TAXATION OF COMPANIES IN MALI

Mali
Investment framework
Direct investments
Business taxation
THE TAXATION OF BUSINESSES

Mali is a member of the West African Economic and Monetary Union.

African (UEMOA) and the Economic Community of West African States
West Africa (ECOWAS). All these institutions aim to
objective of creating a unified space, similar to the European Union.

The Organization for the Harmonization of Business Law in Africa

(OHADA), which groups together 16 African countries, is responsible for enacting a
harmonized commercial law, or even unified. Since 1998, the Code of
Malian commerce is partly replaced by the rules of OHADA,
and a new accounting system, the SYSCOA (Accounting System
West African) came into effect.

It is important to note the supremacy of OHADA rules by

regard to national regulations. However, in the absence of
measures taken by OHADA, it is the national commercial code
which applies.
In order to harmonize the texts in accordance with the UEMOA rules,
Malian authorities have reviewed the General Code of
Taxes (CGI). Thus, in August 2005, the National Assembly...
adopted the bill amending the General Code of
Taxes. The main innovations of this tax reform are:
the establishment of a withholding tax on income paid to
foreign and local service providers, not registered for tax purposes
the establishment of a simplified tax regime applicable to
companies with an annual turnover between 30 and 100
millions of Fcfa
the exclusion of new products from the list of exempt products
VAT: fuels, lubricants...
the introduction of new products in the list of exempt products
of VAT: computer equipment
Mali has concluded agreements with certain countries (Algeria, France, Russia and
Tunisia) tax treaties to avoid double taxation.

The different types of taxes and the taxation procedures

are described in the 'GENERAL TAX CODE BOOK OF
TAX PROCEDURES » who is on its 4ththedition. It is
available at the General Directorate of Taxes.

1 - THE DIFFERENT FORMS OF COMPANIES IN MALI:

Conditions for the establishment in Mali of legal entities or

physiques
Any individual or legal entity, Malian or foreign, can
acquire or create a company in Mali; whether it is industrial,
commercial or financial, without any discrimination or
restriction of nationality, gender, or religion.

Malian legislation does not require the foreign investor to associate with
his business the Malian state (except in mining and oil matters)
or a Malian legal or natural person.
To carry out the formalities of business creation, there are
public organizations responsible for assisting individuals:
Single window for business creation of the Agency for the
Promotion of Investments in Mali (API-Mali): for companies
of an industrial nature. It is authorized to receive application files
of business creation as well as applications for approval to the code
Investments.
The Business Formalities Center (CFE) of the Chamber of
The Chamber of Commerce and Industry of Mali is the equivalent of the One-Stop Shop.
for exclusively commercial companies
The Single Window of the National Directorate of Commerce and
Concurrence (DNCC) responsible for issuing permits
import-export.
These formalities can also be completed by consultants.
tax advisors, lawyers or notaries.
All questions relating to companies (merger, demerger,
dissolution, liquidation) are provided for by the OHADA Uniform Act
on commercial companies and the GIE and the General Tax Code.
Commercial courts are competent to resolve disputes.
related to these questions. The parties have the option to resort to
arbitration (Mali Center for Conciliation and Arbitration (CECAM) at
the Chamber of Commerce and Industry, arbitral court of OHADA
…).

Typology of commercial companies:

In Mali, civil societies and commercial companies are distinguished.

Civil societies group together liberal professions, companies

real estate and agricultural production companies.

Commercial companies are legal entities whose purpose

is the usual accomplishment of commercial acts. They can
to be constituted in the form of a public limited company, of a company with
limited liability, general partnership, de facto company, of
simple partnership company, partnership company.

2 - TAX LAW AND COMPANIES:

Domestic Taxation
Taxation in Mali includes two types of taxes: direct taxes
and indirect.
In addition to these two types of taxes, there are registration fees and
stamps. There is a door tax related to duties and taxes
applicable to the importation of goods and equipment.

