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In 2017, Benin had introduced three separate taxes on gold bullions (5%), precious stones (10%) and marble (5%). The tax annex to the Finance Act, 2020 (Act No. 46 of 2019) repealed these different taxes and combined them into one, designated as the tax on specific products, which lists all excise duties. This tax concerns “all imports or transfers of specific products carried out for valuable consideration or free of charge”. The tax base is defined, on importation, as the “customs value, plus duties and taxes collected on entry” excluding VAT and, on importation, as the “ex-factory selling price” excluding VAT. A single rate of 10% now applies to mining products: gold bullions, precious stones and marble. 80% of the revenue is allocated to the Treasury and 20% to the promotion of sport. This tax on specific products is now located in sections 274 and following of the new general tax code (Act No. 15 of 2021).

In Benin, the tax annex to the Finance Act, 2020 has made several important changes to the calculation of the corporate tax base (Act No. 33 of 2020). Firstly, head office expenses, technical, accounting and financial assistance expenses, study expenses and other similar expenses, which were deductible up to a limit of 20% of general expenses, are now deductible up to a limit of 5% of taxable profit. In addition, the practice of deferred depreciation is abolished, which means that deferred depreciation will now only be considered as ordinary losses. In return, however, the permitted loss carry-forward period has been extended from 3 to 5 years. These new measures are detailed in the application modalities of the Finance Act, 2021 (Circular n°024/MEF/CAB/SGM/DGI/DLC/SLRI of January 8, 2021).

Value added tax (VAT) was introduced in Burkina Faso on January 1st, 1993 (Act No. 4 of 1992). It initially had two rates: a full rate of 15% and a reduced rate of 10%. However, by 1994, the reduced rate had been abandoned in favour of a single rate (Act No. 27 of 1993). Initially set at 15%, this single rate was then increased to 18% in 1996 (Act No. 26 of 1996).
In 2020, Burkina Faso’s Finance Amendment Act reintroduced a reduced rate of 10% (Act No. 31 of 2020). This rate applies only to accommodation and catering services provided by hotels, restaurants and similar approved organizations. In the WAEMU, this measure is reminiscent of Senegal, which also reintroduced a reduced VAT rate of 10% in 2013 for accommodation and catering services provided by approved tourist accommodation establishments. However, this reduced rate has been restricted since 2015 to services provided by approved tourist accommodation establishments.

Would you like to learn about the taxation of the mining sector in Africa and learn how to model mineral resource rent sharing? In partnership with the French Ministry of Europe and Foreign Affairs (MEAE), the IHEDD is opening a new session of its online training on modeling and mining taxation in Africa.
This distance training will take place from February 7 to March 15, 2022. It will require approximately 25 hours of work on your part. In addition, you will benefit from a personalized follow-up from the various trainers. Apply before January 31, 2022. The price is 450 euros. A MEAE scholarship may be granted upon selection of applications. Only 35 places are available.

Updated tax data for 2020 are now available for Cameroon, the Republic of Congo and the Democratic Republic of Congo.
In Cameroon, deferred depreciation must now be carried forward before 10 years. In the Republic of Congo, the Finance Act, 2020 (Act No. 42 of 2019) and the Finance Amendment Act, 2020 (Act No. 23 of 2020) make two important changes in 2020. Firstly, the corporate income tax rate is reduced from 30% to 28%. Secondly, the tax on negative externalities of mining and hydrocarbon extraction activities, introduced in 2012, is repealed. In the Democratic Republic of Congo, taxation has not changed (Finance Act No. 19 of 2019).