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Senegal – Transfer Pricing (2025)

Senegal’s transfer pricing framework is anchored in the Code Général des impôts du Sénégal, notably Article 17 which explicitly refers to the Arm’s Length Principle in paragraph 1. Article 17 also contains definitions and presumptions regarding dependence and control between enterprises (paragraphs 3 and 4), establishing for instance that links of dependence or control are deemed to exist where one enterprise holds directly or through an intermediary the majority of the share capital of another or in fact exercises the power of decision, and where two enterprises are placed under the control of the same enterprise in the conditions defined in paragraph a). Article 17 further provides that the condition of dependence or control is not required when the transfer occurs with enterprises established in a foreign State or in a territory outside Senegal with a privileged tax regime, or in an uncooperative country as defined in Article 18. Other relevant provisions referred to in the profile include Articles 638-639 and Articles 31 bis / 31 ter concerning documentation and country-by-country filing obligations, and Article 667 (paragraph III-b) which sets out transfer pricing documentation penalties.

Arm’s Length Principle and role of the OECD Guidelines

Domestic law in Senegal is based on and refers to the OECD Transfer Pricing Guidelines. The OECD Guidelines are explicitly recognised as a primary reference for applying the Arm’s Length Principle and for interpreting appropriate methods and comparability analysis. The draft Instruction on transfer pricing, currently in the process of being signed, repeatedly references the relevant portions of the OECD Guidelines for selection of the most appropriate method and for the comparability analysis.

The concept of related parties is provided in the Code Général des impôts du Sénégal, Article 17. Article 17 clarifies that the condition of dependence or control described in paragraph 1 is not required in certain cross-border situations (paragraph 3), and that links of dependence or control are deemed to exist as described above (paragraph 4, a) and b)). The profile does not introduce further detailed statutory rules on kinship or numerical thresholds beyond the presumption of control by majority shareholding. Regarding permanent establishments (PEs), the profile does not provide detailed domestic guidance beyond the general references to the Code Général des impôts and applicable tax treaties; therefore, no specific domestic guidance on PE characterization is provided in the country profile.

Methods and application criteria (hierarchy if any)

Senegal’s domestic framework provides for the use of standard transfer pricing methods. The profile indicates that, according to the draft Instruction on transfer pricing currently being signed, the permitted methods include the comparable uncontrolled price (CUP), the resale price method, the cost plus method, the transactional net margin method (TNMM) and the profit split method. These methods are defined in the draft Instruction. Selection of the method is based on the criterion of the “most appropriate method” rather than a strict hierarchy, with the choice to be made in light of the characteristics of the controlled transaction and the comparability analysis consistent with the OECD Guidelines.

Comparability and ranges (preference for comparables, adjustments, ranges)

Senegal largely follows the comparability analysis guidance in Chapter III of the OECD Guidelines, and the ongoing Instruction on transfer pricing develops these rules for practical application. The jurisdiction shows a preference for domestic comparables: when available, domestic comparables better illustrate the relevance of the comparability analysis because of their direct and close link to the controlled transaction. The tax administration does not use secret comparables. Legislation allows or requires the use of an arm’s length range and/or statistical measures for determining arm’s length remuneration, and comparability adjustments are required under domestic rules. The profile does not provide numerical tables or precise quantitative thresholds for range construction or statistical measures; those technical details are left to the draft Instruction and the OECD Guidelines.

Documentation and reporting (Master, Local, CbC, thresholds, language, timing, forms)

Senegal requires transfer pricing documentation. The Code Général des impôts du Sénégal mandates a Master file consistent with Annex I to Chapter V of the OECD Guidelines, a Local file consistent with Annex II, and a Country-by-Country (CbC) report consistent with Annex III. A specific transfer pricing declaration must be filed concurrently with the profit and loss declaration. The legal person targeted in Article 638(1) must file, at the same time as the profit declaration provided for in Article 30, a declaration containing both general information on the group of related enterprises (Master file) and specific information on the declaring entity (Local file). The CbC report must be filed electronically within twelve months of the end of the financial year by legal persons established in Senegal that meet the following conditions: a) prepare consolidated accounts; b) directly or indirectly own or control one or more entities established outside Senegal or have branches there; c) have an annual consolidated turnover, excluding taxes, of at least XOF 491 000 000 000 during the financial year preceding the reporting period; d) are not owned by one or more legal entities located in Senegal required to file the same report, nor established outside Senegal and required by foreign regulation to file a similar report (Code Général des impôts du Sénégal: Art.31 bis and Art.31 ter). The profile does not specify the language required for documentation, nor does it provide standardized forms; therefore, no specific domestic guidance on language of submission or form templates is provided in the profile. Master and Local files are to be submitted together with the Article 30 profit declaration.

Safe harbours / exemptions / materiality

Senegal does not have general statutory safe harbour regimes for specific industries or taxpayer categories. However, the draft Instruction envisages a simplified approach for low value-adding intra-group services: a margin of 5% is provided for low value-adding intra-group services, subject to ad hoc documentation requirements. No other simplification measures or sector-specific protection regimes are listed in the profile.

APAs and MAP; procedures and timing where specified

Senegal offers Advance Pricing Agreements (APAs) as a dispute prevention instrument, available in unilateral, bilateral and multilateral forms, and also provides Mutual Agreement Procedures (MAP). The profile refers to the Instruction on transfer pricing for a specific section on APAs (Section 2) and to Senegal’s OECD MAP Profile for more details. The country profile does not supply precise administrative timelines, fees or step-by-step procedural deadlines for APA or MAP processing; accordingly, no specific domestic guidance on processing times is provided in the profile.

Penalties and other considerations (secondary adjustments, re-characterisation, year-end adjustments, PEs)

Specific transfer pricing documentation penalties are established under the Code Général des impôts du Sénégal: Article 667 (III)(b) provides for penalties related to transfer pricing documentation. Senegalese law does not provide compliance incentives for transfer pricing documentation. Secondary (correlative) adjustments are recognised, but the profile clarifies that a correlative adjustment is only possible in application of the provisions of tax treaties in force (see Article 9); thus, correlative adjustments depend on treaty provisions and cooperative procedures. Senegal does not allow or require taxpayers to make year-end adjustments (the profile records a negative response for year-end adjustments by taxpayers). Concerning the attribution of profits to permanent establishments, Senegal does not follow the Authorised OECD Approach (AOA); instead, Senegal follows the approach contained in Article 7 of the United Nations Model Convention. The profile also notes that 18 tax conventions are relevant in this context.

Conclusion

Senegal has an emerging and OECD-referenced transfer pricing framework, with explicit legal grounding in Article 17 of the Code Général des impôts and further procedural and documentation obligations established in Articles 638-639 and 31 bis / 31 ter. The draft Instruction on transfer pricing, currently in the process of being signed, will clarify application of the accepted methods (CUP, resale price, cost plus, TNMM, profit split), comparability analysis and the treatment of intra-group services, including a simplified 5% margin for low value-adding services subject to documentation. Master file, Local file and CbC reporting are mandatory for qualifying groups with a CbC threshold of XOF 491 000 000 000, penalties for documentation deficiencies are in place under Article 667(III)(b), and APAs and MAPs are available. The profile lacks specific domestic guidance on intangibles and hard-to-value intangibles, on language and form templates for documentation, and on precise timing for APAs and MAPs; these aspects are either absent from the profile or delegated to the forthcoming Instruction and the OECD Guidelines.

References

For more information and access to the OECD country profile for Senegal, see https://www.oecd.org/en/topics/sub-issues/transfer-pricing/transfer-pricing-country-profiles.html

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