Direct taxes:
They concern commercial companies, service providers, and enterprises.
industrial.
The main direct taxes are:
Rate in
Observations
%
Income tax
the tax on salaries and At the employee's expense and
From 0 to 40
salaries (ITS) withheld by the employer
the tax on agricultural profit
10
(IBA)
the tax on real estate income Buildings in banco
(IRF) 15 Solid buildings
the income tax on earnings from 13 to 15
Can vary between 9 and 13% in
function of the nature of the
securities (IRVM)
securities.
the profit tax
Individual operators or
industrial and commercial 35
in collective name
(IBIC)
Capital companies (SA and
corporate tax (IS) 35
LLC
0.75
Minimum flat tax In case of a deficit and such that
of the number
International Monetary Fund IBIC ³ 1,200,000 Fcfa
business
35% for capital gains at
Capital gains tax on
35 short term
cessions made by the
25 25% for capital gains at
individuals
long term
Single rate of 3.5% of
annual turnover. The
Tax synthetic I. operators whose turnover
3
Synthetic business excluding VAT is
less than or equal to 30
millions
The Contribution of Patents
is composed of a fixed fee,
of a proportional right,
Contribution of patents and Rate
a contribution in favor of
licenses (CPL) variable
the Chamber of Commerce and
of the Industry of Mali and of a
road tax
Development Tax Rate Tax due for the year
Regional and Local (TDRL) integer variable by all the
 according to the elderly over
regions 14 years old, residing in Mali.
Fixed rate
of 50
Livestock Tax (LT) 100, 250,
300 and 800
CFA franc
Taxes similar to direct taxes
3.5% of the
Flat-rate contribution to the
mass
employer's contribution (CFE)
salary
Tax of training2% of the
professional (TFP) or tax mass the IBIC or the IBA
of learning salary
1% of the
Housing tax mass All employer.
salary
7,000 to
Tax on vehicles Depending on the number of
75,000
automobiles horses
CFA franc
88,000 at
Depending on the number of
Road transport tax 414,000
places
Fcfa
Tax on bicycles 500 Fcfa
From 625 to
Tax on firearms
7500 Fcfa

For taxpayers (national or foreign) not registered

a withholding is applied by the Tax Administration
at the source of 17.5% carried out by the beneficiary of the service, as
IBIC on the amount of remuneration excluding VAT that is paid to them

Indirect taxes:
Indirect taxes are:
Taux (%) Observations
She is recoverable according to the
VAT 18
principle of allocation
 Applicable to operations
Tax on activities which are related to activities
17
financial (TAF) banks, in the commerce of
money and values
Mining products
3 Products and equipment of
Special tax on certain agriculture
products (ISCP) (equivalent10 Sodas and
on excise rights 20 rolling stock
50 -Cola and tobacco
Salt and alcoholic beverages
Domestic tax on the Rate set by decree of
petroleum products (TIPP) Minister responsible for Finance.
Tax on contracts
4 and 20
insurance
500 FCFA
Solidarity Contribution
à
on the plane tickets
7000 CFA
Other tax contributions
The registration rights
For this category of taxes, there are three rates:
A fixed rate of 6,000 Fcfa for training acts,
of merger, extension or dissolution of companies;
A proportional rate: between 5 and 20% on real estate transfers
;
A progressive rate determined based on the nature of the act and
the object that is being transferred.

Stamp duties
These rights apply to documents established within the framework of official acts.
civil and judicial. The rate is progressive and varies depending on the
amount paid.

Source :; [Link]

USEFUL CONTACTS :
Directorate General of Taxes
B.P. : 776 - Bamako
Tél. : (+223) 20 29 99 18/25 29

National Directorate of Trade and

Concurrence
B.P. : 201 - Bamako
Tél. :(223) 20 21 49 28 / 221 23 14
Fax : (223) 221 80 46

Order of Chartered Accountants and Experts

Certified Accountants (OCAECA)
Private Sector Center - ACI 2000
B.P. : E113 - Bamako
Tél. : (223) 20 29 70 07
Fax : (223) 229 70 06

Order of Tax Advisors of Mali (OTAM)

Private Sector Center – ACI 2000
B.P. : E 2344 - Bamako
Tél : (223) 20 21 44 69
Fax : (223) 20 21 42 71
Email : fiscalité@[Link]

Chamber of Notaries
B.P. : E 422 - Bamako
Tél. : (223) 20 22 83 76
Fax : (223) 20 22 36 72
Email : etudekanda@[Link]

Bar Association
Court of Justice of Commune III
B.P. : E 2231 - Bamako
Tel.: (223) 20 20 81 02
Fax : (223) 220 96 17
Chamber of Commerce and Industry of Mali
(CCIM):
BP. 46 – Bamako
Tél. :(223) 20 22 50 36 / 20 22 96 45
Fax : (223) 222 21 20

