Umbrella Company in Benin

Independent contracting in Benin isn’t always straightforward. You’ve got immigration issues, tax difficulties, and mountains of complex admin work. Even worse, missteps can cost you serious money, or even land you in legal trouble.

Before you consider taking a contract in Benin, you should be aware of what you’re getting into – and how you can make it simpler

Difficulties of Contracting in Benin

Generally, you need to have an employer sponsor in order to secure the appropriate work permit and work visa for Benin.

If you’re working independently, it can be difficult to find clients willing to sponsor you. Moreover, even if your client can do this, you’ll need a new sponsor each time you decide to take on a new contract. Of course, every new sponsor will mean more paperwork.

Also, are you familiar with the intricacies of the tax system in Benin, as well as your own country’s laws on overseas earnings? If so, good on you!

However, if you’re like the rest of us, figuring out (much less reducing) your tax liability in Benin and your home country can seem like full-time work in itself.

How Umbrella Companies Work

Most freelance workers aren’t superheroes who successfully tackle these issues all on their own. There are companies who specialise in helping workers make the most out of their contracts.

They’re called Umbrella Companies (or, contractor management companies).

Basically, an Umbrella Company acts as your full-time employer, even though you maintain your independence as a contractor. They collect and filter payments from your clients, filtering out the necessary social security and fees. You send them your timesheets, and they send you payments.

Because they act as your “employer,’ they can sponsor you and provide a single work permit for multiple contracts in Benin. Even better, most are experts in Beninese and expat tax law, meaning they’ll also help you optimise your earnings in Benin.

Although the Umbrella Company is technically your “employer,” you’re essentially freeing yourself to work even more independently. You still dictate your contracts, your hours, your schedule. The Umbrella Company simply filters out the time-consuming admin and immigration issues, allowing you to focus on your new contract.

Why Use an Umbrella Company in Benin

Most people want to do their work, earn their money and enjoy their spare time without taking on loads of admin in a new country. That is why an umbrella company can help.

When you’re working through an Umbrella Company, you’ll essentially be outsourcing the admin and tax issues to specialists.

While the umbrella company will charge a fee, you’ll likely end up saving more money in the long run: you’ll be able to focus on your work, expertly reduce your tax liability, and comply with all laws and regulations in Benin (which means avoiding fees, fines, or even worse penalties).

How We Can Help You

There’s a huge variety of Umbrella Companies with different specialities and advantages in Benin. How do you find the right one for your circumstances?

We work closely with Umbrella Companies all throughout Benin and match contractors with the right company for them. If you’ve already secured a contract in Benin, we can help you find your best match (for free). Or, we can simply give you feedback on your situation (for free).

A Contractor's Guide to Taxes in Benin

One of the most consistently challenging aspects of contracting in Benin is complying with the country’s tax system. As well as paying tax in Benin, you might also still be eligible to pay some tax in your home country, and understanding the legislation behind this can be a challenge.

How do I calculate my taxable income in Benin

If you’re working in Benin under a permanent contract, many employers will handle your tax under the PAYE (pay-as-you-earn) system. This means that they calculate and process your taxes in Benin for you and then send you a net wage. Your income tax, public health insurance, social security and other deductions will all be covered by this payment. This is the easiest way to handle your income tax in Benin, but contractors may not be offered this service because of their short stay with each employer.

Anybody who can’t pay their tax in Benin through PAYE is left with the prospect doing everything themselves.

Do you know much about Beninese Tax Law? Does Benin have a tax treaty with your home country? You will need to find out or find someone who can help! Income tax in Benin can range from 0 to 35 percent, and you need to be sure you are placed in the correct tax brackets.

Tax Filing in Benin


When Do You Need to Lodge Your Tax Return?30 April (of the year following the income tax year)
Tax Filing Deadline30 April (of the year following the income tax year)
Can you file it online?Yes, https://eservices.impots.bj/login?returnUrl=%2Fhome

How to File Taxes in Benin

Taxes can be filed online via the Benin tax authority’s website. It is recommended that you consult a tax specialist and/or translator as all online forms are written in French.

Step 1: Register

Register for the Benin tax authority’s e-Services by sending a letter to the Direction Générale des Impôts with the following information:

  • Full name
  • Username
  • Email address
  • Phone number

An email will be sent to you with an activation link, username and temporary password. Follow the link and enter your username and password. You will be required to create a new password.

Step 2: Access e-Services

Access online services by signing in here.

