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 BASIC COUNTRY FACTS

Togolese Republic

Lome

  • French
  • Yoruba

7.889 million

West African CFA franc

.tg

+228

West African CFA franc

STATUTORY LABOR REQUIREMENTS

Probation Period

  • For workers paid monthly, the probationary period is one month (renewable once) for workers, employees and others; three months (renewable once) for supervisors, technicians and associated professionals six months (non-renewable) for managers and others

Annual Leave

  • Workers are entitled to an annual holiday of 30 days a year for two and a half days per month.

Public Holidays

  1. New Year's Day (1st January)
  2. Easter Monday (13th April)
  3. Independence Day (27th April)
  4. Labor Day (1st May)
  5. Ascension Day (21st May)
  6. Eid al-Fitr
  7. Whit Monday (1st June)
  8. Martyrs' Day (21st June)
  9. Eid al-Adha
  10. Assumption of Mary (15th August)
  11. All Saints' Day (1st November)
  12. Christmas Day (25th December)

Maternity Leave

  • The Labor Code provides 14 weeks (98 days) of maternity leave for women, including 6 weeks of post-natal leave. 
  • Maternity leave may be extended by a further 3 weeks in the case of a complication and illness resulting from pregnancy, childbirth or multiple pregnancies or for reasons of child’s health duly noted by doctor.

Paternity Leave

  • There is no mandatory paternity leave

Sick Leave

  • According to the Labor Code, a worker is entitled to sick leave for 5 days a year.

Work Hours

  • Normal working hours are 40 hours per week.

Overtime

  • In accordance with the Interprofessional Collective Agreement, an employer is required to pay overtime pay at the following rates:
    • 20% of their hourly wage for the first 8 hours during the day (41 to 48 hours);
    • 40% of their hourly wage for overtime of more than 48 hours during the day; and
    • 65% of normal pay if they work on Sundays and holidays.

Notice Period

  • The Collective Agreement specifies the minimum duration of the notice period as follows:
    • one month for workers, employees and the like;
    • three months for supervisors, managers and others; and
    • five days for paid workers per hour.

Severance

  • A 2011 collective agreement requires employers to provide severance pay in cases of dismissal on economic grounds to employees with at least one year of continuous service with the same employer. 
  • The amount varies according to the years of continuous service: 
    • a lump sum of 35% of the employee's average annual salary during the employment period with one to five years; 
    • a lump sum of 40% with six to nine years; or 
    • a lump sum of 45% with 10 or more years.

13th Month Salary in Brazil

  • No
  • There is no statutory requirement to pay the 13th or the 14th month salary.
  • There benefits that employee receive include retirement and parental benefits, but there is no evidence that monetary benefits are common.

INCOME TAX

  • Residents are taxed on their worldwide income. 
  • Non-residents are taxed as residents when they have spent at least six months in Togo and have a tax domicile in Togo; otherwise, non-residents are taxed only on Togo-source income
  • Taxable income includes industrial and commercial profits, non-commercial profits, agricultural profits, employment income (including benefits in kind), capital gains and income from property, securities and other assets. 
  • Industrial and commercial profits, noncommercial profits and agricultural profits are taxed at a rate of 30% after deduction of expenses.
  • The tax rates are progressive and range from 0.5% to 35%. 
  • When annual earnings exceed XOF15 million, the following formula is used in the calculation of income tax: Tax = (Taxable income – XOF15 million) x 0.35 + XOF3 021 500. 
  • Non-residents who spend more than six months in Togo during the fiscal year are taxed at the same rates as residents.

Taxable Income (XOF)

Rate

0 – 900 000

0.5%

900 001 – 4 million

7%

4 000 001 – 6 million

15%

6 000 001 – 10 million

25%

10 000 001 – 15 million

30%

Over 15 million

35%

DEDUCTIBLE EXPENSES

Personal Deductions

  • A deduction of a percentage of net wages is allowed that covers contributions for public health insurance, social security and certain other deductions. 
  • Deductions are allowed for certain expenses relating to real property, and interest on loans for the acquisition of a building or for building repairs in Togo is deductible for the first 10 years of the loan. 
  • Deductions are allowed for dependent relatives, and the amount of the deduction per dependent has increased from XOF6 000 to XOF10 000 per month in 2019.

Business Deductions

  • Expenses and costs incurred for the purpose of operating a business generally are tax deductible, including the following: rents, personnel and labor costs, direct and indirect remuneration paid in respect of work, interest paid to shareholders, royalties, management fees, technical assistance fees and research costs paid by a Togolese company or a Togolese PE of a foreign company and fees and remuneration paid to intermediaries

Deductible Expenses

Personal Deductions

  • A deduction of a percentage of net wages is allowed that covers contributions for public health insurance, social security and certain other deductions. 
  • Deductions are allowed for certain expenses relating to real property, and interest on loans for the acquisition of a building or for building repairs in Togo is deductible for the first 10 years of the loan. 
  • Deductions are allowed for dependent relatives, and the amount of the deduction per dependent has increased from XOF6 000 to XOF10 000 per month in 2019.

