Togo Updates Legal Framework for Approved Management Centers

Economic governance

Monday, 03 July 2023 08:01

Togo Updates Legal Framework for Approved Management Centers

(Togo First) - Togo is updating its legal framework for approved management centers (CGA), specific structures set up to support small and medium-sized enterprises (SMEs) in their accounting, tax, and social management. On June 29, during its sixth ordinary plenary session of the year, the National Assembly validated a law in this framework.

The previous version of the framework has been effective for 23 years and was drawn in 1997. Besides the updates, Lomé is transposing a 2022 community directive (WAEMU) aimed at improving business management by facilitating their creation and membership in CGAs.

"This new law, which takes into account the innovations of the new directive, will bring more flexibility to the creation and membership of Approved Management Centers (CGA)," said Sani Yaya, Minister of Economy and Finance, present during the session. "It allows, among other things, to improve company governance and provide CGA members or customers with assistance in management, to offer them services in terms of information and training, to support them in preventing and resolving difficulties, to maintain and present their accounting, and to assist them in tax matters and social law," he added.

Innovations and incentives

With the updated bill, CGAs can operate as capital companies, except for single-person businesses. This measure aims to encourage the development of CGAs in Togo, by offering new opportunities for financing and growth.

The government also plans other incentives, such as State subsidies for associations and a 5% preference in favor of members in public procurement procedures, cumulative with the community preference rate of 15%.

A surveillance structure should also be created within the tax administration to monitor and supervise CGAs.

Commenting on the projected developments, Minister of Finance, Sani Yaya, lauded the law’s adoption and claimed it would provide Togo with the legal means for the harmonious development of CGAs.

Ayi Renaud Dossavi

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