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4.2. PE Force of Attraction Principle

The new Tax Code provides for a force of attraction rule whereby a foreign enterprise with a permanent establishment in Benin is taxable in Benin not only on the income directly attributable to the permanent establishment but also on income derived from:

  • Sales in Benin other than through the permanent establishment of goods or merchandize to the extent of the same or similar nature as those sold by the permanent establishment; and
  • Other industrial or commercial activities exercised in Benin other than through the permanent establishment to the extent of the same or similar nature as those exercised by the permanent establishment.