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
