Togo: Government to start granting tax reliefs to firms in difficulty, starting January 1

Public finance

Tuesday, 18 December 2018 16:16

Togo: Government to start granting tax reliefs to firms in difficulty, starting January 1

(Togo First) - Starting January 1, 2019, Togo’s government will provide a set of exemptions to firms undergoing restructuring and facing some difficulties.

In effect, tax reliefs will be granted for a maximum of five years, with the approval of the ministry of finances. This measure will benefit firms that operate in strategic sectors which are promising, in terms of employment and growth, as well as those planning substantial investments. Last, there are firms in difficulty to sustain competition.

The new derogation system has several tax advantages for companies in difficulty. These include exemptions on profits, provision reversal, and capital gains from sales, among others. Also, wages, built and unbuilt properties, financial transactions and turnovers could be exempted.

The reliefs also concern registration fees and stamps purchased to increase capital in cash or by incorporating debts, profits, reserves or provisions of any sort. Are also exonerated mergers of firms and the transfer of shares and fixed assets.

It should be highlighted that the ministry’s approval can be limited to one or more, or all tax reliefs projected under the new derogation regime.

Fiacre E. Kakpo

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