A new Tax Code came into force in Senegal following the adoption of Law No.2012-31 of 31 December 2012, published in the Law Gazette on 31 December 2012, which came into force on 1 January 2013.

One of the most significant changes introduced by the new code is a  higher corporation tax rate, which increased from 25% to 30% of taxable profit.

This increase breaks away from the previous tax policy promoting tax rate reduction.  Indeed, former law No.2004-12 of 6 February 2004 decreased the corporation tax rate from 35% to 33% and Law No.2006-17 of 30 June 2006 lowered the tax from 33% to 25%.

The new amendment is heavily criticised by some politicians, such as Aïssata Tall Sall, Aïde Mbodj and Modou Diagne Fada, who are afraid that it will discourage investment in the country.

However, the Government argues that most Member States of the West African Economic and Monetary Union (WAEMU) have the same corporation tax rate (for example: Mali: 35%; Niger: 30%; etc.) so that the new code merely aligns Senegal’s position with that of other countries.

Moreover, according to the Government, the tax bases have also been amended in order to comply with WAEMU regulations and make the corporation tax regime more attractive to investors.