The New “Simplified” Reality: Understanding the Comprehensive Tax (IGS) for 2026

Understanding the Comprehensive Tax (IGS) for 2026

Business owners have been debating the meaning of the “deleted” 5% tax rate in the 2026 Finance Law. Was it a mistake? Was it a tax cut?

The reality is far more significant. The government has fundamentally restructured how Small and Medium Enterprises (SMEs) are taxed. The old “Simplified Regime”—where you paid a percentage of your turnover monthly—is being phased out for many.

It has been effectively replaced by the Comprehensive Tax (known in French as Impôt Général Synthétique – IGS). If your turnover is between 10 Million and 50 Million CFAF, you are likely moving into this category. This isn’t just a change in name; it is a change in how you must manage your cash flow and your deadlines.

From Percentage to “Class” Brackets

Under the old system, if you made more money, you paid more tax linearly (5.5% of every franc). Under the IGS (Comprehensive Tax), detailed in the Law on Local Taxation, you now pay a fixed annual amount based on your turnover bracket (or “Class”).

This means your tax is determined by which “bucket” you fall into, not your exact monthly sales.

• Class 8 (10M to < 20M turnover): 500,000 CFAF / year.
• Class 9 (20M to < 30M turnover): 1,000,000 CFAF / year.
• Class 10 (30M to < 50M turnover): 2,000,000 CFAF / year.

The Trap: Turnover vs. Profit

The most dangerous aspect of the IGS is that it is a tax on turnover, not profit. If you are in Class 10 (turnover of 40 Million), you owe 2 Million CFAF regardless of whether you made a profit or a loss. Unlike the Actual Earnings regime, you cannot deduct your rent, salaries, or electricity to lower this tax. It is a fixed cost of doing business.

New Rhythm: Quarterly Payments

The rhythm of your treasury management must change immediately. In the past, you paid a small amount every month. The IGS mandates Quarterly Payments. You must now save your cash to pay large lump sums four times a year.

• 1st Quarter: Due by April 15.
• 2nd Quarter: Due by July 15.
• 3rd Quarter: Due by October 15.
• 4th Quarter: Due by January 15.

If you treat your cash flow carelessly in February and March, you will hit a wall in April when the quarterly bill arrives.

Read Also: Comprehensive Tax Rates Explained

The Critical Deadline: May 15th

While the payments are quarterly, the Declaration is annual. For taxpayers in this category (managed by the Divisional Tax Centers – CDI), the absolute deadline to file your Annual Declaration is May 15th.

This is not a suggestion. Failure to file by May 15th triggers:

1. Arbitrary Assessment (Taxation d’Office): The tax chief decides what your turnover was (often estimating it higher than reality).
2. Penalties: Late filing penalties can add 50% to 100% to your debt.
3. Closure: The Law on Local Taxation (Section C 45) explicitly authorizes the closure of business for failure to pay or declare IGS.

What the “Discharge” Covers (And What It Doesn’t)

The term “Comprehensive” (Synthétique) means this tax discharges you from several other obligations. Once you pay your IGS, you are exempt from:

• Business License (Patente)
• VAT (Value Added Tax)
• Personal Income Tax (IRPP) on your business profits.

However, you are NOT free from everything. You are still legally required to pay:

• Taxes on Employee Salaries: If you have staff, you must declare and pay their taxes monthly.
• Withholding Taxes on Rent: If you rent a shop or office, you must withhold tax from your landlord and pay it to the state.
• Liquor License: If you sell alcohol, this is a separate, non-negotiable fee.

How to Survive the Transition

The shift to IGS simplifies the math but hardens the cash flow requirement.

1. Know Your Class: If you estimate your turnover will be 19 Million (Class 8) but you accidentally hit 21 Million, your tax bill doubles from 500,000 to 1 Million. You need precise tracking.
2. Save Monthly: Even though payment is quarterly, you should set aside funds monthly. Don’t let the “free months” fool you.
3. Prepare for May 15th: Do not wait until the week of the deadline. The administration requires a detailed declaration of your activity.

At OpenHub, we help you navigate this complexity. OpenHub Consulting can review your turnover projections to confirm exactly which IGS Class you belong to, preventing you from overpaying or under-declaring. We also assist in preparing your May 15th declaration to ensure it is audit-proof.

The rules have changed. Your strategy must change with them.