Senegal Highlights:
- A sponsorship solution is the most efficient and effective way to deploy local and foreign employees in Senegal.
- 1WB offers a sponsorship solution ensuring full compliance with country’s regulations.
- The whole deployment process for foreigners takes about 3 weeks whereas for locals within 1 day.
- Handling payroll processing, immigration and taxes compliantly, swiftly and cost efficient.
- Personal income tax is rates:
| Annual Income (XOF) | Tax 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% |
| 8,000,001 - 13,500,000 | 37% |
| 13,500,001 and above | 40% |
- Minimum personal income tax (MPIT) - Any employee is liable to MPIT and the amount is fixed as follows:
| Annual IncomE (XOF) | MPIT (xof) |
|---|---|
| 0 - 599,999 | 900 |
| 600,000 - 999,999 | 3,600 |
| 1,000,000 - 1,999,999 | 4,800 |
| 2,000,000 - 6,999,999 | 12,000 |
| 7,000,000 - 11,999,999 | 18,000 |
| 12,000,000 and above | 36,000 |
- Branches and companies are liable for corporation tax at the rate of 30%.
-
Payroll taxes
Pay-as-you-earn (PAYE) All compensation (including salary, cash allowances and benefits in kind) paid to employees is generally taxable. For the calculation of the personal income tax to be withheld by the employer, the tax administration provides a tax table determined on a monthly basis, so that no calculation is necessary.
Employer tax Employers are subject to a 3% tax based on the total gross salaries paid to employees. - Social security contributions - Social security contributions are borne exclusively by the employer (up to 7.5%).
- Retirement contributions - are payable both by the employer and the employees:
| regime | Contribution % from Employer | Contribution % from Employee | Max Monthly basis of calculation XOF |
|---|---|---|---|
| Genaral | 8.4% | 5.6% | 360,000 |
| Executive | 3.6% | 2.4% | 1,080,000 |
- Work permit-1WB can sponsor work permits for foreign employees and the processing time is about 1 month.