Summary sheet of applicable taxes in Mali

Malian taxation, based for more than thirty years on the
ordinances No. 6-CMLN of February 27, 1970 and No. 2-CMLN of 16
January 1973 was the subject of a major reform by two laws of
December 29, 2006 adopting:
- of a new General Tax Code (law n°06-067/AN);
- from the Book of tax procedures (law n°06-068/AN).
These two texts are completed and modified by:
- laws no. 2010-14 and 2010-15 of May 31, 2010 (amendment
of the General Tax Code and the Book of Tax Procedures;
- from law no. 2011-36 of July 15, 2011 determining the
tax resources of municipalities, districts, and regions;
- of Law No. 2011-78 of December 23, 2011, concerning the adoption of
state budget for the 2012 fiscal year (finance law
for 2012).

Table 1: Corporate Tax and Profit Tax

Industrial and Commercial (IS-IBIC)
Corporate Tax and Profit Tax
Industrial and Commercial (IS-IBIC)

Commercial, industrial, artisanal professions

liberal professions of holders of positions and offices and of all
profitable activities
People Remunerations allocated in the form of fees to
taxable any person engaging in a professional activity,
even incidentally outside of a company,
design office, or regularly registered firm
with the tax administration
 The profits of foreign companies made in
Mali are taxable subject to the provisions of
international conventions ratified by the state.
Legal entities are taxed on the basis of
corporate tax
individuals for income tax
industrial and commercial profits

Consumer cooperative societies that

only group orders from their members
and to distribute in their warehouses the goods,
products or goods that have been the subject of these
orders;
The offices of economic housing;
The mutual agricultural credit funds governed by the
texts in force on the subject;
The provident societies, cooperative societies
agricultural, general interest agricultural associations,
mutual insurance and reinsurance companies
agricultural;
The mutual aid societies;
Non-profit public establishments of
Exemption
the State or decentralized communities;
and Exemption
Local authorities, the unions of municipalities
as well as their public service management for non-profit purposes
lucrative
The chambers of commerce, industry, and craftsmanship,
of agriculture and trades when they do not engage
to commercial activities;
Non-profit associations and organizations
legally constituted and whose management is disinterested
;
Investment companies with fixed capital and
variable for the part of the profits coming from the
net products from their portfolio or capital gains
that they make on the sale of securities or shares
socials that are part of this portfolio.
Rate 30%
Payments made by taxpayers subject to
competent tax center. However, the procedures
the specifics of these deposits may vary according to the amount
of the taxpayer. Indeed, taxpayers
having a turnover of less than 100 million
Francs can opt for the simplified actual regime.
Under this regime, the taxpayer makes three advance payments in
Perception of more of its final contribution produced at the end of the year
the tax tax. This installment is equivalent to 0.20% of the amount
business done the previous year for the stations
of essence sourcing from the local market and 0.60%
for all other companies. These contributions are
paid no later than March 31, July 31, and November 30
each year. For new companies subject to
under the simplified regime, the installments are calculated on the
basis of the projected turnover

Synthetic tax

The synthetic tax is due by operators.

People
individuals of companies generating revenue
taxable
annual of up to 30 million francs.
- Import and export companies;
- Individuals subject to the actual regime;
- People operating multiple establishments
Exclusions;
- The holders of charges and offices and certain
professionals (lawyers, accountants).

The value of the tax varies depending on the activity,

the profession of the taxpayer and the conditions in
Rate
which it is exercised
Prices range from 14,700 to 1,200,000 CFA francs.
Table 2: Synthetic Tax

Tax on wages and salaries (ITS)

The sums paid during the year to employees by the
public and private employers:
People employment income, commissions, bonuses, the
Activities tips and all other allowances or emoluments
taxable receipts as employment income.
pensions and life annuities and remuneration by
allocated shares to company executives.
- taxpayers governed by agreements
international, bilateral or multilateral
- Family and assistance allowances
family.
- The balance increases for family charges
(if they are granted to all employees of a
Exemption and
company).
exemption
- The pensions of veterans.
Life annuities and temporary allowances to
victims of workplace accidents.
- Severance or departure indemnities
retirement.

