In Togo, a new version of commerce registry and mobile credit database (RCCM) will be released online by the end of March 2019. This was revealed at a workshop on the platform’s update last January.

The database should help the public freely access reliable information relating to their commercial partners’ legal and financial situation, but also their prior commitments.

In effect, the RCCM contains data such as firms’ balance sheets, details on their management, financial commitments, privileges and legal actions affecting them such as bankruptcy, sales, dissolution…  

Adopted as it is now in 2016, the RCCM got OHADA’s support in 2017, with the launch of an integrated software to manage national registries and files.

It is now possible to refer to commercial courts via lawyers and bailiffs, as well as pay enrolment fees online via Flooz and Tmoney. This was disclosed by Kossi Kutuhun, President of Lomé’s Court of Instance, in an ordinance dated January 31, 2019.

“The concerned fees can now be paid online on the platform handling commercial disputes, legally,” the judge said. Launched in 2015, this platform was recently updated and introduced to lawyers and bailiffs. Soon, payment via banking cards will be possible as announced last January by the firm in charge of developing and launching the platform. 

The new functionalities integrated were to improve Togo’s business climate. In effect, they help better manage registration of commercial conflicts, speed up related procedures and efficiently solve them in commercial courts.

Tag: Recent reforms

Last Tuesday, local economic actors were introduced to the latest updates of FORSETI, the software handling online procedures related to commercial conflicts in Togo. This was during a meeting held in the framework of the project to reinforce the commercial chambers of the lower and appeal courts of Lomé.

“For a long time, only judges and clerks used the platform”, says Kouami Gaméli Lodonou, head of mission of the project. Now, lawyers can “refer to commercial courts, pay online, and track their cases”, using the software. This significantly saves time for court officers and their clients.

The recent meeting, let’s indicate, aimed also to make reforms implemented in Togo to improve its business climate known to taxpayers.

Also, last month, the FORSETI’s innovations were presented to court officers, during a meeting launched by the National Program for Justice Modernization (PNMJ) and the Business Climate Cell.

Ayi Renaud Dossavi

In Togo, two commercial courts will be created to appropriately deal with business conflicts.

The related decision was taken during a council of ministers held last Wednesday, a statement released by Foli-Bazi Katari, spokesperson of the government and minister of communication revealed.

The two new courts, the first of which will be in Lomé and the second in Kara (414 km North of Lomé), respectively cover the maritime and Kara regions.

The decision to establish the two courts aims at “adapting procedural business law to the transformation of this sector”, in addition to efficiently meet needs, by transferring “commercial cases to specialized jurisdictions”.

The two new courts are the first in many to come. Indeed, “many other similar jurisdictions will be created to gradually cover the whole country and finalize the process started”, reads the statement.

Ayi Renaud Dossavi

In Togo, companies that pay value added tax (VAT) must from now on pay a single 18% tax rate. This was disclosed by Ahmed Esso-Wavana Adoyi, Tax commissioner at the Tax Revenue Office (OTR).

The new measure was set under the new tax regime, in effect since Jan 1.

“We have been scolded by the WAEMU. Now, it is either the 18% or nothing,” claimed the commissioner.

As for VAT loans, an escrow account will be created to ensure their rapid reimbursement.

At the end of 2018, the OTR decreased VAT on basic commodities from 18% to 10%. Actually, the tax was suppressed for non-processed milk, rice (excluding first-class rice), mobile terminals and IT equipment, leasing transactions in transport and clean power production equipment.

Fiacre E. Kakpo

Judicial officers, lawyers and bailiffs notably, now have the possibility to initiate online procedures with commercial chambers via Forsetti commerciale, the commercial platform developed by Pero Groupe, a software development firm.

An information meeting was hosted on January 11, 2019, at Maison de l’Avocat. It was initiated by the national programme for justice modernization (Programme National de Modernisation de la Justice -PNMJ) and the business council (Cellule Climat des affaires) which was represented by Sandra Ablamba Johnson (photo), state secretary and coordinator of the business council. The meeting was also attended by the chairman of the bar association of Togo, Me Rustico Latévi Lawson-Banku. 

The aim of this meeting was to share information on updates to the commercial dispute management platform, notably, additional features for the processing of commercial records being used at the lower court of Lomé court of appeal.

