Capital Gains Taxation in Benin
In Benin, the taxation of capital gains is governed by the General Tax Code (Code Général des Impôts), specifically Article 14. Capital gains are defined as profits realized from the disposal of movable or immovable property, including:
- Real estate
- Stocks and bonds
- Business assets
The tax base for capital gains is calculated as the difference between the selling price and the acquisition cost of the asset. Adjustments may be made for expenses related to the sale, such as brokerage fees and legal costs.
Capital gains are taxed at a flat rate of 20%. However, certain exemptions and reductions may apply, such as:
- Gains from the sale of a principal residence are exempt from tax.
- Gains from the sale of shares in a company that has been held for more than two years are taxed at a reduced rate of 10%.
The legal framework for capital gains taxation in Benin aims to ensure that individuals and businesses contribute their fair share of tax on profits realized from investments and asset disposals. The flat tax rate of 20% provides a simple and transparent system for calculating and paying capital gains tax.
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