Practical Tax guide 2022

Republic of Congo

By: Worthy Advisory

January 2022

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Summary
1. Income tax ................................................................................................................ 3

1.1. Corporate income tax (IS) ................................................................................................................................... 3

1.2. Personal income tax (IRPP) ................................................................................................................. 5

1.3. Income tax on securities (IRVM) ................................................................................................... 7

1.4. Withholding taxes, provided for in Articles 183 and 185 ter of the CGI, Volume 1 ............................................ 8

2. Miscellaneous taxes on wages ............................................................................... 10

2.1. Single Payroll Tax (TUS) ... ............................................................................................................................... 10

2.2. Solidarity contribution for Universal Health Insurance Coverage (CAMU) ...................................................... 11

2.3. Departmental tax ............................................................................................................................................ 11

3. Other taxes ........................................................................................................... 12

3.1. Special Corporation Tax (SST)
........................................................................................................................................................................ 12
3.2. Corporate Passenger Vehicle Tax (TVTS)
...................................................................................................................................................................... 13
3.3. Contribution of the patent

................................................................................................................................................... 13

3.4 Real estate tax

..................................................................................................................................................... 15

3.5 Occupancy tax (TOL) ....................................................................................................................................... 15

3.6 . Registration fees
........................................................................................................................................................................... 16
3.7 Value added tax (VAT)
......................................................................................................................................................................... 18

4. Customs duties / Special tax regimes ................................................................. 20

4.1. Customs duties ......................................................................................................................................... 20

4.2. Taxes and taxes applicable to the hydrocarbon and mining sectors: Summary ....................................... 22

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1. Income taxes
1.1. Corporate Income Tax (CIT)

Scope

The CIT applies to net profits or income made by any industrial, commercial, artisanal, agricultural, or real estate
enterprise whose professional activity is carried out in the Republic of Congo.

An economic activity is deemed to be carried out in the Congo when there is habitual exercise of that activity
either in the context of a permanent establishment or through representatives without independent professional
personality or when that activity results in transactions which form a complete commercial cycle.

CIT base

The profit liable to the CIT determined based on the overall results of the operations of all kinds carried out by the
enterprise during the period on which the tax is based and established under deduction of all the expenses directly
required by the exercise of the taxable activity.

As an example of professional expenses for a Congolese company, the following expenses are commonly allowed
as deductions:

- Salaries, wages, allowances, allowances, benefits in kind and reimbursement of expenses allocated to
employees.
- Remuneration of any kind paid to the managing partners of capital companies if they correspond to
actual employment.
- Sums paid to a natural or legal person outside the Congo, up to a limit of 20% of the taxable profit
determined before deduction of the expenses in question.
- Rents, provided they are not exaggerated.
- Taxes, in particular professional taxes due or assessed during the financial year and which are the
responsibility of the company.
- Agios, interest, commissions, and other financial costs.
- Depreciation annuities regularly recorded.
- Carry-overs of deficits until the third financial year following the financial year in which the losses were
generated.
- Donations and subsidies made to the State as part of the solidarity fund for the fight against Covid-19.

On the other hand, the following expenses are not considered deductible from taxable income:

- Non-financial expenses or expenses not required by the direct operation of the company.
- The CIT itself, the PIT, the TSS and the TVTS.
- Transactions, fines, confiscations, and Tax penalties.
- Premiums paid by the company for its own insurance.
- The remuneration granted to the director or sole member, a natural person, of a single-member capital
company.

CIT rate

The CIT rate is set at 28%.

However, the CIT rate is:

- 25% for companies engaged in microfinance or a private education activity organized in a company.
- 33%, as a flat-rate Corporation Tax (flat-rate CIT), for foreign companies engaged in economic activities on
Congolese territory under conditions of intermittency and precariousness.

For the calculation of the CIT, any fraction of the taxable profit less than 1,000 FCFA is neglected.

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Terms of payment

The CIT is determined on 4/5 of the taxable or declared profit of the most recent financial year closed, or when
no financial year has been closed during the year, of the last profit declared or realized, to which the company
applies the rate of 28%.

For new companies, the CIT is calculated on 5% of the share capital, to which the current IS rate is applied.

Any company subject to the CIT is subject to the payment of this tax in the form of advance payments, calculated
by it, the amount of which is equal to a quarter of the tax determined.

