Togo: Firms registered at Centre de Gestion Agréé to benefit from tax incentives
Thursday, 25 January 2018 08:46 
(Togo First) - Still in line with its strategy to improve business climate, Togo’s government has announced tax incentives for companies registered at the Centre de Gestion Agréé (CGA).
Indeed, under its 2018 finance bill, article 1478, it provides tax incentives, not only to businesses registered under the single tax business regime but also to those registered under the real regime.
In effect, individual entrepreneurs or legal entities, registered at the CGA and subjected to the single business tax benefit from a 30% reduction on this tax, from the first to the third year of their activity, and 15% in the fourth and fifth years. This tax will be levied only starting from the sixth year of activity, the finance bill states.
In the same framework, Togo’s government granted entities subjected to the single business tax but that prefer real regime, a tax reduction which equals CGA registration fees and account management fees for five years, with a limit of CFA300,000 per year. However, charges taken into account under the tax reduction measure will no more be considered as deductible charges.
Besides, entrepreneurs with annual turnover ranging between thirty and sixty million CFA will benefit from the government’s kindness as well. Indeed, the latter plans to cut by 50% business tax from year 1 to year 3 of operation; by 30% income tax over the same period; by 20% alternative minimum tax during the second and third year of activity; by 30% business tax in the fourth and fifth year.
Moreover, the government, still under its 2018 finance bill, will reduce by 15% income tax during fourth and fifth years of activity; by 10% alternative minimum tax to be paid in the fourth and fifth years. Here also, the government will implement measures falling under the common law system, starting from the sixth year.
So, it appears that the government has walked half the way. Now let us hope that youth, and populations generally, will take hold of this opportunity and walk the other half.
