Senegal is a leading producer of phosphates, as well as smaller quantities of gold and construction materials. Mining royalties are the primary way the government collects revenue from the mining sector.
Main Mining Products
- Clays and attapulgite
- Iron ore
- Mineralized sands
What Are We Doing in Senegal?
We began working with Senegal’s mining, finance, and tax authorities in 2020 and expanded our activities in 2021. Our work is focused on three revenue collection challenges: the valuation of mining licences for the taxation of indirect transfers, mineral pricing auditing for royalty and income tax assessments, and transfer pricing audits.
Legal and Policy Support
Our support will include making recommendations on a mining tax policy and developing regulations applicable to the taxation of offshore indirect transfers of mining assets.
We have carried out a combination of technical assistance and capacity-building workshops to help the government review mineral prices and deductions from the royalty base for four mines and conduct audits in the future. We also led training for revenue and mining officials on the mining value chain and pricing of mineral sands, a key export for Senegal. Additionally, we partnered with the African Tax Administration Forum (ATAF) to deliver a workshop on transfer pricing in the sector.
We helped the tax authority with economic valuations, including one on a large indirect transfer of mining assets that resulted in a settlement and another in 2021 that is yet to result in a tax assessment. In 2021, we also worked with a transfer pricing expert from ATAF to support price audits in the extractives sector.
We will support continuing the development of audit capacities in line with the program’s priorities.
Photos from our International Taxation and Mining workshop in Dakar, Senegal in January 2020.