The first instalment of a financial year shall be equal to the instalments due in the preceding financial year. It is
regularized, if necessary, when the second deposit is paid.

As part of the liquidation of the Tax relating to the profits made during a financial year, the balance is paid by the
company, no later than May 20 of each year, after deduction of the advance payments already paid. If it appears
from that assessment that the CIT due is less than the amount of the instalments already paid, the excess is set
off against the tax relating to subsequent financial years until exhaustion.

Regarding the flat-rate CIT, the Tax is based on a flat-rate percentage set at 22% of the turnover excluding taxes
achieved in the Republic of Congo, or 7.26% of the taxable base (22% x 33% of the turnover excluding taxes).

Reporting obligations

The duly calculated deposits are paid by the company without warning to its Tax residence.

They must be paid no later than February 20, May 20, August 25, and November 20 of each year.

The ISF is paid spontaneously and is due no later than the 20th of the month following that of the date of payment
provided for on the invoice or in the contract for the works or services performed, knowing that the invoicing occurs
at the latest the end of the second month following that of the performance of the services or the delivery of the
goods.

1.2. Personal income tax (PIT)

Scope

Subject to the provisions of international conventions, natural persons of Congolese or foreign nationality who
may or may not have their tax domicile in the Congo, whether they have a habitual residence in the Republic of
the Congo, may be taxable to the PIT in respect of profits or income, products, or profits of any kind from
Congolese sources.

Natural persons whose total net income does not exceed the SMIG (Guaranteed Interprofessional Minimum
Wage) are exempt from the PIT.

Plate

The PIT is levied on the taxpayer's total net income, consisting of the total of the following categorical net profits
or income:

- Income from built and unbuilt properties of any kind, not included in the profits of an industrial or commercial
enterprise, an agricultural holding, or a non-commercial profession, as property income.
- Profits made by natural persons from the exercise of industrial, commercial, and artisanal activities or mining
(BICA).
- Public and private salaries, wages, allowances and emoluments, pensions, and life annuities (PIT/TS).
- Profits from non-commercial professions and similar income (BNC).
- Proceeds from shares and shares and similar income, as income from movable capital.
- Capital gains realized by natural persons and persons treated as such.
- Profits made by natural persons from the exercise of an agricultural activity (BA).

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The following are not included in the tax base at the PIT:

- Income from immovable property or parts of immovable property which the owner reserves the right to enjoy
or which is occupied free of charge by his descendants or ascendants in a direct line.
- Income from agropastoral, fish farming and inland fishing.
- Family allowances or family assistance allowances granted to employees insofar as they do not exceed the
legal rates, allowances paid to pupils and students doing a holiday internship.
- Life pensions or annuities for disability resulting from accidents at work, retirement pensions.
- Severance or voluntary severance pay, and notice pay paid as part of a social plan.
- The retirement bonus within the limit of the amount provided for in the collective agreement.
- Indemnities and premiums of a reimbursement nature (transport allowance, representation premium, basket
premium, etc.).

Terms of payment/collection

To calculating the PIT, the taxable income is rounded down to the nearest thousand francs and divided into several
shares fixed according to the taxpayer's situation and family responsibilities.

As a reminder, the situation and family responsibilities that must be considered are those existing on the 1st of
January of the Tax year. However, in the event of a change or increase in the taxpayer's family responsibilities
during the year, the situation as of 31 December of that year shall be reported.
For the determination of the family quotient, the number of shares is fixed as follows:

Taxpayer's family status Number of parts

Single, divorced or widowed (without dependent children) 1
Married without dependent children 2
Single or divorced with 1 dependent child
Married or widowed with 1 dependent child 2.5
Single or divorced with 2 dependent children
Married or widowed with 2 dependent children 3
Single or divorced with 3 dependent children
Married or widowed with 3 dependent children 3.5
Single or divorced with 4 dependent children
And so on by increasing by half a share per dependent child of the taxpayer (or on the one hand
for the infirm dependent child of full age) up to a maximum of 6.5 shares

The net taxable income corresponding to a share is taxed by applying the rate of:

Annual income fractions Rate

< = 464 000 FCFA 1%
From 464,001 to 1,000,000 FCFA 10%
From 1,000,001 to 3,000,000 FCFA 25%
For the fraction above 3,000,000 FCFA 40%

Reporting obligations

Any natural person liable for the PIT is required to submit a monthly declaration within 20 days of the end of the
month in which he disposed of taxable income or profits.

