To

go

GhanaIvory Coast

Burkina - Faso

Bé

nin

Nigeria

Niger

Mali

Atlantic Ocean

West Africa

TOGO EXPORT PROCESSING ZONE

PRESENTATION OF THE

TOGO EXPORT PROCESSING ZONE

The industrial free zone, henceforth governed

by the new law N° 2011-018 of 24 June 2011

governing the status of free industrial zone,

more attractive, aims at promoting the expansion of

export – oriented industrial activities and services in

Togo by guaranteeing companies operating under this

scheme the most conductive conditions.

Thus, the zone provides export-oriented industries,

service companies and agricultural activities with an

incentive investment climate while encouraging the

use of local manpower.

At its creation in 1989, the Togo Export Processing

Zone gained the determining support from

cooperation bodies such as the United Nations

Development Programme (UNDP), the United Nations

Industrial Development Organization (UNIDO), the

Overseas Private Investment Corporation (OPIC) and

the United States Agency for International

Development (USAID).

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T BO G O U S I N E S S H U B

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Av e n u e d e l a C h a n c eP. O . B o x : 3 2 5 0 L O M É - TO G O

T E L :

e-mail : sazof@zonefranchetogo.tg

Web site : www.zonefranchetogo.tg

T O G O F R E E Z O N E

CURRENCY AND CHANGE

TOGO as a member of the West African Economic

and Monetary Union (UEMOA), its currency, the CFA

Franc, is pegged with Euro at a fixed rate of

1 EURO = 655,957 F CFA.

Freedom to transfer funds is guaranteed in confor-

mity with UEMOA regulations.

I - CUSTOMS DUTIES AND TAXESExemption from all customs duties and taxes while

importing machinery equipment, raw materials, office

supplies, and while exporting goods manufactured within

the free zone as well.

50% reduction in the same duties and taxes on commercial

vehicles.

II - TAX BENEFITS 1- CORPORATE TAX - 0 % during the first 5 years;

th th - 8 % of the taxable profit from the 6 to the 10 year;th th - 10 % of the taxable profit from the 11 to the 20 year; st - 20 % of the taxable profit from the 21 year.

2- DIVIDENDS TAX INCOME MOVABLE CAPITAL

- 0 % during the first 5 years;th th - 50 % from the 6 to the 10 year;

th - Ordinary law shall apply as from the 11 year.

3- PAYROLL TAXReduced flat rate of 2% payroll tax for the lifetime of the

company.

4- BUSINESS LICENCE TAX - 0 % during the first 5 years;

th th - 5 % tax from the 6 to the 20 year;st - 15 % tax from the 21 year.

5- LAND TAX - 0 % during the first 5 years;

th th - 5 % tax from the 6 to the 20 year;st - 15 % tax from the 21 year.

OR TAX ON

LOCATION

The TOGO Export Processing Authority – SAZOF - has in Lomé

and in the interior of the country, sites where bare plots of

lands are let out on a long time basis (minimum 30 years) for

300 F CFA (0.45 €)/sqm/year.

Companies enjoying the export-processing zone status can

also set up freely everywhere in TOGO and enjoy the benefits

granted by the zone.

INTERNATIONAL AGREEMENTS

To be authorized to establish within the Export Processing

Zone or enjoy the Export Processing Zone Status,

companies must fulfil the following conditions :

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Carry out a processing or a service activity Guarantee export of their production of goods and

services Reserve permanent jobs for Togolese nationals on a

priority basis.

The promoter who meets these conditions must send an

application file for approval for the Export Processing Zone

Status to Togo Export Processing Zone Authority – SAZOF –

following a form which is obtainable at SAZOF.

The form can also be teleloaded from the web site :

www.zonefranchetogo.tg

CONDITIOINS OF ELIGIBILITY

BENEFITS

Togo signed several international agreements, among

which the most important are :

> UEMOA : (West African Economic and Monetary Union), over 60 million inhabitants.

> ECOWAS : (Economic Community of West Africa states) over 200 million consumers.

> MIGA : (Multilateral Investment Guarantee Agency).

> OHADA: (Harmonisation Business Law Organization in Africa).

> CIRDI : (International Centre for Investment disputes Settlement).

> APE : (Economic Partnership Agreement).

> OCI : (Islamic Conference Organization).

> OAPI : (African Patent Rights Organization).

> NEPAD : (New Partnership for African Development).

> AGOA : (African Growth and Opportunity Act).

DIVERSIFIED SECTORS

The typology of operational companies of the

Togo Export Processing Zone is very varied.

One can find inter alia :

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We can enumerate among others :

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Food industry and agri-industry, horticulture ;

Wood industry, metalic engineering industry,

and plastic industry ;

Clothing industry, synthetic hairs (hair pieces,

wigs), leathercraft (shoes) ;

Fishing and seafood processing ;

Pharmaceutic industry, cosmetic industry.

Several other potential sectors can be developed in

the export-processing zone.

The textile (spinning, weaving, manufacturing).

Light engineering products and electronics,

equipment assembling : vehicles, bicycles, audio

and video apparatus, computer hardware, etc ...

Jewlery : manufacture of jewels ; diamonds

polishing and other gems.

Manutacture of toys for children.

Building materials industry.

Stationery and others.

6- VALUE-ADDED TAX Total exemption of the value-added tax on works and services

realized for the company benefiting from the status.

III - OTHER DUTIES AND TAXESAny other duty or tax not specifically mentioned herein shall

be exempted.

IV - ANY OTHER BENEFITS

free zone

Preferential tariffs are granted to free zone companies

on the provisions of public utilities (telephone, water,

power supply and port services).

Thus companies which have been granted the Togo

Export Processing Zone Status, enjoy the following

benefits :