Adopted a legal framework for free zones

On 24 June 2011, Togo adopted Law No. 2011-18, which establishes the legal framework for the creation and operation of industrial free zones in the country.

The 2011 law, which amends the 1989 law establishing the Export Processing Zone (EPZ), provides an advantageous taxation scheme for companies based in the EPZ, offering a reduced tax rate on profits for the first 20 years of operation. This includes a five per cent tax on profits for the first five years. Additionally, the law exempts companies from customs duties and VAT on imported equipment and inputs, and from VAT on goods and services purchased locally. It also grants EPZ companies the freedom to repatriate capital, including dividends and other income.

However, the law also exempts companies within the EPZ from several legal protections for workers, including protection against anti-union discrimination in hiring and firing practices.

• Type:

  • Promotion and facilitation (Investment incentives, Special economic zones)

• Industry:

  • Not industry specific

• Sources:

  • Official Journal , Togo – Loi n°2011-18 du 24 juin 2011 portant statut de zone franche industrielle, https://investirautogo.tg/media/DECRET%20LOI%20N%C2%B0%202011-018%20-%20ZONE%20FRANCHE.pdf, 14 Jan 2014
  • Droite Afrique, Togo – Loi n°2011-18 du 24 juin 2011 portant statut de zone franche industrielle, https://droit-afrique.com/upload/doc/togo/Togo-Loi-2011-18-zone-franche.pdf, 24 Jun 2011
  • Togo - United States Department of State, Togo - United States Department of State, https://www.state.gov/reports/2021-investment-climate-statements/togo/, 24 Jun 2011