Benin

Thematic Areas

• Compliance and Enforcement
• Information Technology
• Payments
• Political Economy
• Revenue-Services Links

In Benin, the property tax, known as la Taxe Foncière Unique (TFU) is managed by the Directorate General of Taxation ( Direction Générale des Impôts -DGI) manages property tax, known as la Taxe Foncière Unique (TFU), on behalf of municipalities, as mandated by the General Tax Code (Code Générale des Impôts, CGI). This tax is only collected in areas with an urban land register, and the revenue is divided, with 90 percent allocated to communes and 10 percent to the central government. Benin’s property tax system is declarative and taxpayers are expected to report their property assets to the DGI, although the DGI may also perform censuses to identify and register properties.

The Beninese government established the urban land register (Registre Foncier Urbain, RFU) to facilitate the DGI’s mandate to identify properties for taxation, aiming to enhance land titling and owner identification to boost local fiscal resources. The DGI is responsible for property valuation, issuing tax notices, revenue collection and enforcement. The DGI collaborates with municipalities and uses their personnel to distribute tax notices. Taxpayers are expected to pay their taxes at one of the 77 taxation offices, known as Centre des Impôts des Petites Entreprises (CIPE), located throughout Benin.

The DGI has faced challenges maximizing property tax revenue and is implementing reforms to enhance various aspects of the property tax system. For example, DGI officials are exploring different methods for valuing properties more efficiently and fairly. The DGI has also signed a collaboration agreement with municipal governments to streamline the billing process and improve central-local relations. Additionally, the DGI aims to encourage voluntary tax compliance by engaging taxpayers through television and radio shows to highlight the significance of property tax contributions and by sending text message reminders about payment deadlines.

Learn more:

• Tayoh and McCluskey (2017) : “Chapter 3 : Benin” in Property Tax in Africa https://www.lincolninst.edu/publications/books/property-tax-in-africa
• ONU Habitat (2012): Les Registres Fonciers Urbains 
  https://unhabitat.org/sites/default/files/download-manager-files/Les Registres Fonciers Urbains.pdf