Mali

In Mali, employers face various tax obligations for their employees and business operations.

Employer Taxes

• Payroll Tax: This tax is levied at a rate of 3.5% on the gross salary of each employee.
• Social Security Contributions: Employers contribute 35% of the employee's gross salary towards social security. This covers areas such as family allowances (8%), work injury (1-4%), old age, disability, and survivor benefits (5.4%), sickness (3.5%), and maternity leave. A 1% contribution is also made to the National Employment Agency (ANPE).
• Housing Tax (Taxe-logement TL): This tax is levied at 3.5% of the employee's gross wages.

Employee Taxes

• Social Security Contributions: Employees contribute 3.6% of their pre-tax salary for old age, disability, and survivor benefits and 3.06% for sickness and maternity benefits.
• Personal Income Tax (ITS): This tax is applied to all forms of remuneration, including salaries, bonuses, and benefits. The tax is calculated on a progressive scale, with specific rates depending on income brackets. The first XOF 330,000 is tax-free, followed by a 5% rate between XOF 330,001 and 578,400, and gradually increasing rates for higher income brackets.

Corporate Taxes

• Corporate Income Tax: The general corporate tax rate in Mali is 35%. Holding companies may be exempt.
• Value Added Tax (VAT): The standard VAT rate is 18%. However, a reduced rate of 5% applies to specific goods and services like computer hardware, solar energy equipment, and hotel accommodations.
• Provisional Tax: Payable in three installments—before March 30th, July 31st, and November 30th—this tax is based on 35% of the previous year's tax liability.

Other Taxes

• Property Tax: Applicable at a rate of 3% of the property's total value.

Tax Deadlines

• Annual Corporate Tax Return: Due by April 30th of the following year.

Please note that this information is current as of February 5, 2025, and may be subject to change.

In Mali, employers are responsible for deducting various taxes and social security contributions from employee salaries.

Income Tax

Personal income tax is calculated using a progressive tax system based on annual taxable income.

• XOF 0 - 300,000: Exempt
• XOF 300,001 - 900,000: 5%
• XOF 900,001 - 1,900,000: 10%
• XOF 1,900,001 - 3,900,000: 20%
• XOF 3,900,001 - 6,900,000: 30%
• XOF 6,900,001 and above: 35%

Social Security Contributions

Both employers and employees contribute to the social security system.

• Employee Contribution: 3.6% of pre-tax salary.
• Employer Contribution: 35% of the employee's pre-tax salary. This includes contributions towards family allowances, maternity, work injury, old age, disability, survivor benefits, and sickness. The individual breakdown from the employer is as follows:
  • Family Allowances and Maternity: 8%
  • Work Injury: 1% - 4%
  • Old Age, Disability, and Survivor: 5.4%
  • Sickness: 3.5%

Payroll Tax

A payroll tax of 3.5% is levied on the employee's gross salary. The employer is responsible for withholding and remitting this tax.

Other Taxes

While not directly deducted from employee salaries, other relevant taxes in Mali include:

• Corporate Tax: 35% of company profits (with exceptions for Holding Companies)
• Value Added Tax (VAT): 18% on most goods and services.
• Property Tax: 3% of the property's total value.

Tax Return Filing and Deadlines

• Corporate Tax Returns: Due by April 30th of the following year.
• Provisional Corporate Tax: Payable in three installments – March 30th, July 31st, and November 30th. It equals 35% of previous year's tax liability.
• VAT Registration: Must be obtained within 30 days of incorporating a subsidiary.

General Information on Mali Taxes

The information above pertains specifically to employee tax deductions. It's important to note that this information is current as of today, February 5, 2025, and might be subject to change. For the most up-to-date and detailed information, consulting with local tax professionals or legal experts in Mali is recommended. They can offer guidance tailored to your specific circumstances.

Mali's tax system aims to fund government services, infrastructure projects, and social welfare programs. The government is focused on modernizing tax administration, broadening the tax base (including potential expansions into sectors like agriculture and the digital economy), and strengthening fiscal controls to enhance revenue collection. Staying informed about these developments can help businesses operate effectively within Mali's evolving regulatory landscape.

Value Added Tax (VAT) is a consumption tax levied on goods and services in Mali.

VAT Rates

• Standard Rate: 18% applies to most goods and services.
• Reduced Rate: 5% applies to specific goods like computer and solar energy equipment. As of today, February 5, 2025, there have also been temporary waivers or suspensions of VAT on essential goods, including diesel, though it's crucial to confirm the current status of these measures.

