Benin Corporate Tax Guide 2026

Overview — Corporate Tax in Benin

Corporate tax in Benin is governed by the General Tax Code (Code Général des Impôts) and administered by the Direction Générale des Impôts (DGI). A company is tax resident if it is incorporated under Beninese law or if its place of effective management is in Benin. Resident companies are taxed on worldwide income; non-resident companies with a permanent establishment are taxed on Benin-source income only. Companies must register for tax with DGI and obtain a Taxpayer Identification Number (NIF). The tax year aligns with the calendar year. Annual returns are due by 30 April of the following year.

Standard Corporate Tax Rate — 30%

The standard CIT rate for resident companies in Benin is 30% of chargeable profits. Non-resident companies with a permanent establishment are also taxed at 30% on Benin-source income. Taxable profit is computed as gross revenue less allowable deductions including operating expenses, depreciation, interest costs (subject to thin capitalisation rules), and losses carried forward. Losses may be carried forward for up to 3 years.

Reduced Rates — Agriculture 25% & Export Industries 15%

Companies engaged in agriculture benefit from a reduced CIT rate of 25%. Export industries enjoy a reduced rate of 15% to promote international trade and foreign investment. To qualify, the company must derive at least 50% of its gross income from qualifying activities. Agricultural companies may also benefit from additional investment incentives and tax holidays under the Investment Code.

Investment Code Incentives

Benin's Investment Code (Code des Investissements) offers tax incentives for qualifying investments, including partial or total exemption from CIT for a defined period, reduced customs duties on imported equipment, and VAT exemptions. Priority sectors include manufacturing, agro-processing, tourism, renewable energy, and technology. Companies must obtain approval from the Investment Promotion Agency (API-Bénin) to qualify.

Branches of Foreign Companies

Foreign companies operating through a branch in Benin are taxed at 30% on Benin-source profits. Branch profits remitted to the head office attract a branch profit remittance tax of 10%. This effectively brings the combined rate to 37% for repatriated profits. Foreign companies may prefer to incorporate a Beninese subsidiary to access the standard dividend withholding tax regime.

Depreciation and Capital Allowances

• Buildings — 5% per annum (straight-line)
• Plant & machinery — 10–20% per annum (declining balance)
• Motor vehicles — 20% per annum (declining balance)
• Computers & office equipment — 25% per annum (declining balance)
• Intangible assets — 10–20% per annum (straight-line)

FAQs

What is the penalty for late filing of corporate tax returns?

Late filing attracts a penalty of 10% of the tax due, increasing to 40% for repeated non-compliance, plus 0.4% interest per month on overdue amounts.

Can foreign companies claim treaty relief?

Yes, as a WAEMU member, Benin applies the WAEMU directives on tax harmonisation. Double taxation treaties with France and other partners may reduce withholding tax rates on dividends, interest, and royalties.

Is there a minimum tax for loss-making companies?

Benin applies a minimum lump-sum tax (contribution des patentes) based on business activity, which is payable even by loss-making companies. This varies by business category and turnover.

Disclaimer

This guide provides general information about Beninese corporate tax for the 2026 tax year. Tax laws and rates may change. Always consult with a qualified Beninese tax advisor or the Direction Générale des Impôts for advice specific to your situation. InvestmentKit does not provide tax advice.