Togo: Ministers adopt new investment code aligning with national development plan

Economic governance
Thursday, 30 May 2019 13:20
Togo: Ministers adopt new investment code aligning with national development plan

(Togo First) - The Togolese government adopted a bill for a new investment code. This was during a council of ministers held yesterday, May 29.

The move aims, the ministers say, to “make the country’s legal investment framework more appealing to investors and steer their actions so as to achieve a strong and robust economic growth, enhancing job and wealth creation at economic and social levels.”

The new document features among new amendments to the former investment code, incentives that are proportional to investment (tax reduction varies based on investment size or impact on job creation); incentives varying according to business operating zones; fixed exoneration rates on dues, indirect and direct taxes over a five-year period.

Moreover, some amendments focus on status of holdings’ headquarters, regional headquarters of an international firm or their operational centres, which fosters job creation. Some also regard approval and declaration requirements, as well as redefine minimum re-investment thresholds.

A code that aligns with 2018-2022 PND

The new code, it should be noted, aligns with the three axes of the 2018-2022 national development plan (PND).

In effect, looking at the first axis, the new investment code, once adopted should “make Togo more attractive for major international companies, by offering specific tax incentives that will support the growth of a logistics hub, while at the same time enabling short-term growth of tax earnings, through the limitation of incentives” mentioned above.

Regarding axis n°2, the new code’s proportional tax incentives component will spur the development of long-term growth economic pillars.

Last, by ensuring job creation across the country, leveraging tax incentives based on implementation areas, the code aligns with the PND’s third axis relative to social growth and inclusion initiatives.

Séna Akoda

togofirst mobile

 
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