatriate worker can apply for a residence permit by providing to the Foreigners Police a copy of the approved contract and a receipt of payment of a repatriation guarantee (caution de rapatriement), the amount of which varies according to the nationality of the employee. A foreign national can be self-employed if he or she obtains a residence permit. There is no minimum amount of capital required to be self-employed.
The foreign national who has applied for a residence permit is issued a receipt that serves as a temporary residence permit until the final document is issued. This receipt is valid for six months and can be renewed until the final document is issued.
The application for a residence permit includes the following documents:
• A signed application addressed to the Minister of the Interior
• A copy of the first five pages of the passport (including the page containing the last arrival visa)
• An extract from the criminal record of the country of origin dated less than three months
• A birth certificate dated less than three months
• A certificate of Senegalese residence (issued by the district chief)
• A medical certificate dated less than three months
• Three passport photos
• Tax stamps of XOF15,000
• Receipt of payment of the required repatriation guarantee
• A copy of the approved employment contract
• Copy of the tax identification number (NINEA), extract from the trade register and articles of association, if applicable, for self-employed workers
Any document written in a language other than French must be translated into French by a sworn translator in Senegal.
When leaving Senegal, the national must notify the competent authority of his or her departure and return his or her residence permit to the authority that issued it. In return, he or she will be able to recover the deposit of the repatriation that he or she has paid from the Caisse des Dépôt et Consignation (CDC).
I. Family and personal considerations
Family members. Family members of expatriates are required to have an entry visa for Senegal. For details on how to obtain a residence permit, see Section H above. In addition, spouses who wish to work are advised to apply to the labor authorities for approval of their local employment contract (see Section G).
Marital property regime. Couples who marry in Senegal can choose between the regime of separation of property, the dotal regime and the community regime of participation (régime de participation aux meubles et acquêts).
Forced heirship. The Family Code of Senegal provides for the mechanism of the reserved portion of the heritage (réserve héréditaire), according to which a part of the succession must necessarily go to certain heirs called reservataires. According to the provisions of Article 565 of the Family Code of Senegal, the following are reservataires with respect to the succession:
• The legitimate father and mother
• The natural children
• The legitimate brothers and sisters of the deceased
The Family Code of Senegal provides for a system of inheritance under Muslim law by virtue of which certain so-called legitimate heirs (légitimaires) are entitled to certain proportions of the deceased’s heritage.
Driver’s permits. An individual who is at least 18 years of and meets the requirements set by law may apply for a driver’s license. The license is issued by the Directorate of Road Transport (Direction des Transport Routiers), after passing written and practical tests at a driving school.
The following items are required for a driver’s license application:
• Medical certificate issued by the Regional Chief Medical Officer and dated no more than four months
• Certificate of residence issued in Senegal
• Certificate of blood type
• Legalized copy of the passport
• Stamp duty of XOF10,000 for the right to take the exam
• Stamp duty of XOF10,000 for the right of issuance of the driving license
• XOF10,000 for enrollment fees
Holders of digitalized driver’s licenses issued in Burkina Faso, France, Korea (South) and Morocco can apply for a conversion of their driver’s license in Senegal. Also, diplomats from all countries can benefit from the conversion of their license.
The following items should be provided for the conversion:
• Driver’s license obtained from the home country (and certified by accredited embassy in Senegal)