Step 3: File Taxes

To file taxes, click on ‘Déclarations’.

In the search box on the right, select a tax account, then click on the ‘déposer’ (submit) button on the line corresponding to the account.

The page below will be displayed:

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Fill in the fields and click the ‘sauvegarder’ (save) button.

Click on ‘en cours’, then ‘soumettre la déclaration’ (submit the declaration).

A comprehensive guide to filing taxes online and other government e-services can be found on the Benin tax authority website, here, by clicking on ‘Guide D-Utilisation E-Services’ under the ‘E-Services’ tab.

Tax Figures in Benin

CurrencyCFA Franc (XOF)
Tax-free Threshold in BeninXOF50,000
Income Tax Rates
Grossed Income Tax Rate (%)
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

Deductions: The first XOF50,000 per month of employment income is deducted from taxable income.

Tax Residency in Benin

When do you become a tax resident in Benin

You become a tax resident in Benin when:

  • You are domiciled in Benin (i.e. Benin is your permanent home, principal place of residence and/or centre of economic interests); or
  • You stay in Benin for 183 days or more during the income tax year.

Does the 183 day rule apply in Benin

Yes

Am I taxed on my global income in Benin

Residents are taxed on their global income. Non-residents are taxed on their Benin-source income only.

Can you set up your own Limited Company in Benin

How long does it take to set up 5-6 days
How much does it costXOF17,300
Is it easy? Starting a Business Rank: 56/190 (Source: World Bank)

Tax Calculator in Benin

If you are a contractor and want a calculation on your tax and net retention in Benin, we can supply it to you free of charge.

Using an Umbrella Company for Income Tax in Benin

Contractors in Benin are faced with masses of paperwork and numerous wasted hours filing a tax return unless they find an alternative option. A Beninese umbrella company can act as your employer during your stay in the country whilst still allowing you the freedom of a contractor. The only difference is that you submit your timesheets to them; they’ll calculate and pay your taxes as you earn, and then you receive a net wage (as well as documentation for your records).

The companies are experts in Beninese taxation, and they’ll ensure that you keep the largest proportion of your earnings whilst complying with local laws. They can deal with any issues with the Beninese tax office or tax department directly including processing your tax refund if you are eligible.

How We Can Help You with Tax in Benin

We work with numerous umbrella companies in Benin, many of whom are experts in tax and immigration laws. If you have any questions about tax in Benin, we’ll get the answers from them directly so you can rest assured you’ll be getting accurate information. We have comprehensive knowledge of the different services they provide, and can help you find the right company to handle your income tax. We help oil and gas workers, software developers, IT project managers, testers, business analysts and telecommunications contractors get tax efficient payments and sponsorship for their Beninese work permit.

Our advice is 100 percent free, and comes with no obligations. You will be paying taxes in Benin but without the overhead of directly dealing with the Beninese tax authorities. Get in touch with us today for some reliable advice on tax in Benin!

A Contractor's Guide to Work Permits in Benin

Immigration is one of the primary concerns for any contractor hoping to start working in Benin. Permanent employees will find it easy to get their Beninese work permit because they’ll receive “sponsorship” for their entire stay from their prospective employer.

The Beninese work permit, known more commonly as the Benin Visa, is dependent on this sponsorship because it confirms that you’ll be earning money during your stay in the country. Contracting in Benin is more difficult because the work permit is tied to one employer, so you have to change it to suit each new contract. Thankfully, umbrella companies provide a convenient and effective solution to this issue.

 

How Can Umbrella Companies Help You Get a Work Permit in Benin ?

As your permanent employer, umbrella companies are able to sponsor you for your Beninese work permit provided they’re on the register of approved sponsors. Many different companies offer this service, because it makes contracting in Benin infinitely simpler and saves you the hassle of continuous paperwork. Instead of changing your work permit every time you get a new contract, you can just work how you ordinarily would under the same permit. They protect you from the bureaucratic “rain” of legal compliance with the Beninese immigration authorities. They can even deal with the Beninese Embassy directly. 

Through their service you may be able to use a business visa to get started quickly and then transition to a work visa in Benin. It depends on your specific visa requirements. Be aware you may have to register for a residence permit in Benin.

Client comment

"Great advice and excellent service on contracting and immigration solutions in the UK. I would highly recommend Tim and the team to assist you with accurate, clear and concise contracting advice in the UK or any other country for that matter."

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Shell International Trading & Shipping