Togo: The 2026 Finance Act, between tax modernisation and economic recovery for inclusive development
Adopted on December 29, 2025, the finance law of Togo for the 2026 fiscal year, featuring a balanced budget of 2,740.5 billion CFA francs, introduces significant tax innovations. These measures aim to strengthen revenue mobilization while steering economic policy toward targeted social and productive objectives.
A major pillar of this reform is the modernization of collection. The mandatory introduction of the certified electronic invoice constitutes a technological advance designed to improve transaction traceability, combat VAT fraud, and facilitate tax audits.
Simultaneously, a final withholding tax of 5% is applied to gambling and betting winnings exceeding 500,000 CFA francs, a measure immediately effective for capturing new revenue.
The legislation clearly aims to support strategic sectors. To boost livestock farming and fishing, VAT on local animal feed and supplements is exempted to reduce input costs.
Conversely, an export tax is introduced on raw cashew nuts, soybeans, and unrefined shea nuts.
The goal is to incentivize the local processing of these raw materials, thereby creating more added value within the national territory.
The social and inclusive aspect is also addressed. To promote the employment of persons with disabilities, a tax credit of 120,000 CFA francs per relevant employee is granted to companies.
The law also facilitates access for young and women entrepreneurs to public procurement markets by allowing deferred payment of registration fees.
Finally, an adjustment to wealth taxation is made through a proportional duty of 3.5% on capital gains from property revaluations.
The success of this revenue mobilization largely depends on the Togolese Revenue Office (OTR), whose performance is deemed encouraging.
After collecting 830.5 billion CFA francs against a target of 1,200 billion by the end of September 2025, the agency is tasked with funding the ambitions of the 2026 budget, which represents a 14.4% increase.
This finance law thus marks an important step: it combines administrative modernization tools to broaden the tax base with targeted incentives designed to stimulate local production, employment, and economic inclusion.
Kodjovi Makafui
