Withholding tax reduced for property owners

Economic governance

Thursday, 28 January 2021 17:29

Withholding tax reduced for property owners

(Togo First) - In Togo, property owners will pay less tax, notably due to the reduction of the withholding tax on rent. This tax, paid by tenants of residential or commercial buildings, used to be 12.5% of the rent but it has been reduced to 8.5%. This corresponds to a 4% reduction in just 12 months.

The withholding tax used to cause disputes between landlords and their tenants. Often, the former would refuse any levy on rent or a rent increase to cover the fee and as a result, it would befall tenants to pay more.

Reducing this tax aligns with the Togolese authorities' ambition to reduce the burden on taxpayers.

The withholding tax is paid to the Togolese Revenue Office (OTR) latest by the 15th of every month (after rent is paid).

Séna Akoda

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