Africa

Benin

Corporate rate
30%
Top personal rate
30%
VAT / GST rate
18%
One-sentence summary Benin's corporate tax position: 30% standard rate (25% for industrial sector companies; 35-45% for oil/hydrocarbon exploration and production). Personal income tax: Progressive, up to 30%. VAT/consumption tax: 18% standard VAT.

Corporate Tax Rate

30% standard rate (25% for industrial sector companies; 35-45% for oil/hydrocarbon exploration and production).

Personal Tax Rate

Progressive, up to 30%.

VAT / GST Rate

18% standard VAT.

Residency

An individual (Beninese or foreign national) whose tax domicile is in Benin is subject to personal income tax on worldwide income; individuals not domiciled in Benin are taxed only on Benin-source income, confirmed via a specialist Africa-business-law source (Addleshaw Goddard). Foreign-source income already taxed abroad may be exempt where a tax treaty applies. Resident companies (including branches/permanent establishments of foreign entities) are taxed on the standard 30% rate.

CFC (Controlled Foreign Company) Rules: Not identified

No Controlled Foreign Company regime was identified in available sources this session. This is a genuine gap rather than a confirmed absence.

Thin Capitalization

Confirmed via Addleshaw Goddard: Benin has no specific thin capitalization rules based on a debt-to-equity ratio. Instead, a rate-based limitation applies - loan interest paid to shareholders is disallowed as a deduction to the extent the applicable interest rate exceeds the West African States Central Bank (BCEAO) base rate by more than three percentage points.

Foreign Bank Account / Foreign Financial Asset Reporting

No domestic FBAR/Form 8938-equivalent requiring Benin residents to self-report their own foreign accounts was identified. Institutional-level CRS/FATCA participation status was not independently confirmed this session. Separately and independently of local law, US citizens and Green Card holders with Benin accounts remain obligated to file FinCEN Form 114 (FBAR) once aggregate foreign accounts exceed USD 10,000, and potentially Form 8938, regardless of local requirements.

Treaty Network

Benin has no bilateral income tax treaty with the United States, confirmed directly via the US Department of State's 2025 Investment Climate Statement, meaning US investors may face double taxation on Benin-source income with no treaty-based relief mechanism. Benin does have a treaty with the Belgium-Luxembourg Economic Union (signed 2001) and, as a WAEMU (UEMOA) member since 1994, participates in the regional tax harmonization framework covering corporate income tax, VAT, and excise directives shared across member states. A comprehensive named-partner list of Benin's other bilateral treaties was not compiled this session.

Sources: Addleshaw Goddard - Doing Business in Benin (residency, thin capitalization), US Department of State - Benin Investment Climate Statement 2025 (no US treaty, WAEMU membership), Trading Economics - Benin corporate tax rate (Direction Generale des Impots). Page last verified: August 08, 2026. General information only - confirm current rates with a licensed advisor in this jurisdiction before relying on this page.