Regarding the PIT/TS, the tax is deducted at source by the employer on the employee's remuneration. The
declaration is thus made by the employer at the latest within 20 days following the month of payment of the
remuneration, when the employer employs more than 5 people, or at the latest within 20 days of the first month
following the end of the quarter, when he employs less than 5 people.

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 1.3. Securities Income Tax (SIT)

Scope

The SIT applies to:

- Any somme or securities attributed to the partners or shareholders as dividends, interest, arrears, income or
any other income from their shares or units.
- The amount of total or partial repayments and depreciation of capital that companies make before their
dissolution or liquidation.
- Fees, attendance fees, flat-rate reimbursements of expenses and any other remuneration due to the sole
director or members of the board of directors, and attendance fees paid to shareholders at general meetings.
- Salaries, flat-rate reimbursements of expenses and any other remuneration accruing to general partners in
limited partnerships whose capital is not divided into shares.
- Interest, arrears and any other income from bonds and loans represented by negotiable securities of local
authorities, public institutions, and commercial companies.
- Presumed distributed income: For example, we can mention the hidden remuneration and benefits attributed
to unitholders or shares, adjustments having the effect of increasing the taxable result at the IS, the net
accounting profits of branches of foreign companies and the flat-rate profits of foreign companies and
Congolese law subject to the flat-rate CT (Corporate Tax), profits allocated to the pound reserve for which
distribution has not taken place within three years, etc.).

Plate

Taxable income is determined:

- According to the deliberations of the boards of directors, the deliberations of the general meetings of
shareholders or partners or the decisions of the latter, the minutes, the balance sheets, or other documents:
About shares, shares of founders, beneficiaries or interest, sponsorships, repayments and total or partial
depreciation of capital, tantièmes, attendance fees, remuneration of or directors.
- By interest or income distributed in the year: For bonds or borrowings.
- By the difference between the amount repaid and the issue rate of the loans: For repayment premiums.

Rate

The common duty rate of the SIT is 15%.

However, the following rates are specific to the following cases:

- 17%, applicable to the amount of fees, attendance fees, flat-rate reimbursements of expenses and any other
remuneration accruing to the sole director or members of the board of directors.
- 20%, applicable for lots paid to creditors and bondholders.

In addition, oil companies are subject to the SIT in Congo, within the limits of the rates provided for in the
establishment agreements signed with Congo. In the absence of agreements, the SIT is liquidated at the rate of
common law.

Similarly, for branches of foreign companies and foreign companies and companies under Congolese law subject
to the flat rate IS, the rate of 15% is applied as follows:

❖ SIT: (22% turnover - ISF (i.e., 7.26% turnover)) x 70% (deemed distributed profit) x 15% (SIT) = 1.5477%
of turnover excluding taxes.

Terms of payment & Reporting obligations

The SIT is paid within three months of the decision of the general meeting of partners or shareholders that decided
on the distribution of income.

For branches of foreign companies and foreign companies and companies under Congolese law subject to the
flat-rate CT, the flat-rate SIT is paid at the same time as the flat-rate CT.

The tax is paid at the tax residence of the taxpayer, for large and medium-sized enterprises, and oil subcontracting
companies. On the other hand, for small businesses, the Tax is paid to the registration office.

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 1.4. Withholding Taxes (WT)

➢ 10% SAR provided for in Article 183 of the CGI, Volume 1

Scope & Plate

Are subject to the withholding tax provided for in Article 183 of the CGI, Volume 1:

- Natural and legal persons, who, while exercising their profession, pay to natural or legal persons established
in the Congo and not subject to the CT, sums in remuneration for services of any kind provided or used in
Congo.
- Telecommunications operators, reseller wholesalers and half-wholesaler resellers not subject to the IS, on
sums, commissions, rebates, and other discounts granted or paid to resellers or distributors of minutes and
prepaid cards.

Rate

The rate of Withholding Tax is set at 10% of the tax base.

Reporting obligations

The WT of 10% is due upon payment of the remuneration referred to above.

The person liable is thus required to pay the said deduction no later than the 20th of the month following that of
payment of remuneration.

➢ RAS provided for in Article 185 ter of the CGI, Volume 1

Scope

Subject to tax treaties aimed at eliminating double taxation, natural or legal persons governed by Congolese or
foreign law, whether having a domicile or tax residence in the Congo, are subject to the withholding tax provision
provided for in Article 185 Ter, CGI, Volume 1.