In addition, employees benefit from a discount of

the tax for family expenses. These reductions vary
according to the civil status and the number of children. Thus, one or
a married employee without dependent children is entitled to
a 10% reduction. Each dependent child gives
also entitled to a 2.5% reduction per child, up to
Reduction
10 inclus and a major but disabled child gives rights.
to a reduction of 10%. Are considered as
dependent children, children who, while not having
revenus, ont moins de 18 ans, ceux ayant plus de 18 ans
and under 25 years are in military service or
poursuivent des études.
Retention perceived directly at the source monthly by
the employer tax.
Calculation of tax

The tax is calculated from January 1st of the tax year according to
the following scale:

Table 1: Annual tax scale of the ITS

Income brackets (FCFA) Rate
Of à
0 175,000 0%
175,001 600,000 5%
600 001 1,200,000 13%
1 200 001 1 800 000 20%
one million eight hundred thousand one 2,400,000 at 28%
2,400,001 3,500,000 34%
More than 3,500,000 40%
Table 3: Income Tax on Wages and Salaries (ITS)

Table 4: Value Added Tax (VAT)

Value Added Tax (VAT)
Natural or legal persons including those
of the economic public sector, which carry out a
independently, habitually or occasionally,
operations subject to value added tax
regardless of their legal status, their situation in
concerning other taxes and the form or nature of their
intervention; and this when they achieve a figure
business sales excluding tax exceeding 30 million Francs
People /
CFA
Activities
taxable
VAT applies to the values of all deliveries of
goods and services from the stage of production to that of
consumption. Its scope of application includes 5
main axes:
1. The delivery of goods
2. Service provisions
3. Deliveries made to oneself by a taxable person
4. Imports
 5. The activities of product processing
agriculture, livestock farming, and fishing.
The exemptions and exclusions that apply to the
VAT can be classified into four groups:

- Sales and related operations:

- Service provision:
Other activities and services subject to a tax
specific:

Particular products:
This is a list of products listed in the code.
Exemption and
each having a specific number ranging from
exemption
others: certain basic products as well as the
medications.
However, law n°2011-078 of December 23, 2011 has made
a reorganization of Article 195 of the CGI by establishing a
reduced rate of 5% on certain products, sales and
services that were exempt from VAT.
These include among others:
Agricultural equipment;
The computer equipment;

The VAT rate is:

- 5%
Rate of
- 18% for other products and services not
the tax
exempt

The perception of VAT varies according to the type of scheme.

to which the taxpayer is subjected at the level of tax
on companies and on industrial profits
commercial
Perception of
Taxpayers subject to the simplified real regime,
the tax
revenue between 30 million and 100 million
francs) pay the VAT in the form of monthly installments
calculated based on revenue, with a rate
variant depending on whether the matter is a property, a movable or
 a service. They must, at the latest by May 15,
the year following the closure of the accounting period,
produce an annual summary declaration of
the set of operations carried out during the year
elapsed.
Taxpayers under the normal actual regime must
deposit monthly no later than the 15th a
declaration whose content is the entirety of the
operations of the previous month.

Table 5: Tax on road transport

Road transport tax

The road transport tax (TTR) targets the
public transport operators providing a commercial service of
road transport and whose vehicles are
People /
registered in Mali. The tax has the particularity of
Activities
free the road carrier from certain obligations
taxable
taxes, either the contribution of patents, the contribution
at the Chamber of Commerce and Industry of Mali as well
that the tax on automobiles.
Exemption and
No exemption
exemption

Tax rate
Tables 3 and 4 contain the tax amounts

Table 3: TTR rates for vehicles assigned to transport

of individuals (CFA francs)
Vehicle age
Vehicle capacity
10 years and younger More than 10 years
16 people or less 128,000 88,000
Between 17 and 35 people 168,000 116,000
Between 36 and 45 people 253,000 174,800
46 people or more 326 600 230,000
Table 4: TTR Rate for Vehicles Assigned to Transport
of goods (CFA francs)
Vehicle capacity Vehicle age
10 years and under More than 10 years
188
10 tons or less 133 400
600
243
Between 10 and 15 tons 170 200
800
317
Between 15 and 24 tons 220,800
400
414
More than 24 tons 289,800
000

Table 6: The professional training tax

The professional training tax

People The professional training tax is owed by all.
Activities individuals and companies liable for tax on the
taxable industrial and commercial profits.
Three-year exemption for employers
hiring employees aged at least 40 years old and
holders of at least one professional diploma
Exemption and
delivered by a certified professional establishment.
exemption
Exemption of two years for employers
hiring workers who were laid off for
economic motive.
The professional training tax whose rate is
fixed at 2%, is based on the same calculation basis as the
Rate flat-rate contribution, it is calculated on the amount
the tax gross compensation, salaries, wages,
compensation paid to all staff including
the actual values of benefits in kind.

