Togo: 20 Companies Account for Over Half of 2025 Tax Breaks

• Just 20 companies accounted for 52.83% of Togo's CFAF 174.7 billion in tax expenditures in 2025.
• Total tax expenditures for 2025 increased by 6.4% from the previous year, rising from CFAF 164.1 billion in 2024.
• Lomé Container Terminal received CFAF 25.4 billion in tax relief, while ASKY received CFAF 15.8 billion.
• Tax exemptions comprised 90.1% of all tax expenditures, with 57% specifically targeting businesses.
• These tax expenditures were equivalent to 19.1% of government revenue collected and 2.6% of Togo's GDP.

Lawyers advising businesses in Togo should therefore consider these developments, as they signal a possible shift in the regulatory landscape concerning tax breaks, urging companies to review their current tax incentive structures for potential exposure to policy changes.

Togo's government has released a report indicating that a mere 20 companies were responsible for over half of the nation's tax expenditures in 2025, specifically 52.83% of the total CFAF 174.7 billion. This significant concentration of tax incentives among a limited number of enterprises is a central finding of the assessment. The report, compiled by the Comité national d’évaluation des dépenses fiscales (CONEDEF), which is the national body tasked with assessing tax expenditures, underscores the substantial revenue the government foregoes.

The total amount of CFAF 174.7 billion represents the estimated revenue lost through various tax exemptions, reductions, and concessions on customs duties. This figure marks a 6.4% increase compared to the previous year's total. The CONEDEF's analysis, which utilized data provided by the Office Togolais des Recettes (OTR), Togo's primary tax and customs authority, revealed a rise in tax expenditures from CFAF 164.1 billion in 2024 to the CFAF 174.7 billion recorded for 2025, signifying an increase of CFAF 10.6 billion within a single year.

Among the primary recipients of these substantial tax benefits, Lomé Container Terminal (LCT), a prominent operator in the container terminal sector, stood out. LCT received tax relief amounting to CFAF 25.4 billion, which alone constituted 14.54% of all tax expenditures in 2025. Following closely was ASKY, an airline based in Lomé, which secured CFAF 15.8 billion in tax advantages, accounting for 9.04% of the total. Combined, these two entities alone garnered nearly a quarter of the entire tax expenditure sum.

The report further detailed the composition of these expenditures, noting that tax exemptions made up the vast majority, specifically 90.1% of the total. When categorizing the beneficiaries, incentives directed solely at businesses represented 57% of the overall amount. An additional 39.1% of the tax expenditures were allocated to programs that benefited both businesses and individual households, indicating a dual-purpose approach for a significant portion of the relief. Corporate income tax relief, for instance, increased from CFAF 42.8 billion.

The scale of these tax expenditures has a notable impact on Togo's national finances. The CFAF 174.7 billion in foregone revenue for 2025 was equivalent to 19.1% of the government's total collected revenue for the period. Furthermore, this amount represented 2.6% of the nation's gross domestic product (GDP), illustrating the significant economic footprint of these incentive programs. The sustained growth in these expenditures, as evidenced by the year-over-year increase, highlights an ongoing trend in the country's fiscal policy.

This detailed CONEDEF report, by spotlighting the concentrated nature of Togo's tax incentives, provides critical insights for legal professionals and compliance officers. The findings suggest that the government may intensify its scrutiny of tax incentive programs, potentially leading to policy adjustments that could influence future applications or the continuation of existing relief. Lawyers advising businesses in Togo should therefore consider these developments, as they signal a possible shift in the regulatory landscape concerning tax breaks, urging companies to review their current tax incentive structures for potential exposure to policy changes.

Lawyers advising businesses in Togo should note the government's report on concentrated tax expenditures, which may signal increased scrutiny of tax incentive programs and potential policy adjustments affecting future applications or existing relief. Compliance officers should review their companies' tax incentive structures for potential exposure to policy changes.

Source: Original reporting via CONEDEF report