Calculate your take home pay in Benin (that's your salary after tax), with the Benin Salary Calculator. A quick and efficient way to compare salaries in Benin, review income tax deductions for income in Benin and estimate your tax returns for your Salary in Benin. The Benin Tax Calculator is a diverse tool and we may refer to it as the Benin wage calculator, salary calculator or Benin salary after tax calculator, it is however the same calculator, there are simply so many features and uses of the tool (Benin income tax calculator, there is another!) that we refer to the calculator functionally rather than by a specific name, we mention this here to avoid any confusion.
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Follow these simple steps to calculate your salary after tax in Benin using the Benin Salary Calculator 2023 which is updated with the 2023/24 tax tables.
That's it! Just a few simple steps to calculate your salary after tax in Benin with detailed income tax calculations. Need more from the Benin Tax Calculator? More detailed salary calculator or a wage calculator? Simply select 'advanced' to access more features of the tax calculator. If there are specific income related allowances or deductions in Benin that are not featured on the Benin tax calculator that you would like us to add, simply contact us and explain your requirement. New features for the Benin are added on request at no cost to you. We build tax calculators to support our community in Benin, whether resident or expats in Benin and expand the tool to suit our communities needs as required.
Benin has joined the growing list of African states, which have been imposing taxes, using internet and social media to increase access to taxation and increase central government funding. There have been a great number of changes in the tax rates, as announced by the Beninese government. A major change includes the decision of the government to reduce tax rates on the dividends paid by both listed and unlisted companies.
From 2019, the tax rate on the dividends obtained from the unlisted companies is reduced by 50%, i.e. from 10% down to 5%. The tax on dividends derived from listed companies reduced from 7% to 5%. The goals for this reduction are encouraging foreign investment as well as to incentivize local companies to initiate IPOs.
All residents in Benin have to pay an income tax on their earnings, including expats and foreigners. If someone works as a foreigner, it is not always necessary to pay income tax at the Beninese rates on all incomes. The tax deductions depend on the residency status. If an individual is considered as a resident of Benin for tax purposes, it is automatically implied that they have resided in Benin for more than 183 days in a year. This again results in the application of Beninese rates on income from any part of the world. However, if the individual lives and works in Benin for less than 183 days in a year, the income tax will be deducted at Beninese rates on the Beninese income only.
Benin is known for its progressive system of income tax. This means that the total earnings for the fiscal year will be the main thing predetermining the amount of income tax that will be deducted.
Personal income tax (PIT) is taxed under 5 schedules, namely, non-commercial profits, industrial and commercial profits, employment income in the form of wages, salaries, bonuses and benefits in kind, property income and income from movable capitals.
The progressive rates range from 20%-45%. Tax on salaries is deducted at source at progressive rates varying from 10% to 30%. Non-residents do not have any specific rates of taxation.
Resident corporations are taxed on profits earned from Benin and foreign source dividends, royalties, interests and capital gains but not on industrial and commercial profits earned from foreign source. Non-resident entities are liable for tax on sources on income from Benin only and on rental value of any property in Benin.
The income of organizations is taxed under four schedules, namely, industrial and commercial profits, income from movable capital, non-commercial profits and rental income. The dividends received from domestic companies are not included while calculating the tax when the determination of corporate tax liability is done.
Corporate income tax rate for companies that are non-industrial in nature and partners that opt for corporate income taxation pay 30%. Industrial companies are subject to a tax deduction of 25%. The rate of deduction is between 35% and 45% for oil companies involved in research, production, exploitation and sale of hydrocarbons.
Value Added Tax (VAT) is levied on various transactions carried out in Benin and imports into the country. VAT is also levied on various supplies of services and goods used or made use of in the country. The standard rate of VAT in Benin is 18%. There are a few things to note about VAT exemptions in Angola:
Every individual or legal entity that purchases goods for reselling or carrying out any kind of commercial, non-commercial, industrial, professional or artisan related activities, are subject to VAT deductions and must register with the tax authorities.
For capital duty, no duty is levied in the formation of a company. Though, an increase in capital will be subject to a fixed duty rate of XOF 6, 000. There is also a 4% payroll tax, which applies in certain situations. Property Owners situated in main towns must pay a 6% annual real property tax, the property tax rate in Benin changes to 5% if the property is not developed.