VAT Registration

While there isn't a separate VAT registration number, businesses exceeding a specific annual turnover threshold must register for a single Tax Identification Number (TIN), which is used for all tax obligations. The turnover threshold to collect and invoice for VAT is XOF 50 million (approximately EUR 76,224.50). Businesses below this threshold do not collect VAT and cannot deduct input VAT on their purchases. Information from some sources indicates a lower threshold (XOF 30 million), but prevailing information indicates that XOF 50 million is currently the applicable threshold. Clarification should be sought from relevant authorities.

VAT Filing and Payment

Businesses registered for VAT are required to file monthly returns, generally by the 15th of the following month. Non-resident businesses making taxable supplies in Mali must appoint a fiscal representative in Mali responsible for VAT compliance. Without a representative, a reverse charge mechanism may apply, placing the obligation on the Malian customer.

Penalties

Penalties exist for late filing and payment:

• Late Payment: 2% interest per month of delay, capped at 20%.
• Late Filing:
  • 25% fine if the declaration is made spontaneously after the deadline (exceeding one month).
  • 5% fine if the delay doesn't exceed one month (and no reminder was sent).
• Omissions/Reductions in Taxable Amount: 50% penalty (100% in case of bad faith).

Exempt Goods and Services

Several goods and services are exempt from VAT, including certain basic food items, medical services (excluding cosmetology and similar services), and public road transport services (excluding hired or rented vehicles and ride-hailing services).

Additional Notes

• The information provided is based on available information as of February 5, 2025 and might be subject to change, especially given some recent temporary waivers and amendments. It's important to consult with the local tax authorities or a tax advisor in Mali for up-to-date information.
• Specific details on exact exemptions and applicable rates can also vary over time and should be confirmed with up-to-date legislation.

Mali offers various tax incentives primarily aimed at promoting investment, boosting specific sectors, and encouraging local sourcing.

General Investment Incentives

• Profit Reinvestment: Incentives are available for companies reinvesting profits for business expansion or diversification within Mali.
• Local Sourcing: Tax exemptions are granted to companies using a minimum of 60% locally produced raw materials.
• Research and Development: Companies investing at least 5% of their turnover in local R&D can benefit from reduced payroll taxes for Malian employees.
• Regional Development: Incentives such as income tax exemptions (5-8 years), reduced energy prices, and infrastructure support are offered for businesses established outside the capital, Bamako.

Export-Oriented Businesses

• Tax-Free Status: Companies exporting at least 80% of their production are entitled to a 30-year tax exemption. Up to 20% of production can be sold domestically, subject to applicable import taxes.

Sector-Specific Incentives

• Mining: The 2019 mining code offers incentives for large mining companies. However, recent legislative changes have also introduced complexities, including increased government stake in foreign investments and removal of certain tax exemptions. Details about current incentives within the revised mining code are not available in the provided sources. It's important to consult updated resources for current information as of February 2025.
• Real Estate: Specific incentives exist for property development companies resident in Mali under the Real Estate Investment Code of 1999.
• Renewable Energy: Equipment related to renewable energy is exempt from VAT and import taxes.
• Cultural Goods: Reduced taxes are applied to imports of cultural goods.
• Essential Goods: Short-term tax exemptions may be granted on essential products like rice, cooking oil, milk, and sugar during periods of price hikes.
• Agriculture Subsidies: While not strictly tax incentives, substantial subsidies aim to improve agricultural productivity. This includes exemptions on essential food products during lean seasons or crises.

Special Economic Zones (SEZs)

• Companies in SEZs can benefit from reduced corporate taxes (25%) for seven years.

Small and Medium-Sized Enterprises (SMEs)

• SMEs are eligible for specific fiscal advantages. Details regarding these advantages and the official definition of SMEs in Mali are not provided in the current sources.

Application Procedures

Specific application procedures for each incentive are not available in the provided sources. It is recommended to contact API-Mali (Mali's Investment Promotion Agency) or consult with a legal expert specializing in Malian investment law for detailed guidance on the application process, eligibility criteria, and the most up-to-date information on available incentives. Tax laws and regulations can change frequently, so verifying the latest information is essential.

Additional Considerations

Mali is a member of the West African Economic and Monetary Union (WAEMU), which influences its tax policies and regulations. Additionally, Mali has implemented business reforms to improve various aspects, including starting a business, access to credit, and insolvency resolution. However, some recent policy changes, especially those concerning the mining sector, have introduced uncertainties for foreign investors. Always consult up-to-date resources and legal expertise to navigate the Malian investment landscape effectively.