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3. CORPORATE RESIDENCE

Benin tax law does not precisely cater to the definition of corporate residence mainly due to the applicable territorial regime under which residence is not always paramount. A company is generally deemed to be resident if it has its registered seat in Benin or is controlled from Benin.

Under the prevailing territoriality rule, taxable income is defined as income realized through an enterprise conducted in Benin, as well as any income, the taxation of which is attributed to Benin under a tax treaty. The notion of enterprise conducted in Benin is defined as the habitual conduct of a commercial enterprise in Benin whether through (a) an establishment, meaning a fixed autonomous installation, (b) a dependent agent, or (c) a complete commercial cycle (e.g. purchase and resale of goods). It follows from the territoriality rule that business income realized through an enterprise carried out outside Benin is not taxable therein (but passive income not attributable to an establishment abroad is taxable in Benin).