Togo is pursuing its policy of reducing tax burdens, with the introduction of major innovations in the new finance law and technical adjustments in favour of investors and economic operators.

In this dynamic, the government maintains in accordance with the ordinance of August 26, 2020 the reduction of registration and registration fees from 5% to 1.5%, and grants the same advantages to the registration of buildings.

The registration fee for a real estate exchange increases for this purpose from 0.6% against 6% in 2020, and that applicable to parcel fragmentations from 1% to 0.3%.

The tax burden on young entrepreneurs has also been reduced, particularly with regard to the Single Business Tax (TPU). The floor of this tax subject to a declarative regime which was at 30,000F is now reduced to 20,000F.

The tax relief also includes exemption from free hand and mortgage write-off duties.

Companies will also have the possibility to make an annual provisional declaration of their results and regularize it within three months.

The technical adjustments relate to the licence, the filing of corporate tax returns, the flat-rate minimum of taxation and the deduction from rent.

The license is calculated on the turnover of the tax year, and the rate of the withholding on rent which was at 12.5% in the 2020 finance law is now set at 8.75%.

All these special measures are aimed at promoting investment and strengthening tax control measures. They complement other measures taken by the President of the Republic by ordinance in August 2020, to significantly reduce the impacts of the Coronavirus pandemic on the economic and social life of the country.