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Benin

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About

Benin

Capital
Official languages
Population 
Currency

ISO 4217

Porto-Novo

French

11,841,811 (as of July 2020)

West African CFA franc

XOF

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Economy

Benin has seen a steady improvement in its economy over the past few years. According to the World Bank, the country's GDP grew by 5.2% in 2019, and is projected to grow by 5.3% in 2020. This growth is largely driven by the services sector, which accounts for nearly 60% of the country's GDP. The agricultural sector is also a major contributor to the economy, accounting for around 25% of GDP. Inflation in Benin has been relatively low, averaging around 2.5% in 2019. The country's unemployment rate is also low, at around 4.2%. Benin has also seen an increase in foreign direct investment, with inflows reaching $1.2 billion in 2019. This has helped to boost the country's economic growth and development. Overall, Benin's economy is on a positive trajectory, and the country is well-positioned to continue its growth in the coming years.

Taxation

Benin has a progressive tax system, where the tax rates increase as the taxable income increases. The tax system in Benin is based on the territoriality principle, where residents are taxed on their worldwide income, while non-residents are only taxed on their income earned in Benin.


Corporate taxation in Benin:


- Corporate income tax: The standard corporate income tax rate is 30%, but small and medium-sized enterprises may benefit from a reduced rate of 25% on their first XOF 50 million of taxable income. 

- Withholding tax: Non-resident companies are subject to withholding tax on their income from Benin, including dividends, interest, and royalties, at a rate of 16.5%.


Personal taxation in Benin:


- Personal income tax: The personal income tax in Benin is progressive, with a top rate of 35%. Taxpayers are divided into four categories based on their income level, and the tax rates vary for each category. 

- Social security contributions: Both employees and employers are required to contribute to the National Social Security Fund (CNSS) at rates of 3% and 6.8%, respectively.


Process and calendar for tax payments:


- Tax year: The tax year in Benin is the calendar year.

- Tax returns: Corporate taxpayers must file their tax returns by April 30th of the following year, while individuals must file their returns by March 31st of the following year.

- Tax payments: Corporate and individual taxpayers are required to make advance payments of their estimated tax liability in quarterly installments throughout the year. Final tax payments are due by May 31st for corporate taxpayers and by April 30th for individuals.

- Penalties: Late payments of taxes are subject to interest and penalties.


Note: The above information is for general guidance only and should not be relied upon as tax advice. It is recommended to consult a tax professional for specific advice tailored to your situation.

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