These persons are liable for Withholding Tax on their income earned in or derived from the Congo, in return for
services rendered or used in the Congo.

Plate

The taxable amount of withholding tax is the gross amount of royalties and other remuneration paid abroad in
return for taxable services.
These include:

- Remuneration paid:

• In the context of the exercise of an independent profession.

• For the use or concession of intangible property or copyright in a literary, artistic, or scientific work.
• For the use or grant of a patent, trademark, design or model, plan, formula, or secret process.
• For the provision of information relating to experience acquired in the industrial, commercial, or
scientific field.
• For the rental of industrial, commercial, or scientific equipment.
• For study work, consultations, technical, financial, or accounting assistance.
• For the provision of assistance, rental of equipment and materials and all services rendered to oil
companies, including during the research and development phases.

- Interest, arrears, and any other fixed-income investment income products, excluding income from bonds.

Rate

The rates of the withholding provided for in Article 185 ter, CGI are fixed as follows:

- General rate of 20%, applicable to all remuneration subject to this Tax.

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 - Average rate of 10%, applicable to the remuneration of one-off services and the royalties of services related
to the audiovisual sector.
- Reduced rate of 5.75%, applicable to remuneration or external income from contracts related to the
unitization zone with Angola and to remuneration paid by maritime and air transport companies under
Congolese law for the development of foreign ships and aircraft and on commissions paid to port agents
abroad.
- Specific rate of 5%, applicable to interest paid by oil companies established in Congo on loans relating to
acquisitions directly intended for studies, research, exploration, development, and oil exploitation.

Reporting obligations

The Tax is withheld at source, by the Congolese company, when paying for the provision of services and is
declared to the tax administration on behalf of the creditor person not domiciled in Congo.
The Congolese company is required to repay the said deduction, no later than the 20th of the month following that
of payment of the taxable sums.

2. Miscellaneous taxes on wages

2.1. Single Payroll Tax (SPT)

Scope

Legal persons governed by public or private law are subject to the single tax on wages if they have one or more
employees.

Plate

The taxable base of the single payroll tax is the gross salary consisting of the salary in the strict sense,
emoluments, bonuses, allowances, allowances, gratuities and benefits and nature.

In short, all sums subject to the PIT are included in the tax base of the SPT.

Rate

The rate of the tax is set at:

- 7.5% of the tax base, for ordinary taxpayers.

- 2.5% of the tax base, for oil companies.

Reporting obligations

In so far as its proceeds are divided between the tax authorities and the CNSS (National Social Security Fund),
the SPT is paid in the month following that in which the salaries, wages and other remuneration were recorded,
as follows:

- No later than the 20th of the following month and up to 60% of its determined amount, with the tax
authorities.
- No later than the 15th of the said month and up to 40% of its determined amount, with the CNSS.

2.2. Solidarity contribution for Universal Health Insurance Coverage (CAMU)

Scope

Are subject to the solidarity contribution for universal health insurance coverage (CAMU), legal persons, individual
farmers as well as holders of high incomes.

Plate

CAMU is liquidated from:

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 - For holders of high incomes, by the fraction of income used to calculate the PIT of the person concerned,
greater than 500,000 FCFA;
- For legal persons and individual operators, by the amount of the licence contribution determined for the
current financial year.

Taxpayers exempt from the licence contribution remain subject to the CAMU, however, as if they had not been
exempted.

Rate

The tax rate is set at 0.5% of the tax base.

Reporting obligations

The CAMU is paid by the Congolese company at the latest:

- The 20th of the month following that of the withholding tax, for holders of high incomes.
- April 20 of each year, for legal persons and individual operators.

2.3. Departmental Tax (DT)

Scope

An annual local tax called departmental tax (ex regional tax) is due by all natural persons of full age on 1st January
of the Tax year, except for those expressly exempted.

The taxpayer is subject to departmental tax in the municipality of his main residence.

Rate

The rate of the departmental tax is set by municipality, by the departmental council.

For the municipality of Pointe-Noire, for example, the departmental tax is set at 2,400 FCFA.
However, for the municipality of Brazzaville, it is set at 2,000 FCFA.

Reporting obligations

The departmental tax is due no later than February 20 of each year.

For employees in the public and private sectors, the tax is levied by means of a withholding tax made by the
employer on the wages of the month of January of the year in respect of which the Tax is due.

