Mali provides a number of incentives based on the investment amount and business sector. The following outlines the main incentives:

The Investment Code

Mali's main incentives are set out under the Investment Code, which provides incentives based on different groups. These include:

Regime A

Regime A applies to companies investing between 12.5 million and 250 million CFA francs. During setup the following incentives are provided:

Corporate income tax reduction to 25% for 7 years
Exemption from VAT and withholding tax for the first 3 years applicable to:
- Technical and service fees paid to non-residents
- Services and goods purchased in Mali for the project
Exemption from customs duty on imported machinery and equipment for the project for the first 3 years
Exemption from the minimum flat tax for the first 5 years

For the expansion of existing activity, the following tax incentives are granted for 2 years:

Exemption from customs duty on imported machinery and equipment for the project
Exemption from VAT and withholding tax for the first 3 years applicable to:
- Technical and service fees
- Services and goods purchased in Mali for the project

Regime B

Regime B applies to companies investing between 250 million and 1 billion CFA francs. During setup the following incentives are provided:

Corporate income tax reduction to 25% for 10 years
Exemption from VAT and withholding tax for the first 3 years applicable to:
- Technical and service fees paid to non-residents
- Services and goods purchased in Mali for the project
Exemption from customs duty on imported machinery and equipment for the project for the first 3 years
Exemption from the minimum flat tax for the first 8 years

For the expansion of existing activity, the following tax incentives are the same as Regime A.

Regime C

Regime C applies to companies investing at least 1 Billion CFA francs. During setup the following incentives are provided:

Corporate income tax reduction to 25% for 15 years
Exemption from VAT and withholding tax for the first 3 years applicable to:
- Technical and service fees paid to non-residents
- Services and goods purchased in Mali for the project
Exemption from customs duty on imported machinery and equipment for the project for the first 3 years
Exemption from the minimum flat tax for the first 10 years

For the expansion of existing activity, the following tax incentives are the same as Regime A.

Regime D

Regime D applies to export-oriented companies investing at least 12.5 million CFA francs. The following incentives are provided for the first 30 years of business:

Exemption from customs duty on imported machinery and equipment for the project
Exemption from all taxes and duties in Mali except the following:
- VAT on transactions carried out in Mali
- Employment income tax
- Payroll taxes

Export companies can enjoy these incentives and also sell up to 20% of their products in Mali. Note, however, that products sold in Mali will be subject to taxes and duties as if imported.

The Encouragement of Technological Innovation

Companies eligible for this regime can enjoy a corporate income tax reduction of 25% for 2 years in additional to the A, B and C regimes covered above. To qualify, a company must either:

Invest at least 5% of their annual revenue in research, or carry out research themselves
The investment project exploits the research results of research conducted by a third party in Mali

Industrial Zones

Companies established in Mali's industrial zones may be eligible for an extension of the corporate income tax reduction of 25% for an additional year.

The Encouragement of the Use of Local Materials

Mali encourages the use of local materials by providing a reduced corporate income tax rate of 25% for 3 years for business that use at least 60% locally sourced materials as inputs for their activities.

Free Trade Zones and Export Processing Zones

Companies established in Mali's free trade zones or export processing zones can enjoy the following incentives for the first 10 years of operation.

Exemption from customs duty on imported machinery and equipment for the project
Exemption from VAT and withholding tax applicable to:
- Technical and service fees paid to non-residents
- Services and goods purchased in Mali for the project
Exemption from corporate income tax and tax on industrial and commercial profits
Exemption from employment income tax
Exemption from payroll taxes

Hydrocarbons and Mining Activities Regime

Mali provides a number of incentives for hydrocarbon and mining projects.

Benefits for hydrocarbon projects include:

Exemption from customs duties and all other taxes except the community contribution and the solidarity community contribution
Exemption from customs duties and other taxes levied on imports for all equipment and machinery required for research and exploitation of hydrocarbon
VAT exemption

Benefits for mining projects include:

Corporate income tax reduction to 25% for 15 years
Exemption from customs duties and other taxes levied on exports
VAT exemption
Employment income tax exemption
Payroll taxes exemption
Exemption on stamp duties

Subcontractors rendering services to companies holding mining rights are entitled to the same tax and customs incentives.

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