DOWNLOAD
- 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
SHARE ON SOCIAL
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
- New Year's Day (1st January)
- Easter Monday (13th April)
- Independence Day (27th April)
- Labor Day (1st May)
- Ascension Day (21st May)
- Eid al-Fitr
- Whit Monday (1st June)
- Martyrs' Day (21st June)
- Eid al-Adha
- Assumption of Mary (15th August)
- All Saints' Day (1st November)
- 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 |
|
|
Business Deductions |
|
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 |
|
3 months |
|
|
Business Visa |
|
3 months |
|
|
Immigrant Visa |
|
3 months |
|
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.
