GROW YOUR BUSINESS IN SENEGAL
Have an enterprise level payroll department and a HRMS with Employee Self-Service at a per employee cost
Praxima Services Includes
Full Payroll Outsourcing
Hybrid Payroll Outsource
International Payment Management
Social Security Filing
Interact with Local Authorities
Human Resources Management System
Integration with all Accounting and Third Party
Benefits of outsourcing to Praxima
Local Tax Compliance
Secure Data Transferring
Running Your Payroll
Focus on Your
Full International Quality Payroll Provider in Senegal
Payroll in Senegal
Payroll taxes are payable by the employer at 3% of the taxable gross salary. Senegal makes use of the PAYE system in which the employer withholds personal income tax from the employee's wages.
TAX RATES | 2022
Taxable income in West African Frank (CFA)
Up to 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%
Above 13 500 000 40%
SOCIAL SECURITY | 2022
Only the employer contributes to the social security contributions which consists of 7% towards family benefits and between 1% and 5% towards industrial accidents, depending on the type of business. Both the employer and employee contributes towards the employee's retirement. For general staff, the employers contributes 8.4% and the employee 5.6% up to a maximum of XOF 360 000. For executive staff, an employer will contribute 3.6% and the employee 2.4% up to a maximum of XOF 1080000. The employer shall subscribe medical coverage to all employees, of which the level will depend on the type of agreement. Usually the employee is reimbursed for 80% of his/her medical expenses, however the law provides a range of 50% to 80%.
STATUTORY FILING | 2022
The tax year in Senegal is a calendar year running from January to 31 December. Joint returns are not permitted, thus each individual is required to file independently. An employee whose only source of income is derived from employment is exempt from filing a tax return as it is required by the employer to withhold and remit the taxes. Should a taxpayer receive an income other than that coming from an employment, he/she is required to declare the total amount of income once a year. Returns are filed on or before 31 January or 30 April, depending the type of income. Penalties are impose on late payments, late filing, failure to file and or filing incorrectly.
An individual will be considered a resident for tax purposes if he/she has a permanent place of dwelling in Senegal, or his/her center of interest is located in Senegal, or lastly, if the individual is present in the country for more than 183 days over any 365-day period. Residents are taxed on their worldwide income while non-residents will only be taxed on their Senegal-source income.
All sources of income, such as wages, salaries, commercial or non-commercial activities and proceeds from agricultural are considered taxable income. Benefits-in-kind are taxable in accordance with the sales published by the tax administrator or in accordance with their fair market value.
Diplomats and foreign consular agents will be exempt from tax on their income earned while exercising their diplomatic or consular functions, if their countries provides the same benefits to Senegal diplomatic and consular staff present.
Your HRMS is Standard
PAYMENTS, REPORTING & FILING
Direct payment into employee bank accounts. Emailed password protected pay slips.
Payment of taxes, benefit providers and other creditors.
Filing of returns to the authorities.
Generation and filing of statutory reports.
General ledger and 100's of customisable reports.