Niger

In Niger, employers face various tax obligations, including payroll taxes, social security contributions, and an apprenticeship tax.

Payroll Taxes

• Social Security: Employers contribute 16.9% of employee salaries to the National Fund for Social Security (CNSS), covering old age, disability, and survivors' benefits.
• National Agency for the Promotion of Employment (ANPE): Employers contribute 1% of their total payroll to ANPE.

Apprenticeship Tax

• The apprenticeship tax (taxe d'apprentissage) applies to companies subject to business income tax.
• The rate is 3% of payments made to local employees and 5% for expatriate employees.

Employee Payroll Contributions

Employees contribute the following:

• Social Security: 5.25% of their salary towards CNSS.
• Income Tax: Progressive rates ranging from 1% to 35% based on income brackets. (See below)

Employee Income Tax Brackets

• Up to 25,000 CFA: 1%
• 25,001 to 50,000 CFA: 2%
• 50,001 to 100,000 CFA: 6%
• 100,001 to 150,000 CFA: 13%
• 150,001 to 300,000 CFA: 25%
• 300,001 to 400,000 CFA: 30%
• 400,001 to 700,000 CFA: 32%
• 700,001 to 1,000,000 CFA: 34%
• Over 1,000,000 CFA: 35%

Other Taxes in Niger

• Value Added Tax (VAT): A standard rate of 19% applies to most goods and services, with reduced rates of 5% and 10% for specific items.

Additional Information for Employers

• Minimum Wage: The minimum wage in Niger is 30,047 CFA per month.
• Standard Workweek: 40 hours, with exceptions for certain roles.
• Overtime: Overtime pay is calculated at 110% of the regular hourly rate for the first 8 hours and 135% thereafter.
• Annual Leave: Employees are entitled to 30 days of paid annual leave, increasing with length of service.
• Payroll Cycle: Typically monthly, though weekly and hourly cycles are also common.
• 13th Salary: There is no legal requirement for a 13th-month salary payment.

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

In Niger, employers deduct various taxes and contributions from employee salaries.

Employee Deductions

• Social Security (CNSS): 5.25% of the employee's salary is deducted for old age, disability, and survivors' benefits.

• Income Tax (PAYE): A progressive tax system is used. Rates range from 1% on income up to 25,000 CFA francs to 32% on income exceeding 400,000 CFA francs. As of February 5, 2025, the rates are as follows:

  • 1% (Up to 25,000 CFA)
  • 2% (25,001 - 50,000 CFA)
  • 6% (50,001 - 100,000 CFA)
  • 13% (100,001 - 150,000 CFA)
  • 25% (150,001- 300,000 CFA)
  • 30% (300,001- 400,000 CFA)
  • 32% (Above 400,000 CFA)

Employer Contributions/Deductions

• Employer Social Security Contribution: Employers also contribute to the CNSS.
• National Housing Fund (NHF): While previously mandatory, NHF contributions are now optional for private-sector employees. For those who choose to participate, the contribution is 2.5% of their monthly gross pay. Employers are responsible for remitting these funds.
• National Health Insurance Scheme (NHIS): In the public sector, 5% of the monthly basic salary is deducted for NHIS. Many private-sector employees receive this as a benefit, with no deduction from their salary.
• Pension: Employers contribute 10% of the employee's basic salary, housing allowance, and transport allowance to the chosen Pension Fund Administrator (PFA).
• Group Life Assurance: Employers must provide group life insurance coverage for their employees as mandated by the PENCOM Act 2014.
• Industrial Training Fund (ITF): 1% of the annual gross payroll is payable by the employer before March 31st of the following year.

Important Dates and Procedures

• PAYE Remittance: Employers must remit deducted PAYE tax to the relevant tax authority (SIRS or FIRS) within 10 days of the following month.
• Annual Tax Returns: Employers are required to file annual tax returns by January 31st each year.

General Information about Taxes in Niger

The tax system in Niger is administered by the Direction Générale des Impôts (DGI), which operates under the Ministry of Finance. The tax code encompasses various taxes, including those on income (personal and corporate), value-added tax (VAT), and excise duties. Revenues collected through these taxes finance government spending on public services, including healthcare, education, and infrastructure. The government is periodically reviewing its tax laws. Changes are sometimes implemented to adapt to the evolving economy, improve revenue collection, or address specific social and economic objectives. Therefore, it's crucial for employers and employees to remain current with changes to regulations and rates. This information is current as of February 5, 2025, and may be subject to change.