3. Other Taxes
3.1. Special Corporation Tax (SCT)

Scope

Companies carrying out a commercial, industrial or craft activity in the Republic of the Congo are subject annually
to the special corporate tax.

However, production or consumer cooperative societies and new companies for the first financial year are exempt
from the SCT.

Plate

The SCT is based on gross turnover as well as miscellaneous revenues and profits made during the last financial
year ended.

However:

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 - For forestry companies, the tax is based on the turnover obtained after deduction of the transport costs of
the Republic of Congo with a CEMAC member state, at the port of embarkation.
- For intermediaries who receive very low gross commissions, the tax is based on the amount of commissions
received.
- For marketers or distributors of petroleum products at controlled prices, the tax is based on the item Costs
and distribution margin, subtracted from all other items in the price structure of petroleum products.

The taxable amount is rounded down to the nearest thousand francs.

Rate

The rate of the TSS is set at 1% of the tax base, with a minimum collection of 1,000,000 FCFA regardless of the
income situation of the year. However, this minimum collection is reduced to 500,000 FCFA for companies whose
annual turnover is less than 10,000,000 FCFA.

However, companies exempt from the CT remain liable for the SCT, at the rate of common law, with a minimum
collection of 1,000,000 FCFA.

Reporting obligations

Taxpayers of the SST are required to pay it by 20 March of each year at the latest to the tax unit on which they
belong.

The TSS is deducted from the amount of the corporate tax (CT) contribution for the same year. If the IS is zero or
lower than the amount of the SCT, it remains acquired from the Public Treasury. Similarly, the SCT paid by
companies exempt from the SI remains vested in the Treasury.

3.2. Corporate Passenger Vehicle Tax (CPVT)

Scope

Are subject in the Republic of Congo to a specific annual tax called tax on company passenger vehicles (SPVT),
passenger vehicles, other than commercial cars, owned by a company used for the transport of its personnel, and
whose date of first entry into circulation is greater than ten (10) years on the first day of the tax period.

The scope of this tax includes both commercial companies, whatever their form and purpose, as well as public
establishments, State bodies and local authorities of an industrial or commercial nature benefiting from financial
autonomy, in respect of vehicles registered in their name on Congolese territory.

Base & Taxation

The amount of the SPVT is fixed according to the power of the vehicles held by the taxable person on the first
day of the Tax year.
The fee is set as follows:

- 200,000 FCFA, per taxable car whose power is less than or equal to 9 HP;
- 500,000 FCFA, per taxable car whose power is greater than 9 HP.

Reporting obligations

The SPVT is paid spontaneously no later than March 20 of the taxation year.
The SPVT paid by a commercial company in respect of a year is not allowed as a deduction for the base of the
IS.

3.3. Contribution of the patent

Scope

The contribution of the patents is an annual municipal tax, which applies to any natural or legal person, regardless
of his nationality carrying out in Congo a trade, an industry, or a profit-making activity, not included in the
exemptions exhaustively provided for by the General Tax Code.
The contribution of the patent is also due by the newly created companies in Congo, for the first year of existence.

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Plate

The amount of the license is established based on the gross turnover achieved during the previous financial year,
declared by the taxpayer.

For new companies, the patent is based on a forecast turnover declared by the patentable.

For a company with several tax entities, the licence is based on the overall turnover and then distributed among
those entities, in accordance with the distribution key defined by the company.

For patentable covered by the flat-rate scheme, the contribution of the licence is based on the turnover used as
the basis for calculating the flat-rate global tax (IGF).

For taxpayers who do not have a turnover, the basis of assessment of the licence consists of all operating
expenses in Congo. On the other hand, for taxpayers without a contract or in a stand-by situation, having not
incurred any operating expenses, the licence is equal to 25% of the last licence normally paid.

Rate

The tax rate is set according to the tax base, as follows:

- 10,000 FCFA, for taxpayers whose turnover (turnover) does not reach 1,000,000 FCFA;
- 0.750%, at the fraction of the turnover between 1,000,000 and 20,000,000 FCFA;
- 0,650%, at the fraction of the turnover between 20,000,001 and 40,000,000 FCFA;
- 0.450%, at the fraction of the turnover between 40,000,001 and 100,000,000 FCFA;
- 0.200%, at the fraction of the turnover between 100,000,001 and 300,000,000 FCFA;
- 0.150%, at the fraction of the turnover between 300,000,001 and 500,000,000 FCFA;
- 0.140%, at the fraction of the turnover between 500,000,001 and 1,000,000,000 FCFA;
- 0.135%, at the fraction of the turnover between 1,000,000,001 and 3,000,000,000 FCFA;
- 0.125%, at the fraction of the turnover between 3,000,000,001 and 20,000,000,000 FCFA;
- 0.045%, for the fraction of the turnover greater than 20.000.000.000 FCFA.

