Togo Investment Income Guide 2026

Overview — Investment Income Taxation

The Togolese tax system taxes investment income primarily through withholding taxes deducted at source. The withholding tax is generally a final tax for resident individuals, meaning no further tax reporting is required and the income is not included in the progressive IRPP computation. For corporate investors, withheld tax is creditable against CIT. For non-residents, withholding tax rates may be reduced under applicable double tax treaties. The Direction Générale des Impôts administers all withholding tax. The investment landscape in Togo includes government securities (Bons du Trésor, Obligations du Trésor), bank deposits, listed shares on the BRVM, and regional mutual funds, each with distinct tax treatments.

Dividends — 10% WHT (Final for Residents)

Dividends paid by Togolese-resident companies are subject to withholding tax at 10% for resident shareholders. This is a final tax for resident individuals, meaning the dividend income is not included in IRPP and no further tax is due. For corporate shareholders, the 10% WHT is a creditable advance payment against their CIT liability. For non-residents, the dividend WHT rate is generally 10% (may be reduced under applicable WAEMU directives or DTTs). Within the WAEMU region, dividends paid to residents of other member states benefit from a reduced rate of 7.5% under the WAEMU tax directive. The paying company is responsible for withholding and remitting the tax to DGI within 15 days of the dividend payment.

Interest Income — 10% WHT

Interest income is subject to a uniform 10% withholding tax rate across most instruments:

• Government bonds & Treasury bills (BAT, OTA) — 10% WHT deducted at source by the issuing institution
• Bank deposit interest — 10% final WHT for individuals
• Corporate bonds — 10% WHT
• Current account interest — 10% WHT
• Savings accounts — 10% WHT

The 10% WHT is a final tax for resident individuals, meaning interest income is not included in the IRPP computation. For non-residents, the 10% rate is also generally final, though treaty relief may reduce it further. Interest paid between WAEMU resident companies may benefit from a reduced rate under the regional directive. The 10% rate is relatively favourable compared to the top IRPP marginal rate of 40%.

Capital Gains — Securities Exempt

As noted in the capital gains guide, Togo does not impose CGT on gains from the disposal of securities, shares, bonds, or other financial instruments by individual investors. This exemption applies to all BRVM-listed shares, unlisted shares, government securities, and corporate bonds. The exemption is designed to encourage investment in the West African regional capital market. Mutual fund (OPCVM) distributions and redemption gains are also generally exempt from tax in the hands of individual investors. For corporate investors holding securities as trading assets, gains may be treated as ordinary business income and subject to CIT.

Regional Investment — BRVM & OPCVM

The Bourse Régionale des Valeurs Mobilières (BRVM) is the regional stock exchange serving all WAEMU member states, including Togo. The BRVM is based in Abidjan, Côte d'Ivoire, with a trading floor in Lomé. Key tax features of regional investments include:

• Dividends from BRVM-listed companies — 10% WHT (final for individuals)
• Capital gains on BRVM-listed shares — exempt
• Distributions from OPCVM (mutual funds) — generally exempt for individuals
• Interest on regional government bonds — 10% WHT

Togolese investors can invest in the BRVM through local licensed intermediaries (Sociétés de Gestion et d'Intermédiation — SGI). Regional tax harmonisation ensures consistent treatment across WAEMU countries.

FAQs

Do I need to report dividend income on my annual tax return?

If you are a resident individual, the 10% WHT on dividends is final, so no further reporting is needed. For corporate shareholders, dividends must be reported and the WHT credited against CIT.

Are foreign dividends taxable in Togo?

Yes, tax residents are taxed on worldwide investment income. Foreign dividends should be declared in the annual tax return. Foreign tax credits may be available under applicable DTTs.

Is interest on savings accounts tax-free in Togo?

No, interest on savings accounts is subject to 10% WHT. However, certain specialised savings products (such as the Livret d'Épargne) may have specific exemptions or reduced rates.

Disclaimer

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