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- Basic Facts
- Statutory Labor Requirements
- Employee Income Tax In Brazil
- Employee Social Security In Brazil
- Deductible Expenses In Brazil
- Immigration In Brazil
- Value Added Tax (VAT) In Brazil
- Withholding Tax In Brazil
- Terminating Employee In Brazil
- Statutory Employee Benefits In Brazil
- Payroll In Brazil
- Ease Of Doing Business In Brazil
- Business Opportunities In Brazil Section
- Why Use Global Expansion To Hire Your Employees In Brazil
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BASIC COUNTRY FACTS
Republic of Senegal
Dakar
- French
15.85 million
West African CFA franc
.sn
+221
West African CFA franc
STATUTORY LABOR REQUIREMENTS
Probation Period
- Probationary periods of three months for executives and one month for non-executives are permitted and may be renewed.
Annual Leave
- In general, employees are entitled to 24 days of paid annual leave.
Public Holidays
- New Year's Day (1st January)
- Senegal Independence Day (4th April)
- Easter Monday (13th April)
- Labor Day (1st May)
- Ascension Day (21st May)
- Eid al-Fitr
- Whit Monday (1st June)
- Eid al-Adha
- Assumption of Mary (15th August)
- Ashura
- Grand Magal of Touba
- Prophet's Birthday
- All Saints' Day (2nd November)
- Christmas Day (25th December)
Maternity Leave
- In general, female employees are entitled to 14 weeks of paid maternity leave, eight of which must be taken after the birth.
Paternity Leave
- There is no statutory paternity leave
Sick Leave
- Employees are generally entitled to a minimum of five paid sick days per year.
Work Hours
- In general, Senegal’s work week is 40 hours.
Overtime
- Overtime work can be carried out up to 10 hours per week and up to 100 hours per year, in order to maintain or increase production, provided that this has been authorized by the labor inspection.
- In general, overtime is to be remunerated by an increase of 10% for the performance of in between 41 and 48 hours per week, and by an increase of 35% for hours exceeding 48 per week.
Notice Period
- Employees can terminate a contract with 15 days’ written notice, although technicians must provide two months’ notice.
- Employers may terminate employees for just cause with written notice as follows:
-
- Executives and similar: three months’ notice
- Monthly paid white-collar workers, blue-collar workers and permanent hourly, daily, or weekly paid staff: eight days to one month, depending on length of service.
Severance
- Workers are generally eligible for severance pay for each year of service of 25 to 40% of their average wages over the past 12 months.
- The percentage is based on length of service and the collective bargaining agreement.
13th Month Salary in Brazil
- No
- There is not statutory requirement to pay the 13th or the 14th month salary.
- Employees receive annual leave not exceeding 15 days per month.
- However, there are several articles in the code that refer to seniority and performance bonus.
- This points to the possibility of those bonuses being customary.
INCOME TAX
- Senegalese tax residents are taxable on their worldwide income.
- In any cases, salary income is taxable in Senegal, provided that the work is performed in Senegal or the employer is established there.
- The personal income tax (PIT) corresponds to a progressive duty to be applied to the taxable income of individuals, including net salaries.
- By splitting one's income into shares (personal allowances), the taxpayer benefits from the progressive rates for each share.
- To calculate the total tax payable, the tax corresponding to each share is thereafter multiplied by the number of shares.
- The following scale shows the different rates applicable to income.
|
Annual income (XOF) |
Rate |
|
|
From |
To |
|
|
0 |
630,000 |
0 |
|
630,001 |
1,500,000 |
20 |
|
1,500,001 |
4,000,000 |
30 |
|
4,000,001 |
8,000,000 |
35 |
|
8,000,001 |
13,500,000 |
37 |
|
13,500,001 |
And over |
40 |
- Any employee is liable to MPIT, and the amount is fixed as follows:
|
Annual income (XOF) |
MPIT (XOF) |
|
|
From |
To |
|
|
0 |
599,999 |
900 |
|
600,000 |
999,999 |
3,600 |
|
1,000,000 |
1,999,999 |
4,800 |
|
2,000,000 |
6,999,999 |
12,000 |
|
7,000,000 |
11,999,999 |
18,000 |
|
12,000,000 |
And over |
36,000 |
DEDUCTIBLE EXPENSES
- Different abatements and allowable deductions apply to each category of income.
