Financial Crime World

Compliance with Financial Regulations on the Rise in Mali

Mali’s government has implemented stringent measures to boost economic growth and development by ensuring compliance with financial regulations. The country’s indirect tax system is now subject to stricter rules, affecting both established and non-established businesses.

Value Added Tax (VAT) Regulations

Key Points:

  • Value Added Tax (VAT) remains the main type of indirect taxation in Mali.
  • Companies with an annual turnover below 50 million CFA Francs are exempt from VAT registration.
  • Non-established businesses are not subject to any specific registration limit.

Digital Services Now Taxable

Non-resident suppliers of electronically supplied/digital services to private consumers in Mali must comply with tax regulations, including:

Fiscal Representative Requirements:

  • Designate a fiscal representative to carry out necessary formalities and make payments due on their behalf.
  • Appoint a fiscal representative who will undertake tasks such as submitting VAT returns and making payments.

VAT Returns and Penalties

Important Dates:

  • Monthly VAT returns are required to be submitted by the 15th of each month.
  • Failure to comply attracts penalties, including fines, interest charges, and potential losses of business licenses.

Other Declarations Required

In addition to VAT returns, businesses must also submit declarations for withheld taxes.

Penalties for Tax Audits and Fraud

The Malian government has implemented harsh penalties for tax audits and fraud, including:

Fines:

  • 50% or even 100% of the due amount in cases of intentional wrongdoing.

Claiming VAT Incurred by Overseas Businesses

Overseas businesses that are not registered in Mali may still claim VAT incurred on their operations, provided they meet specific requirements.

Electronic Filing Requirements

The Malian government has introduced electronic filing requirements for VAT declarations, which can be done online through the “e-services Mali” portal.

For More Information:

Contact [insert contact information] for more information on indirect tax in Mali.