| Taxable Income (CDF) |
Tax Rate |
| 0 - 524,160 | 0% |
| 524,161 - 1,428,000 | 15% |
| 1,428,001 - 2,700,000 | 20% |
| 2,7000,001 - 4,620,000 | 22.5% |
| 4,620,001 - 7,260,000 | 25% |
| 7,260,001 - 10,260,000 | 30% |
| 10,260,001 - 13,908,000 | 32.5% |
| 13,908,001 - 16,824,000 | 35% |
| 16,824,001 - 22,959,000 | 37.50% |
| Over 22,956,001 | 40% |
| Taxable Income (CDF) |
Tax Rate |
| 0 - 524,160 | 0% |
| 524,161 - 1,428,000 | 15% |
| 1,428,001 - 2,700,000 | 20% |
| 2,7000,001 - 4,620,000 | 22.5% |
| 4,620,001 - 7,260,000 | 25% |
| 7,260,001 - 10,260,000 | 30% |
| 10,260,001 - 13,908,000 | 32.5% |
| 13,908,001 - 16,824,000 | 35% |
| 16,824,001 - 22,959,000 | 37.50% |
| Over 22,956,001 | 40% |
Salaries and all benefits in cash or in kind paid to local and expatriate employees are taxable at a maximum rate of 30% after deduction of the employee?s social security contribution. The tax is withheld by the employer who is liable for the payment of the tax.
Family allowances, pensions, annuities, housing, transport allowance and medical expenses are exempted up to the proportion fixed by the administration.
Casual and consultant salaries are taxable at the rate or 15%. The employer is liable for the payment of the tax.
Employers employing expatriates are subject to the payment of a special tax applied on the basic salary of these employees. The rate is 10% for mining companies (and their sub-contractors) and 25% in all other cases.
Resident companies
Corporation tax
Resident companies 35%
Mining companies 30%
Capital gains 35%
Dividends (local) 20% (withholding tax)
Dividends (foreign) Exempt
Dividends distributed by mining companies and
their subcontractors 10% (withholding tax)
Interest 20% (withholding tax)
Royalties 20% (withholding tax)
Rental revenue 22% (withholding tax of 20%; 2% tax on landlord)
Remuneration for services provided by foreign companies 14% (withholding tax)
Non-residents
Individual salary tax Max 30%
Corporation tax 35%
- Non-resident companies 35%
- Non-resident mining companies 30%
Capital gains 35%
Dividends (local) 20% (withholding tax)
Dividends distributed by mining companies and
their subcontractors 10% (withholding tax)
Interest 20% (withholding tax)
Royalties
20% (withholding tax)
Rental revenue 22% (WT of 20%; 2% on landlord)
Capital Gains Tax in Democratic Republic of Congo
There is no special tax on capital gains in the DRC. Capital gains are treated as ordinary income and subject to corporate tax. It should be noted that latent capital gains on business assets are exempted in so far as they are not realised by the taxpayer. The rate is 35% in common law and 30% for mining companies.
VAT has been levied since 1 January 2012, replacing the local turnover tax. Imports and transactions within the DRC are taxed at 16%, while exports are zero rated.
Individuals and companies are subject to VAT. Only when the companies? annual turnover is greater than or equal to CDF80 million (approximately US$90 000), can they be allowed to collect VAT. Service providers are, however, VAT Collectors regardless of their turnover.
The following steps, inter alia, have been taken for the
implementation of VAT:
- The election as VAT Collector status is subject to the
agreement of the administration, if the taxpayer?s turnover is
greater than or equal to CDF80 million;
- Companies based outside the DRC, but rendering services to DRC companies, are not liable for VAT. However, their DRC clients or Tax Representatives are required to declare VAT on those invoices issued without VAT;
- Specifically listed agricultural equipment is exempt from VAT;
- Specifically listed pharmaceutical inputs are exempt from VAT; and
- VAT on the importation of wheat and wheat flour as on local sale of wheat, bread and wheat flower is suspended until further notice.
The law exempts the import and purchase of equipment, materials,
reagents and other chemical products intended for prospecting,
exploration, research and development and construction of mining
and petroleum projects, before exploitation.
VAT refunds are granted to exporters, to companies which have ceased trading, to those that lose the Collector status, as well as to those that have made large investments (tangible assets acquired in new condition and necessary for the company?s operations and whose project value is at least equal to CDF1 billion).
No stamp duty is levied in the DRC. Inter-ministerial Order No. 243/CAB/MIN/J & DH/2010 and No. 043/CAB/MIN/FINANCES/2010 of 4 May 2010, however, provides registration fees at a fixed rate of 1% of capital for any capital increase operation of corporations with limited liability, credit agencies and microfinance institutions.
The transfer of assets is subject to registration duty at variable rates ranging from 5% to 10% of the price, depending on the type of property (i.e. developed or undeveloped), its use (business premises or dwellings) and its location.
IPR, IER and INPP must be remitted before the 10th day of the month following the month of payment of the salaries.
INSS social contributions must be remitted before the end of the month following the month of payment of the salaries.
The National Employment contribution must be declared and paid before the 15th day of the month following the month of the salary payment.
Tax on movable assets is due before the 10th day of the month following the month of the payment.
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