Table 7: The housing tax

 The housing tax
People /
The housing tax is collected from employers of
Activities
private and parastatal sector.
taxable
Exemption and
No exemption
exemption
The housing tax, with a rate set at 1% of the
payroll is calculated on the gross amount of
Rate of
remunerations, payments, salaries, allowances paid
the tax
to all of their staff by the employers of
private and parapublic sector.

Table 8: The youth employment tax

The youth employment tax

People /
The youth employment tax (TEJ) is levied on the
Activities
private sector and parapublic employers.
taxable
Three-year exemption for employers
hiring employees aged at least 40 years and
Exemption for holders of at least one professional diploma issued
exemption by an approved professional establishment. Exemption
for two years for employers hiring
workers who have been dismissed for economic reasons.
The youth employment tax is calculated on the gross amount.
remunerations, salaries, wages, allowances
Rate of
paid to all staff by the employers of
the tax
private and parapublic sector. The tax rate is
2%.
Table 9: The contribution of patents
The contribution of patents
All individuals, whether natural or legal, who
acting in Mali a trade, a profession, a
People /
industries not explicitly included in the
Activities
exemptions. The profession must be practiced in a way
imposables
effective and habitual, it must be exercised in a
but profitable, and finally it must be carried out in Mali.
 - the State, the local authorities and the
public organisms;
- legal entities benefiting from
the exemption from Corporate Tax and Tax
on Industrial and Commercial Profits;
Exemption and- those subject to the Synthetic Tax in respect of
exemption activities for which they are subject to this tax;
- les associés de société en non collectif, à
limited liability, in commandite or anonymous;
- cattle exporters under this only
activity

The patent consists of a fixed fee and a right

proportional based on the rental value of the premises
professionals.

fixed law

The amount of the fixed fee is given in the tariff of

patents. It depends on the nature of the profession
exercised, revenue, elements of
the operation and the place of exercise of the profession.
The fixed fee is owed by establishment and not by
Tax base profession.
and scale
of taxation b) Proportional law

In addition to the fixed fee, there is a proportional fee calculated

on the annual rental value of premises used for
the exercise of the profession (offices, shops,
boutiques, workshops, hangar) as well as on that of
fixed tools and installations of all kinds. The
The rental value is in principle the real value as of the 1st.
January of the tax year. The rate of duty
proportional is 10% of the rental value. It does not
may be less than a quarter (1/4) of the fixed fee.
 The patent fee is calculated by adding the fee
Tax rate
fixed at the proportional rate.
Any person who engages in an activity
business subject to the license must be held to
Perception of making the statement to the tax center in 10
the tax days following the start of the exercise of the activity.
The deadline for payment of the license fee is set for
April 30.

Table 10: The contribution of licenses

The contribution of licenses

Any natural or legal person engaged in the
wholesale or retail sale of alcoholic beverages or
People /
fermented either to be consumed on site or to take away,
Activities
is subject to a licensing fee for each
taxable
sales establishment, without discount for the
branches.

Anyone who undertakes an activity

commercial activity subject to licensing must carry it out
Perception of
the declaration to the tax office within 10 days which
the tax
following the start of the activity. The date
The payment deadline for the license is set for April 30.
Tax rate
The rate applicable to each class is set by the table below.
and also varies depending on the geographic location.

Tableau: License fee rates (CFA francs)

Other chefs
Others
Class Bamakolieux of
localities
region
First class: Bar, café-concert,
150,000 125,000 75,000
café-restaurant
2nd class: Cabarets, canteens 100 000 62 500 37,500
3rd class: Restaurants,
wholesalers and retailers 50,000 37,500 18,000
takeaway sales
4th grade: Businesses of
25,000 12,500 9,000
indigenous beverages (dolo, etc.)