The contribution of the license is rounded to the nearest ten francs.

Reporting obligations

The fees relating to the contribution of the licence shall be due for the whole year and shall in principle be payable
in a single term by 20 April of each year at the latest.

However, when the amount of the contribution of the patent is greater than 100,000 FCFA, the patentable under
the flat-rate regime is authorized to pay in two fractions at the latest during the second quarter of the tax year.

Exceptionally, oil companies are required to pay only 50% of the amount of the contribution of the liquidated
license.

3.4. Real estate tax (RET)

Scope

The real estate Tax is due on the rents of built properties, whatever the use, and on the rents of unbuilt properties
for professional use.

It is due by:

- Tenants on behalf of owners or usufructuaries.

- Sub-tenants on behalf of tenants, natural or legal persons.

Base & Taxation

The real estate tax is equal to 1/12 of the rents to be due during the year.

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Reporting obligations

The real estate tax is payable no later than February 20 of each year for former taxpayers and within three (03)
months of entry into use, for newly signed leases, at the rate of rents to expire on December 31 of the said year.

Tenants, legally liable for the tax, deduct it in one go when paying their rents to the owners, occurring between
January 1 and April 10 of the same year.

3.5. Occupancy tax (OT)

Scope

Is subject to the occupancy tax (OT), any construction in durable materials or any installation occupied by natural
or legal persons as a domicile, office, trade, industry and any other inhabited premises and its dependencies,
subject to being expressly exempted by the General Tax Code.

It should be noted that the tax is payable per occupied premises, regardless of the duration of occupancy in the
tax year.
The property is taxed in the department or municipality where it is located.

Base & Taxation

The tax for the occupation of premises for residential use is collected, for employees who are natural persons, as
a deposit by way of withholding tax from the employer at the rate of 1,000 FCFA / month for employees residing
on the outskirts of their city of residence and 5,000 FCFA / month for those residing in the city center.

As a TOL for professional use, the amount of the tax is determined as follows:

- 60,000 FCFA, for very small and small enterprises, associations and other professions, non-
commercial organizations, as well as agencies or other entities of medium-sized enterprises.
- 120,000 FCFA, for the main entity of medium-sized enterprises and agencies or other entities of
large companies.
- 500,000 FCFA, for the main entity of large companies.

For oil companies, the amount of the OT for professional use is fixed at a flat rate of 5,000,000 FCFA per permit.

Reporting obligations

The TOL for residential use deducted at source is paid spontaneously monthly by the employer in the same way
as the PIT, i.e., no later than the 20th of the month following that in which the remuneration was granted.

On the other hand, companies are required to pay the Tax for the occupation of premises for professional use by
20th February of each year at the latest.
For occupations during the year, the tax is payable at the latest within three (03) months following the date of
entry or occupation of the premises.

3.6. Registration fees

Scope – Basis of assessment – Rates

Fixed or proportional fees are levied for the registration of acts and/or transfers carried out by natural or legal
persons, depending on the nature of the said acts and transfers.

Below is a non-exhaustive list of the rights applicable to certain acts and/or transfers:

Proportional rights: The following are subject to proportional rights:

▪ Assignments of claims on the State: 15%;

▪ Trade in immovable property: 15%;
▪ Transfers of ownership for consideration of business or customers: 10%;

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 ▪ The direct or indirect transfer of the assets of the social rights of companies under Congolese law,
the change of control of the company by a modification of at least 60% of the shareholding, the acts
noting the transfers of shares of interests, rights or obligations: 5%;
▪ Acts of merger of capital companies, whether by way of absorption or creation of a new company:
5%;
▪ Assignments of receivables between persons governed by private law: 4%;
▪ Leases and sub-leases of movable and immovable property for commercial or residential use: 3.15%
(additional cents taken into account);
▪ Acts of capital increase and extension of companies, containing no obligation, release or transfer of
movable or immovable property between partners or other persons: 3% or 5% if the increase is made
by means of an incorporation of profits, reserves or provisions;
▪ Judgments, judgments and other judicial decisions containing final provisions: 3%;
▪ All contracts whose price is paid by the State, local authorities and public institutions: 2%.

