Income tax rate in Togo 2023 | See Sales, Personal & Coperate tax Calculator

The income tax rate in Togo! Do you want to know what Togo’s income tax rate is? Are you interested in learning how to determine taxable income from a salary in Togo? Then you’ve come to the right place.

In Togo, the Income tax rates and personal allowances are updated annually with new tax tables published for Resident and Nonresident taxpayers.

You will learn about Togo’s corporation tax rate, Togo’s income tax, and how to calculate taxable income from salary in this article.

Income Tax Rate in Togo

Residents are taxed on their whole income, whilst non-residents are only taxed on income earned in Togo.

Foreigners who have lived in Togo for at least six months and have a tax residence in the country are taxed as residents.

The net yearly taxable income is determined according to the schedule below by income bracket with progressive rates and includes land income, salaries, allowances, wages, pensions and life annuities, as well as compensation provided to some firms’ managers and shareholders:

From XOF 0 to XOF 900,0000.5%
From XOF 900,001 to XOF 4,000,0007%
From XOF 4,000,001 to XOF 6,000,00015%
From XOF 6,000,001 to XOF 10,000,00025%
From XOF 10,000,001 to XOF 15,000,00030%
Above XOF 15,000,00035%

The annual minimum tax payment is XOF 3,000 and cannot be less.

The tax is calculated by applying the 30 percent rate to the yearly net taxable income for taxpayers who obtain income from independent commercial or noncommercial, craft trade, agricultural, or financial activities.

Two phases are included in the computation for taxpayers who get income from securities:

The withholding rate for dividends from assets with variable yields is as follows:

  • 13 percent of the total amount of distributed revenue;
  • The regional council for public savings and financial markets (CREPMF) within the West African economic and monetary union distributes 3% of the amount of dividends issued by corporations registered on a securities exchange (UEMOA). The withholding is a full discharge of income tax for natural people for the income to which the withholding is applied.

The withholding tax on fixed-yield investment income is 13 percent in full discharge of income tax for the income to which the withholding is applied.


How to Calculate Taxable Income on Salary?

Before calculating your taxable salary income, it is critical to obtain all of the information needed to prepare your Income Tax Returns. You must next determine your entire taxable income, followed by the final tax refundable or payable. To compute the final tax, utilize the relevant tax rates before deducting taxes previously paid through advance tax or TCS/TDS from the tax amount payable.

Individuals can draw income from five sources under income tax regulations: salary, business or property revenue, capital gains, house property income, and income from other sources. Each individual’s income must fall into one of the aforementioned categories.

Togo corporate tax rate

All businesses and other legal organizations authorized to do business in Togo under the terms of the investment code are temporarily exempt, either fully or partially. The rate of company tax is set at 27% of the taxable earnings.

Only profits produced by businesses operating in Togo and those where taxes is assigned to Togo in accordance with an international treaty against double taxation are subject to corporation tax.

In Togo, the following are believed to be in operation:-

  • companies and other entities that are residents in Togo, that is to say whose registered office or effective place of management is located in Togo.
  • companies and other non-resident entities with a permanent establishment in Togo, subject to the provisions of international agreements on
    double taxation.

When a corporation participates in commercial activity, it is considered to be operating. This can be done within a permanent facility or as a consequence of activities that create a complete commercial cycle.

Companies and other organizations with a registered office in another country are only responsible for corporation tax in Togo on profits produced in that country via operations/activities.

We sincerely hope that you found this information on the Togo’s income tax rate to be helpful. Please do well to bookmark us for future updates.

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