background image
5.4. Tax Base for Non-Resident Entities

A non-resident company with a PE or other business establishment in Mali is taxed therein on Mali-source income similarly to resident companies. Head office overhead allocated to a branch or PE in Mali is deductible for corporate tax purposes, but the deduction is capped at 20% of the branch or PE’s accounting profits before the deduction. There is, however, a branch remittance tax (10%) on after-tax profits. Non-residents without a PE or business establishment in Mali are taxed at final withholding taxes on defined Mali-source income. Whilst the withholding tax is due on the gross amount, a lump sum deduction for costs is granted in various situations (see Sec. 8.2.2.).