Disclosure Requirements

Effective 1 January 2018, the annual transfer pricing return must be filed by 30 April of each year along with the corporate income tax return. The transfer pricing return generally contains transfer pricing information, including information on related parties and activities, transaction values, financing, the group transfer pricing policy, etc

Standard Documentation

Effective 1 January 2018, the tax authorities introduced the new transfer pricing regulation which complies with the BEPS Action 13 and requires taxpayers (meeting the below-mentioned thresholds) to prepare and maintain transfer pricing documentation on a contemporaneous basis. The regulation includes the three-tier documentation requirements developed as part of BEPS Action 13, including Master file, Local file, and Country-by-Country (CbC) reporting. The tax authorities released a detailed note explaining the content, which is generally based on the OECD guidelines.

The obligation of maintaining the annual transfer pricing documentation applies to any company meeting the following conditions:

Has a turnover of XOF 5 billion or more;
Holds at the end of the relevant fiscal year, whether directly or indirectly, 50% or more in the capital or voting rights of a resident or non-resident company with a turnover of XOF 5 billion or more; or
More than 50% of its capital or voting rights is held at the end of the fiscal year, whether directly or indirectly, by a company with a turnover of XOF 5 billion or more.

The documentation obligation does not apply to domestic transactions; however, taxpayers are required to follow the arm’s-length principle for domestic transactions as well.

The transfer pricing documentation must be made available to the tax auditor at the start of a tax audit. If the documentation is not available or is only partially available at that date, the tax authorities may order its presentation within 20 days. However, the taxpayer may request an extension of the said period by up to 25 days.

Master File

Master file requirements apply in Senegal from the reporting fiscal years beginning on or after 1 January 2018 and include the transfer pricing documentation prepared in accordance with BEPS Action 13.

Local File

Local file requirements apply in Senegal from the reporting fiscal years beginning on or after 1 January 2018 and include the transfer pricing documentation prepared in accordance with BEPS Action 13.

Country-by-Country (CbC) Reporting

Senegal introduced regulations for country-by-country reporting in 2018. The CbC reporting requirement applies to ultimate parent entities of MNE residents in Senegal with annual consolidated turnover exceeding XOF 491 billion and including companies held by foreign parents subject to CbC reporting requirements in a foreign jurisdiction. When required, the country-by-country report must be submitted within 12 months following the close of the reporting fiscal year.

Taxpayers that fulfill at least one of the following conditions need to file the CbC report:

The Senegalese tax-resident company has been elected by the multinational group to file a CbC report and has informed the Senegalese tax authorities;
The Senegalese tax-resident company fails to give evidence that another company of the multinational group (either based in Senegal or in a jurisdiction that has implemented a similar CbC requirement or in a jurisdiction that has concluded with Senegal a qualified exchange of information instrument) has been designated for purposes of filing the CbC report; or
The Senegalese jurisdiction has been notified regarding a systemic failure to exchange the information.

On 22 January 2024, Senegal issued Order No. 001697 establishing the content and format requirements for CbC reports, which are in line with the OECD guidelines. Although the CbC reporting requirements were introduced effective from 1 January 2018, it is assumed that actual submission of CbC reports is only required from 2024 since the Order establishing the content and format has only been issued in January 2024.

The CbC reports must be filed electronically using the form attached to the Order No. 001697. As per the OECD guidelines, the contents of the CbC report must include the following for each jurisdiction:

Table 1:

revenues (unrelated parties, related parties, and total);
profit (loss) before tax;
income tax paid (cash basis);
income tax accrued - current year;
stated capital;
accumulated earnings;
number of employees; and
tangible assets - other than cash and cash equivalents.

Table 2:

constituent entities resident in each tax jurisdiction (including Tax ID and address);
jurisdiction of organization or incorporation if different from jurisdiction of residence; and
main business activities of each constituent entity.

Table 3:

additional information or explanation deemed necessary to understand the CbC report.

Language of Documentation

No specific language is specified for the documentation. However, if the document is filed in English the tax authorities may request a translation to French. The transfer pricing return must be submitted in French.

Penalties

The following penalties apply:

Failure to submit or delay in filing the transfer pricing return attracts a fine of up to XOF 10 million;
Incomplete or inaccurate filing of the transfer pricing return attracts a fine of up to XOF 200,000 for each incomplete or inaccurate information, up to a maximum of XOF 1 million;
Failure to submit or the incomplete submission of transfer pricing documentation attracts a fine equal to 0.5% of the non-documented or improperly documented transactions; and
Failure to submit or a delay in filing of a CbC report attracts a fine of up to XOF 25 million.

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