Library of Congress

Law Library of Congress

The Library of Congress > Law Library > News & Events > Global Legal Monitor

Benin: New Finance Law Adopted

(Apr. 9, 2010) On January 1, 2010, Benin adopted a new Finance Law; it went into effect on the same day. The new provisions change the withholding tax rates on payments to individual, non-resident service providers to 25% from the previous rate of 35%. The parallel reduction for corporate recipients is from 38% down to 30%. Both rates apply to 40% of the gross payment. (Albert Atangana, Benin: Finance Law for 2010 Enacted—Details, TAX NEWS SERVICE, Apr. 9, 2010 (subscription database from the International Bureau of Fiscal Documentation.)

In addition, the new Law establishes a GSM (Global System for Mobil Communications) communication fee of F.CFA 15 per minute (about US$0.02) for international calls and F.CFA 2 per minute (about US$0.004) for domestic ones. The fee does not apply to short message system-dialed phone numbers where the number dialed is less than eight digits or to roaming services and Internet calls. (Id.)

Under the 2010 Law, a single tax identification number is to be used for direct and indirect taxation and must be indicated on all invoices and any other documents related to taxable transactions. (Id.)