Investment Incentives in Benin

Investment Incentives in Benin

General Incentives

Various incentives are granted under several laws, including the Investment Code, Mining Code, Petroleum Code, Environment Code, and Free Zone Law etc.

Tax Incentives

  • New or expanding enterprises that contribute to the Government’s economic and social objectives may be eligible for incentives during a “setting-up” period of up to 30 months, and five to nine years of business operations, depending on the location.
  • Enterprises investing at least XOF500 million, and creating at least 20 new jobs for nationals of Benin, will be able to import production plant, machinery and spare parts, duty-free; export production, free from export duties; and are tax-exempt on industrial and commercial profits for an approved period.
  • Enterprises investing at least XOF3 billion may obtain guarantees of a stable tax basis. One-half of profits re-invested in approved projects, may be deducted from taxable income. New industrial enterprises, or divisions of established corporations, may be granted a five-year income tax exemption.
  • Enterprises licensed to operate in Industrial Free Zones, may be granted a 10-year exemption from income tax on industrial and commercial profits, as well as other tax concessions.
  • Financial and banking institutions, holding companies in general, and insurance companies, may obtain a license to operate in Industrial Free Zones.

Export Incentives

• Companies which benefit from Free Zone regime.

• Exemption from VAT is allowed on exported products or services

About The Author

John Muhaise-Bikalemesa (JMB), is the founder of Muhaise.com blog and bigdrumassociates.com company. Learn more about him here and connect with him on his social medias below

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