Employers are obligated to contribute to the Caisse Nationale de Sécurité Sociale (CNSS), providing social protection for employees. The rate is 16.9% of the employee's gross salary (capped at a monthly maximum of XOF 500,000). Social security contributions encompass old-age pensions, disability pensions, survivor benefits, work-related injury and illness benefits, family benefits, and maternity benefits.

Payroll Tax (Impôt Professionnel sur les Traitements et Salaires - IPTS)

Employers must withhold and remit the Payroll Tax (IPTS) on employee salaries and wages. Progressive tax rates apply, ranging from 0% to 35% based on the employee's taxable income. IPTS must be paid monthly, by the 15th of the following month.

Employer Apprenticeship Tax (Taxe d'Apprentissage)

Employers with at least 20 employees are subject to the Apprenticeship Tax to support vocational training. The rate is 2% of the total payroll. This tax is generally paid annually.

Additional Employer Taxes

Employers may be required to contribute to pension funds on behalf of employees. Contribution rates can vary. Depending on the nature of the business, employers might be subject to additional taxes.

Important Notes

Tax regulations in Niger can be subject to change. Employers are strongly advised to consult with the Nigerien tax authorities or a qualified tax advisor for the most up-to-date and accurate information for their specific business operations.

Employees in Niger are subject to a progressive income tax on their salaries and wages known as IPTS. IPTS applies to all individuals earning employment income from employers in Niger. To calculate IPTS, determine the employee's taxable income (gross salary minus allowable deductions) then apply the corresponding tax rate based on Niger's tax brackets.

Social Security Contributions (CNSS)

Employees are also required to contribute to Niger's social security scheme managed by the Caisse Nationale de Sécurité Sociale (CNSS). This applies to all employees in Niger covered under the social security regime. The employee contribution rate is 5.25% of their gross salary.

National Housing Fund (NHF)

Employees earning the national minimum wage or above must make contributions to the National Housing Fund. This applies to employees in both the public and private sectors who meet the minimum wage criteria. The employee contribution is 2.5% of their basic monthly salary.

Important Considerations

Niger does allow for certain deductions to reduce an employee's taxable income prior to calculating IPTS. Examples may include life insurance premiums, pension contributions, and in some cases, mortgage interest. Tax obligations may vary based on residency status and other factors.

The standard VAT rate in Niger is 19% on most services and goods. However, certain services are exempt from VAT in Niger. These include financial services, healthcare services, educational services, and the export of services.

Exemptions

Certain services qualify for VAT exemptions in Niger. These include:

• Financial services
• Healthcare services
• Educational services
• Export of services

Reduced Rates

Some services and products qualify for reduced VAT rates. These include:

• Housing and foods activities of hotels (5%)
• Certain products (e.g., sugar, edible oil, cattle feed) (5%)
• Land transport of people and goods (10%)

VAT Filing Procedures

Businesses providing taxable services must register for VAT if their annual turnover exceeds XOF 100,000,000. VAT returns must be filed monthly, due by the 21st of the following month. VAT payments due must also be made by the 21st of the following month.

Important Notes

The rules, rates, and procedures related to VAT can change. Businesses providing services are advised to consult with the Nigerien tax authorities or a qualified tax advisor for the most accurate and up-to-date information.

Niger's government offers a range of tax incentives to stimulate economic growth and attract investment. These incentives can significantly lower a company's tax burden, making Niger an appealing location for business operations.

Tax Holidays

Niger uses Pioneer Status to provide tax holidays to companies operating in strategic sectors.

• Types:
  • Full tax exemption on corporate income tax (CIT) for an initial period of three years.
  • Possible extension for an additional two years based on meeting specific criteria.
• Qualification Criteria: Businesses applying for Pioneer Status must be involved in activities considered priorities for national development. These may include:
  • Manufacturing
  • Agriculture
  • Mining
  • Tourism
  • Renewable energy
  • Infrastructure development
• Application Process:
  Reach out to the Ministry of Industry or the relevant investment promotion agency for details and application forms.

Import Duty Exemptions

Niger provides import duty and value-added tax (VAT) exemptions on specific goods imported for investment purposes.

• Types:
  • Exemption from import duties and VAT on essential machinery, equipment, and raw materials needed for production.
• Qualification Criteria:
  Companies operating in designated priority sectors, similar to those for Pioneer Status, are typically eligible.
• Application Process: Contact the Niger Customs Department for details on the application process and required documentation.

Additional Considerations

While tax incentives are attractive, it's important to consider other factors when investing in Niger, such as:

• Political and economic stability
• Availability of skilled labor
• Infrastructure development