According to Ulriche Fiacre Aihou, CEO of Pero Groupe, the new features will help lawyers and bailiffs refer to the commercial chambers online, pay legal fees online via Flooz and Tmoney, as well as check the progress of the case. The CEO also promised that soon, these fees could be paid with bank cards.  

A new system for automatic SMS or email notification to the parties or their counsel, about the case, is also added. In addition, the dispatching of the files to the judges will be made according to an automatic system.

The initiative helps take into account, the business men’s worries as far as promptness and security are concerned. It is also aimed at improving the business environment.

Séna Akoda

In Togo, firms paying the Single Professional Tax (TPU in French) are exempted from paying this tax in their first two years of activity. This was revealed last Monday by the tax commissioner himself, Ahmed Esso-Wavana Adoyi.

Exemption period in 2018 was only a year but it has been extended in line with incentives initiated by Lomé to cut charges paid by young entrepreneurs when starting their business. Last year, the initial exemption pushed the number of new businesses created by persons in Togo to 7,512 which represented 71% of all firms created that year.

The TPU is a tax paid by craftsmen and microenterprises operating in the informal sector and backed by public entities like the DOSI. It is paid to the government or local communities (for businesses whose turnover are equal to or less than CFA30 million). It concerns only individuals whose annual turnover is equal or lower than 60 million CFA, regardless of their business. It should be highlighted that under the previous tax code, the turnover set for firms paying this tax was set at CFA30 million.

Also, by paying the TPU, firms concerned no more have to pay income tax, annual minimum tax (IMF), business tax now a patent, 3% tax on wages and value added tax (VAT).

Fiacre E. Kakpo

Starting January 1, 2019, Togo’s government will provide a set of exemptions to firms undergoing restructuring and facing some difficulties.

In effect, tax reliefs will be granted for a maximum of five years, with the approval of the ministry of finances. This measure will benefit firms that operate in strategic sectors which are promising, in terms of employment and growth, as well as those planning substantial investments. Last, there are firms in difficulty to sustain competition.

The new derogation system has several tax advantages for companies in difficulty. These include exemptions on profits, provision reversal, and capital gains from sales, among others. Also, wages, built and unbuilt properties, financial transactions and turnovers could be exempted.

The reliefs also concern registration fees and stamps purchased to increase capital in cash or by incorporating debts, profits, reserves or provisions of any sort. Are also exonerated mergers of firms and the transfer of shares and fixed assets.

It should be highlighted that the ministry’s approval can be limited to one or more, or all tax reliefs projected under the new derogation regime.

Fiacre E. Kakpo

In Togo, privatization operations will be covered by a general legal framework. Initially handled under the law n°2014-014 of October 22, 2014 regarding the modernization of the State’s action,  elaboration of modalities related to "competition between candidates running in a privatization project”. 

Indeed, the new law introduces three new articles including the n°66 which suppresses the act previously in force empowering the regulatory authority to define modalities related to “competition between candidates running in a privatization project”.

As a result of this new law, the national assembly, in the coming days, weeks or even months, should adopt a new general legal framework to regulate private processes.

As for the regulatory authority, it will set related execution conditions and modalities. In this regard, the minister of Finance, Sani Yaya, declared: “The establishment of modalities related to competition between candidates running in a privatization by the national assembly will alleviate the privatization process, in addition to making it more transparent.”

Séna Akoda

Between January and August 2018, around 2032 land titles were issued, against 1034 over the same period the previous year. The rise (+55.8%) was spurred by the various reforms implemented by the Business Climate Cell and measures initiated by the Togolese Revenue Office.

In effect, the improvement is to be attributed to the tax office’s decision to sign up to 100 titles and 150 plot plans every week. In this framework, from September 1 to 13, 2018, 126 land titles were produced, against 75 in 2017, over the same period.

Meanwhile, significant efforts were mustered in regards to the issuance of post-registration acts such as mortgages and property transfers…

Since June, the tax commissioner, as conservator of land and mortgages delegated his signature to Bali Komi, head of Land Conservation, for the issuance of all documents related to post-registration activities.

This decision, he took to speed up processes, optimize revenues and facilitate access to loans for business owners.

For the tax commissioner's office, the adoption of the new tax code voted June 5, paired with purchase of new cadastre and land conservation equipment, paved the way for much more progress in regards to land management.

Fiacre E. Kakpo