- A lump sum deduction of 30% of earnings is available when determining the taxable base for employment income tax purposes, capped at XOF900 000.
IMMIGRATION
- There are several different kinds of visas that will allow foreign nationals to enter Senegal.
- Individuals who are planning to work in Senegal will need a work permit to do so.
- The most common types of work permits in Senegal are:
- Local-hire work permits
- Assignment work permits
- The type of permit your employees will need depends on several variables, including their qualifications and the nature and duration of the work they will be doing for your company.
- The Senegalese government also issues business visas, which may be relevant for some members of your team.
- Business visas allow foreign nationals to enter Senegal for short term business activities, such as:
-
- Negotiating business contracts
- Attending conferences, business meetings, or training seminars
- Developing professional contacts for business purposes
- However, long-term employees will need a work permit.
|
Type of Visa/Permit |
Documentation |
Validity |
Eligibility |
|
Business Visa |
|
3 months |
|
|
Work Permit |
|
2 years |
|
VALUE ADDED TAX
- Subject to certain exclusions, most commercial operations are subject to an 18% VAT.
- VAT on tourism activities is 10%.
- A 17% special tax on financial activities (mainly banking, money transfers, and change operations) is applicable instead of VAT.
|
VAT |
|
|
Standard Rate |
18% |
|
Reduced Rate |
17% |
|
Reduced Rate |
10% |
|
Zero Rate |
0% |
WITHHOLDING TAX
The WHT rates on various types of payments are as follows (the tax is a final tax for non-residents and the rate may be reduced under an applicable tax treaty):
|
Payment |
Residents |
Non-Residents |
|
Dividends |
10% |
10% |
|
Interest |
16% |
16% |
|
Royalties |
20% |
20% |
|
Technical service fees |
20% |
20% |
TERMINATION
- Employees can terminate a contract with 15 days’ written notice, although technicians must provide two months’ notice.
- Employers may terminate employees for just cause with written notice as follows:
-
- Executives and similar: three months’ notice
- Monthly paid white-collar workers, blue-collar workers and permanent hourly, daily, or weekly paid staff: eight days to one month, depending on length of service.
- Workers are generally eligible for severance pay for each year of service of 25 to 40% of their average wages over the past 12 months.
- The percentage is based on length of service and the collective bargaining agreement
STATUTORY BENEFITS
- These are mandatory benefits as postulated by law
- These include probationary period, annual leave, public holidays, sick leave, maternity leave, overtime pay, notice period, and severance pay
- Statutory benefits also include social security benefits
|
Statutory Benefits |
|
Probationary Period |
|
Annual Leave |
|
Public Holidays |
|
Maternity Leave |
|
Sick Leave |
|
Overtime Pay |
|
Notice Period |
|
Severance Pay |
|
Social Security Benefits |
PAYMENTS AND INVOICING
- All individuals subject to PIT must file a tax return for all income (e.g. salary, movable assets) earned during the past year, except in cases where salaries are the sole category of income the employee benefits from and if those salaries have been properly submitted via withholding by the employer during the year.
- Social security contributions and PIT on an individual’s wages are withheld monthly by employers and are computed on the basis of gross remuneration paid, including fringe benefits and bonuses.
EASE OF DOING BUSINESS
- The ease of doing business index is an index created by Simeon Djankov, an economist at the Central and Eastern Europe sector of the World Bank Group.
- Higher rankings (a low numerical value) indicate better, usually simpler, regulations for businesses and stronger protections of property rights.
- According to the World Bank Senegal ranked 123rd in the World in 2019 in terms of ease of doing business.