In Niger, the Value Added Tax (VAT) is a consumption tax applied to most goods and services.

VAT Rates

• Standard Rate: 19% applies to most goods and services.
• Reduced Rate: 5% applies to essential goods like sugar, edible oils, animal feed, and manufactured milk.

VAT Registration Threshold

Businesses with an annual turnover before tax equal to or exceeding XOF 50 million (approximately EUR 76,224.50) must register for VAT. Those below this threshold do not collect VAT and cannot deduct input VAT. A single tax identification number is used for all tax obligations in Niger.

Filing and Payment

As of January 1, 2025, digital services provided to consumers in Niger are subject to a 19% VAT. Non-resident providers must register via a simplified process but do not need a local fiscal representative. Returns are filed monthly, typically by the 10th of the following month. Late submissions incur penalties, starting at 20% of the due VAT and rising to 40% after two months.

Exempt Goods and Services

While a comprehensive list is subject to the exemptions list provided by the tax authorities, specific examples include certain basic food items. Banking activities are subject to a separate specific tax.

Additional Information

• VAT was introduced in Niger in 1986, replacing the production tax and the tax on services.
• All economic activities, including independent professionals, generally fall within the scope of VAT.
• The tax base for imported goods includes the customs valuation plus excise duties.
• Input VAT recovery is available for purchases directly attributable to taxable supplies, with some exceptions.
• Non-residents making taxable transactions must appoint a Niger-based representative accredited by the tax authority.

Note: This information is based on the available resources as of February 5, 2025, and may be subject to change due to legislative updates or further clarification from tax authorities. It is essential to consult official government sources or tax professionals for the most up-to-date details.

Nigeria offers a range of tax incentives to stimulate investment and economic growth, focusing on key sectors like agriculture, manufacturing, and oil and gas. As of February 5, 2025, these incentives may be subject to change, and it is advisable to consult the latest official sources for the most current details.

Free Trade Zones

• Benefits: Businesses in Free Trade Zones (FTZs) enjoy several incentives like full exemption from corporate income tax, withholding tax on dividends, and capital gains tax. They also experience reduced compliance costs by interacting with a single regulatory body (NEPZA).
• Eligibility: Businesses operating within designated FTZs are eligible.
• Application: Contact NEPZA for application procedures and requirements.

Pioneer Status Incentive (PSI)

• Benefits: Offers a tax holiday from Companies Income Tax (CIT) for an initial three years, extendable for two more. Companies can offset tax losses during the holiday against later profits and enjoy tax exemption on dividends from pioneer profits.
• Eligibility: Companies investing in specified industrial activities, including manufacturing and agriculture, may qualify.
• Application: Governed by the Industrial Development (Income Tax Relief) Act 2018, application procedures and criteria are available from relevant authorities.

Export Incentives

• Export Expansion Grant (EEG) Scheme: Provides Export Credit Certificates (ECCs) usable for paying federal taxes (VAT, WHT, CIT) and other government dues. The EEG rate varies (7.5% to 15%) based on the level of processing of exported goods.
• Eligibility: Exporters of Nigerian goods.
• Application: Details on the application process can be obtained from the Nigerian Export Promotion Council (NEPC).

Oil and Gas Incentives

• VAT Exemptions: Exemptions on diesel, feed gas, LPG, CNG, electric vehicles, LNG infrastructure, and clean cooking equipment.
• Deep Offshore Tax Reliefs: Specific reliefs for deep offshore oil and gas projects. Gas tax credits for non-associated gas greenfield developments, and gas utilization investment allowances for new and ongoing midstream projects are available.
• Eligibility: Companies involved in oil and gas exploration, production, and related activities.
• Application: Refer to the Ministry of Finance and relevant petroleum regulatory bodies for application guidelines.

Other Incentives

• Rural Location Incentives: While repealed in September 2023, incentives might be claimable for previous expenditures for companies located far from amenities.
• Tax Credits: Various tax credits exist, including withholding tax credits (rents, dividends, royalties) and foreign tax credits for Nigerian companies with international operations.
• Small and Medium Enterprises (SMEs): SMEs involved in primary agricultural production may qualify for tax-free periods, typically four years, extendable by two years based on performance.

General Notes

Nigeria's tax incentive landscape is constantly evolving. Always verify current regulations and specific requirements with the relevant government bodies, including the Federal Inland Revenue Service (FIRS) and the Nigerian Investment Promotion Council (NIPC). Professional tax advice is highly recommended.