Business Deductions

  • Expenses and costs incurred for the purpose of operating a business generally are tax deductible, including the following: rents, personnel and labor costs, direct and indirect remuneration paid in respect of work, interest paid to shareholders, royalties, management fees, technical assistance fees and research costs paid by a Togolese company or a Togolese PE of a foreign company and fees and remuneration paid to intermediaries

IMMIGRATION

  • Nationals from certain countries, including Benin, Ghana, Guinea, Mali, Niger, and Senegal, do not need a visa to enter Togo. 
  • Individuals with diplomatic and service passports from China and Morocco do not require a visa.
  • Everyone else must obtain one of the following visa types:
    • Tourist visa: Individuals traveling to Togo for tourism, a visit, or other nonbusiness-related purposes should apply for this single- or multiple-entry visa, which is valid for up to 90 days.
    • Business visa: Foreigners entering the country for business-related purposes should obtain a single- or multiple-entry business visa for up to 90 days.
    • Immigration visa: This visa is for foreigners intending to live in Togo long-term.
  • The most common documents that applicants will need across visa types include:
    • A passport valid for at least six months from the end of the stay with two blank pages
    • Copies of the employee’s first two passport pages
    • A completed visa application form
    • Two recent passport-size photos
    • Proof of a return flight
    • Travel insurance for the duration of the stay
    • A yellow fever certificate
  • Immigration visas require proof of income, such as a bank statement, as well as proof of health insurance and a motivational letter for moving to Togo.

 

Type of Visa/Permit

Documentation

Validity

Eligibility

Tourist Visa

  • A passport valid for at least six months from the end of the stay with two blank pages
  • Copies of the employee’s first two passport pages
  • A completed visa application form
  • Two recent passport-size photos
  • Proof of a return flight
  • Travel insurance for the duration of the stay
  • A yellow fever certificate

3 months                                                        

  • Foreigners who want to visit Togo for recreational purposes must obtain a tourist visa

Business Visa

  • A passport valid for at least six months from the end of the stay with two blank pages
  • Copies of the employee’s first two passport pages
  • A completed visa application form
  • Two recent passport-size photos
  • Proof of a return flight
  • Travel insurance for the duration of the stay
  • A yellow fever certificate
  • Invitation Letter

3 months

  • Foreigners who wish to visit Togo for business purposes such as conferences must obtain a business visa

Immigrant Visa

  • A passport valid for at least six months from the end of the stay with two blank pages
  • Copies of the employee’s first two passport pages
  • A completed visa application form
  • Two recent passport-size photos
  • Proof of a return flight
  • Travel insurance for the duration of the stay
  • A yellow fever certificate
  • Bank statement
  • Proof of health insurance
  • Motivational letter

3 months

  • Foreigners who wish to work in Togo must obtain an Immigration Visa

VALUE ADDED TAX

  • The standard VAT rate is 18%. 
  • Companies that supply certain services, including financial, insurance, medical and transport services, are exempt from VAT.

VAT

Standard Rate

18%

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

13%

13%

Interest

6%-13%

6%-13%

Rents

12.5%

12.5%

Management/

professional fees

5%/10%

20%

Capital gains tax

7%/15%

7%/15%

 TERMINATION 

  • The fixed-term contract terminates on the expiry of its term or upon termination by one of the parties. 
  • The fixed-term contract can also be broken in case of force majeure; agreement of the parties, provided that it is recorded in writing; heavy mistake; and the judicial resolution.
  • The employment contract of indefinite duration may be terminated by the will of one of the parties, provided that the party initiating the termination gives notice.
  • The Collective Agreement specifies the minimum duration of the notice period as follows:
    • one month for workers, employees and the like;
    • three months for supervisors, managers and others; and
    • five days for paid workers per hour.
  • A 2011 collective agreement requires employers to provide severance pay in cases of dismissal on economic grounds to employees with at least one year of continuous service with the same employer. 
  • The amount varies according to the years of continuous service: 
    • a lump sum of 35% of the employee's average annual salary during the employment period with one to five years; 
    • a lump sum of 40% with six to nine years; or 
    • a lump sum of 45% with 10 or more years.

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

  • The tax year is the calendar year.
  • Spouses are taxed separately. 
  • However, a single return for the total income of a household may be requested.
  • If an individual only has employment income, the employer withholds tax under the PAYE system and remits the balance tax to the government by 31 January of the following tax year. 
  • If the individual derives other income, he/she must submit an annual return by 31 March of the following tax year. 
  • An individual must make advance payments of tax on other income by 31 January, 31 May, 31 July and 31 October of each year.
  • Penalties for failure to comply with the tax rules vary, up to a maximum of XOF150 000.

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 Togo ranked 97th in the World in 2019 in terms of ease of doing business.

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