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Mali

Country Name: Republic of Mali
Currency: West African CFA Franc (XOF)
Primary Tax Authority: Directorate General of Taxes (Direction Générale des Impôts, DGI)
Key Legislation:

  • General Tax Code
  • Value Added Tax (VAT) Law
  • Customs Code
  • Investment Code
  • Tax Procedures Law

Fiscal Authority Allocation

Centralized Fiscal System:
Mali operates a centralized tax system, with the Directorate General of Taxes (DGI) responsible for administering and collecting taxes, including corporate income tax (CIT), personal income tax (PIT), value-added tax (VAT), and customs duties.

Corporate Income Tax (CIT)

Standard Rate: 30%
Mali imposes a corporate income tax rate of 30% on resident companies and non-resident companies with a permanent establishment in the country.

Corporate Forms and Taxation:

  1. Resident Companies: Taxed on worldwide income.
  2. Non-Resident Companies: Taxed only on Mali-sourced income.

Exemptions and Incentives:

  • Investment Incentives: Mali’s Investment Code offers tax holidays, customs duty reductions, and VAT relief for companies investing in sectors such as agriculture, mining, infrastructure, and tourism.
  • Free Trade Zones: Companies operating in Mali’s free trade zones benefit from CIT reductions, customs duty exemptions, and VAT relief for up to 10 years.

Goods and Services Tax (GST) / Value-Added Tax (VAT)

Standard Rate: 18%
Mali imposes VAT at a standard rate of 18% on most goods and services. VAT applies to both domestic production and imports.

Exemptions:
Certain goods and services, such as healthcare, education, unprocessed agricultural products, and financial services, are VAT-exempt. Exports are zero-rated, allowing businesses to claim refunds on VAT paid on inputs used in producing export goods.

Personal Income Tax (PIT)

Progressive Rates:
Mali applies a progressive personal income tax system to residents’ worldwide income and non-residents’ Mali-sourced income.

Resident Tax Rates for 2023 (Annual Income):

  • Up to XOF 1,200,000: 3%
  • XOF 1,200,001 to XOF 2,500,000: 10%
  • XOF 2,500,001 to XOF 5,000,000: 15%
  • Above XOF 5,000,001: 30%

Non-Resident Tax Rate:
Non-residents are taxed at a flat rate of 30% on Mali-sourced income.

Deductions and Allowances:
Taxpayers may deduct social security contributions, pension contributions, and certain personal expenses, such as medical costs and charitable donations, from taxable income.

Additional Mandatory Contributions

Social Security Contributions:
Employers and employees must contribute to Mali’s social security system, which provides pensions, healthcare, and other social benefits.

  • Employer Contribution: 18% of gross salary.
  • Employee Contribution: 3.6% of gross salary.

Withholding Taxes

  • Dividends: 16% for residents, 16% for non-residents
  • Interest: 16% for residents, 16% for non-residents
  • Royalties: 18%
    Mali imposes withholding taxes on payments to non-residents, including dividends, interest, and royalties. These rates may be reduced under Mali’s double taxation agreements (DTAs).

Transfer Pricing Rules

Mali follows the arm’s-length principle for related-party transactions. Companies must ensure that cross-border transactions between related entities are conducted at market value. Transfer pricing documentation is required for large multinational companies engaged in significant related-party transactions.

Special Tax Regimes

  • Free Trade Zones: Companies operating in Mali’s free trade zones benefit from CIT holidays, VAT exemptions, and customs duty reductions for up to 10 years. These zones are intended to promote export-oriented industries and attract foreign direct investment.
  • Investment Incentives: Mali’s Investment Code provides tax holidays, reduced CIT rates, and customs duty exemptions for companies investing in sectors such as agriculture, renewable energy, mining, and tourism.

Other Taxes

  • Customs Duties: Mali, as a member of the West African Economic and Monetary Union (WAEMU), applies customs duties based on the WAEMU Common External Tariff. Rates range from 5% to 20%, depending on the type of goods. Essential goods and raw materials may qualify for reduced or zero customs duties.
  • Excise Taxes: Excise taxes are levied on alcohol, tobacco, petroleum products, and luxury goods.
  • Property Tax: Local authorities in Mali impose property taxes on land and buildings based on their assessed value.

Double Taxation Agreements (DTAs)

Mali has signed several double taxation agreements (DTAs) with countries such as France, Morocco, and members of WAEMU. These agreements help reduce withholding taxes on cross-border income and prevent the double taxation of income earned in Mali and other jurisdictions.

Local Taxes

Local governments in Mali may impose property taxes, business license fees, and local service levies. However, most major taxes, including CIT, PIT, and VAT, are centrally administered by the Directorate General of Taxes (DGI).

Compliance and Reporting

Annual Filing:
Corporate tax returns must be filed within three months following the end of the financial year. Personal income tax returns are generally due by March 31st. VAT returns are filed monthly or quarterly, depending on the size of the business.

Penalties for Late Filing:
Penalties for non-compliance or late filing include fines and interest on unpaid taxes. The DGI charges interest at 1.5% per month on overdue taxes, with additional penalties for tax evasion or underreporting.

Recent Developments

Mining Sector Expansion:
Mali’s mining sector, particularly gold mining, continues to attract significant foreign investment. The government offers tax incentives, including CIT holidays, VAT exemptions, and customs duty reductions on mining equipment, to encourage investment in this sector.

Infrastructure and Renewable Energy Development:
Mali is promoting investment in infrastructure and renewable energy projects, particularly solar and hydropower. Tax incentives such as CIT reductions, VAT exemptions, and customs duty reductions are available for companies investing in these sectors.

Digital Taxation Initiatives:
Mali is modernizing its tax administration through the introduction of electronic filing systems and digital tax platforms. These initiatives aim to improve tax compliance and streamline the tax reporting process for businesses.

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