Togo | Draft Finance Law 2026

Togo | Draft Finance Law 2026

On 15 November 2025, the Council of Ministers adopted the draft Finance Bill 2026 (PLF 2026). The Ministry of Economy and Finance published the bill and a summary of fiscal measures on 20 November. The legislation focuses on modernising the tax system and improving compliance through stricter audits.

The draft law does not propose any changes to payroll-related taxes. Personal Income Tax (IRPP) brackets and Social Security (CNSS) contribution rates remain unchanged from 2025.

Overview of general reforms
  1. Disability Employment Tax Credit
Companies hiring staff with certified disabilities on permanent or minimum 12-month fixed-term contracts may claim an annual tax credit of 120,000 CFA francs per employee. This non-refundable credit offsets Corporate Income Tax. HR departments must ensure these employees are correctly identified in the payroll system to calculate the credit for annual tax returns.
  1. Youth and Women Entrepreneurship Incentives
To encourage entrepreneurship, the draft law proposes reduced contract registration duties for independent contractors who are women or aged between 18 and 40. This measure aims to reduce the administrative cost of engaging with freelancers in these categories. 
  1. Stricter compliance enforcement
The government aims to fund a budget increase through improved tax collection rather than new taxes. Consequently, the Togolese Revenue Authority (OTR) is expected to increase audits on benefits in kind. 

Additional information
The draft law has been submitted to Parliament for discussion and voting. It will only become the Finance Act for 2026 once it has been approved by Parliament and formally promulgated. If adopted, the measures will apply from 1 January 2026 following publication of the final law.

The draft Finance Bill for 2026 is available on the Ministry of Finance and Budget website.

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