Senegal Takes a Major Step in its Digital Strategy with the Implementation of an 18% Digital Tax
In July 2024, Senegal took a significant step forward in its digital development strategy with the introduction of an 18% digital tax. This measure is part of a broader effort to build a tax system adapted to the digital economy, ensuring greater equity between traditional and digital actors.
The tax applies to various digital services that have become commonplace in citizens' daily lives, including:
- Streaming (audio and video)
- Software subscriptions (SaaS)
- Cloud computing
- Online advertising
- Downloadable video games
- Paid mobile applications
In just a few months, it has enabled the mobilization of over $1.7 million in VAT.
During a high-level panel discussion on digital economy taxation, Boubacar Roger Thiam, Director of Digital Economy and Partnerships and Secretary of the CEAC, praised the efforts of the Ministry of Communication, Telecommunications, and Digital (MCTN), led by Alioune Sall, as well as the close collaboration with the Ministry of Finance and Budget, led by Cheikh Diba.
This reform is part of the New Technological Deal, a national program aimed at positioning digital technology as a lever for structural economic transformation. Rather than hindering innovation, this fiscal approach aims to recognize the value created locally and contribute to the financing of national development.
With this initiative, Senegal confirms its ambition to build a sovereign, modern, and inclusive tax model, adapted to the challenges of the 21st century.
