Tax In Benin

A Contractor’s Guide to Taxes :

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:

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 Calculator:

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 :

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:

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!

When Do You Need to Lodge Your Tax Return?:
30 April (of the year following the income tax year)
Tax Filing Deadline :
30 April (of the year following the income tax year)
Can you file it online? :
Yes, https://eservices.impots.bj/login?returnUrl=%2Fhome
Currency:
CFA Franc (XOF)
Tax-free Threshold in:
XOF50,000
Grossed Income:
0 – 300,000
Tax Rate:
0%
Grossed Income:
>300,000 – 2,000,000
Tax Rate:
20%
Grossed Income:
>2,000,000 – 3,500,000
Tax Rate:
30%
Grossed Income:
>3,500,000 – 5,500,000
Tax Rate:
40%
Grossed Income:
>5,500,000
Tax Rate:
45%
How long does it take to set up:
5-6 days
How much does it cost:
XOF17,300
Is it easy? :
Starting a Business Rank: 56/190 (Source: World Bank)
How to File Taxes in:

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(link is external).

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:

[IMAGE]

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(link is external), by clicking on ‘Guide D-Utilisation E-Services’ under the ‘E-Services’ tab.

Notes:

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

Does the 183 day rule apply in:

Yes

When do you become a tax resident in:

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.
Am I taxed on my global income in:

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

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.

    Prishen Pillay Shell International Trading & Shipping / Global DBA Operations Lead
  • I utilized PEO services with Contractor Taxation & have found the services invaluable. We had to quickly establish a presence in China to meet a perceived large market, knowing how difficult it could be setting up a complete operation there. CT helped us immensely to navigate these waters and establish this beachhead without a lot of the normal distractions associated w/opening a full operation. This allowed us to focus on our client’s expectations and keep us moving forward in the market.

    John Zimmer Charles River Development / Vice-President, Finance