Senegal

Type of profile
Country
Overview

Recent reform steps

Senegal has taken a number of reform measures to enhance domestic revenue mobilisation. For instance, the ceiling for the minimum corporate lump sum tax (l’impôt minimum forfaitaire des societés, IMF) has been lowered from XOF 20 million to XOF 5 million; stamp duty rates have also been reduced. Tax scrutiny has been strengthened to improve compliance, with better targeting of likely non-compliant taxpayers. Improved monitoring of tax compliance already resulted in a fall in non-compliance for tax deducted at source on pay from 20% in 2012 to 7.8% in 2016 (Large Enterprises Unit, CGE). Furthermore, enforcement officers (who
will carry out the same work as that of bailiffs) have been recruited. Closer monitoring of tax revenue has been ensured by means of regular meetings with the accounting network of the General Directorate of Taxes and Government Property (DGID).

On the legislative front, Senegal took steps in 2013 to modernise the tax system with the introduction of a new taxation code, which seeks to: (1) rationalise tax expenditure, with the establishment of transparent tax incentive measures; (2) simplify tax rules and regulations; and (3) lower tax rates and increase tax fairness.

Measures have also been taken to reform the organisational structure of tax administration services, establishing a clear separation between functional and operational departments.

Progress achieved & good practices

The reforms undertaken, as well as the favourable macroeconomic trends of the last three years, have contributed to an increase in revenues: the General Directorate of Taxes and Government Property (DGID) has recorded a sharp rise in budgetary revenues collected, which showed an average increase of 12.7% between 2014 and 2016.


Policy coherence for development


Outlook & strategic priorities

In 2017, Senegal plans to reform its tax legislation on transfer pricing and interest deductibility to bring it in line with rules on Base Erosion and Profit Shifting (BEPS). Senegal also plans to sign the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting, particularly with regard to improper use of tax treaties and artificial avoidance of permanent establishment status.

With respect to tax administration, Senegal plans to take the following measures:

  • Creation of a specialised team to deal with transfer pricing.
  • Renewal of its assistance programme as part of the ‘Inspectors without Borders’ initiative.
  • Exchange information under the Convention on Mutual Administrative Assistance in Tax Matters (MAAC), which came into force in Senegal in December 2016.
  • Organisational reform of the DGID, with a focus on improving taxpayer segmentation.
  • Implementation of a project to create a tax database.
  • Extension of electronic tax filings and payment to all CGE (Large Enterprises Unit) taxpayers.
  • Creation of a taxpayer call and support centre delivering near-free services.
  • Update of the tax base and collection management software.
  • Interconnection between the different financial administrations: Tax – Customs – Treasury.

Resources

There are no resources available.

DRM Project Data as Recipient

all
2015
2016
2017
Donor
year Year
No. project
amount Commitment
disbursement Disbursement
France
year all
3 projects
amount 835 292.43 USD
disbursement 558 835.50 USD
Expertise technique dans le domaine de la gouvernance financière . Assistance technique dans le domaine fiscal
year 2015
1 project
amount 430 390.00 USD
disbursement 430 390.00 USD
FERC-Fin Expert Technique International
year 2016
1 project
amount 276 456.93 USD
disbursement 0.00 USD
I.5.a. Government & Civil Society-general
year 2017
1 project
amount 128 445.50 USD
disbursement 128 445.50 USD
Germany
year all
5 projects
amount 1 069 111.32 USD
disbursement 609 297.51 USD
Assistance Advisory for results.based development and budget planning
year 2015
1 project
amount 0.00 USD
disbursement 180 510.00 USD
Advisory Assistance for results.based development and budget planning
year 2015
1 project
amount 1 064 890.00 USD
disbursement 0.00 USD
Assistance Advisory for results-based development and budget planning
year 2016
1 project
amount 4 221.32 USD
disbursement 20 182.70 USD
Advisory Assistance for results-based development and budget planning
year 2016
1 project
amount 0.00 USD
disbursement 295 407.80 USD
Advisory Assistance for results-based development and budget planning
year 2017
1 project
amount 0.00 USD
disbursement 113 197.01 USD
Norway
year all
1 project
amount 13 382.66 USD
disbursement 61 036.30 USD
Media and tax/illicit financial flow project
year 2016
1 project
amount 13 382.66 USD
disbursement 61 036.30 USD
Japan
year all
1 project
amount 14 576.84 USD
disbursement 14 576.80 USD
TC Aggregated Activities
year 2016
1 project
amount 14 576.84 USD
disbursement 14 576.80 USD
European Commission
year all
1 project
amount 0.00 USD
disbursement 853.88 USD
African Tax Forum 2014
year 2017
1 project
amount 0.00 USD
disbursement 853.88 USD
Totals
year all
11 projects
amount 1 932 363.25 USD
disbursement 1 244 599.99 USD
Donor
year Year
No. project
amount Commitment
disbursement Disbursement
France
year 2015
1 project
amount 430 390.00 USD
disbursement 430 390.00 USD
Expertise technique dans le domaine de la gouvernance financière . Assistance technique dans le domaine fiscal
year 2015
1 project
amount 430 390.00 USD
disbursement 430 390.00 USD
Germany
year 2015
2 projects
amount 1 064 890.00 USD
disbursement 180 510.00 USD
Assistance Advisory for results.based development and budget planning
year 2015
1 project
amount 0.00 USD
disbursement 180 510.00 USD
Advisory Assistance for results.based development and budget planning
year 2015
1 project
amount 1 064 890.00 USD
disbursement 0.00 USD
Totals
year 2015
3 projects
amount 1 495 280.00 USD
disbursement 610 900.00 USD
Donor
year Year
No. project
amount Commitment
disbursement Disbursement
France
year 2016
1 project
amount 276 456.93 USD
disbursement 0.00 USD
FERC-Fin Expert Technique International
year 2016
1 project
amount 276 456.93 USD
disbursement 0.00 USD
Germany
year 2016
2 projects
amount 4 221.32 USD
disbursement 315 590.50 USD
Assistance Advisory for results-based development and budget planning
year 2016
1 project
amount 4 221.32 USD
disbursement 20 182.70 USD
Advisory Assistance for results-based development and budget planning
year 2016
1 project
amount 0.00 USD
disbursement 295 407.80 USD
Norway
year 2016
1 project
amount 13 382.66 USD
disbursement 61 036.30 USD
Media and tax/illicit financial flow project
year 2016
1 project
amount 13 382.66 USD
disbursement 61 036.30 USD
Japan
year 2016
1 project
amount 14 576.84 USD
disbursement 14 576.80 USD
TC Aggregated Activities
year 2016
1 project
amount 14 576.84 USD
disbursement 14 576.80 USD
Totals
year 2016
5 projects
amount 308 637.75 USD
disbursement 391 203.60 USD
Donor
year Year
No. project
amount Commitment
disbursement Disbursement
European Commission
year 2017
1 project
amount 0.00 USD
disbursement 853.88 USD
African Tax Forum 2014
year 2017
1 project
amount 0.00 USD
disbursement 853.88 USD
France
year 2017
1 project
amount 128 445.50 USD
disbursement 128 445.50 USD
I.5.a. Government & Civil Society-general
year 2017
1 project
amount 128 445.50 USD
disbursement 128 445.50 USD
Germany
year 2017
1 project
amount 0.00 USD
disbursement 113 197.01 USD
Advisory Assistance for results-based development and budget planning
year 2017
1 project
amount 0.00 USD
disbursement 113 197.01 USD
Totals
year 2017
3 projects
amount 128 445.50 USD
disbursement 242 496.39 USD