Fixed fees: The following are subject to fixed fees:

▪ All acts that are neither priced nor exempted: 10,000 FCFA;
▪ Judgments and other judicial decisions of the courts containing final provisions, whose proportional
right does not reach 15,000 FCFA or not giving rise to the proportional right: 15,000 F CFA;
▪ Deeds of sale or transfer for consideration of ownership or usufruct of ships or boats used for maritime
navigation or inland navigation: 15,000 FCFA;
▪ Deeds of sale or transfer for consideration of ownership or usufruct of aircraft, leasing contracts: 15,000
FCFA;
▪ The final decisions of the Court of First Instance and the Court of Appeal, whose proportional right does
not reach 20,000 F or does not give rise to the proportional right: 20,000 FCFA;
▪ Acts constituting EIGs when the group is constituted without capital: 20,000 FCFA;
▪ Novation contracts: 1,000,000 FCFA;
▪ Minimum collection when transferring interest shares, rights or obligations in oil contracts: 1,000,000
FCFA;
▪ Contracts of oil companies with contractors and subcontractors: 1,000,000 FCFA before their
execution.

Acts to be registered free of charge: The following are subject to registration free of charge:

▪ The instruments of incorporation of companies (articles of association). However, in the event of a

subsequent modification during the company's life, the fixed fee of 10,000 FCFA applies; etc.

Acts exempt from the formality of registration:

▪ The employment contract between the employer and the employee, as well as the certificate of
employment issued to the employee at the end of the termination of the contractual relationship.

Reporting obligations

The time limits for registering documents and/or transfers and paying all related duties vary according to their
nature, as follows:

- Acts of enforcement agents and others with the power to make exploits and minutes: 10 days.
- Deeds of public sale of movable property: 15 days.
- Judicial documents drawn up in minutes: 30 days.
- Documents passed abroad relating to services, movable and immovable property located in the Congo or
used in the Congo: 30 days;
- 3-month period applicable to:
• Testament
• Private deeds transferring ownership or usufruct of immovable property
• Farm leases or leases, sub-leases, assignments and subrogations of leases, commitments of property
• Transfers between the living of ownership or usufruct of immovable property
• Verbal rentals of immovable property

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 • Deeds of assignment of a right to lease
• Transfer of business or clientele
- Private deeds issued abroad relating to immovable property located in the Congo: 6 months.
- Declarations of heirs, domes, or legatees of property due or transmitted by death:
• If death occurred in Congo: 6 months
• If death occurred outside Congo: 1 year

- Private deeds issued abroad containing synallagmatic conventions: at any time.

In general, the registration of the above acts/transfers is made either at the Registration, Estates and Stamps
Office (EDT) of the place where the property concerned is located or the place where the act has been made, or
at the office of the place of domicile or residence of one of the Contracting Parties.

3.7. Value Added Tax (VAT)

Scope

Natural or legal persons, including public authorities and bodies governed by public law, which carry out taxable
transactions for consideration, habitual or occasional, and independently, are subject to VAT.

❖ It should be noted that legal persons governed by private law are automatically subject to VAT,
regardless of their annual turnover.
Natural persons, on the other hand, are only liable for VAT when their turnover excluding tax is higher
than the threshold of 100,000,000 FCFA, except in cases of liability by option.

Transactions carried out during an economic activity carried out for consideration are taxable for VAT purposes.
Economic activities are understood to mean all activities of production, import, provision of services and
distribution, including mining, agricultural, forestry, artisanal activities, and those of real estate transactions carried
out by professionals in the real estate, liberal professions, or similar professions, and more generally all
transactions not expressly excluded from the scope of VAT.

To be subject to VAT in the Republic of Congo, transactions must be carried out in Congo, even when the domicile
of the natural person or the registered office of the real debtor is located outside the limits of the territory of Congo.

Therefore, a case is deemed to be made in the Congo:

- If it is a sale, when it is made on the terms of delivery in Congo.

- In the case of the provision of services, when the service rendered, the right transferred, or the object
leased are used or exploited in the Congo.

Plate

The taxable amount for VAT shall consist of any sums, securities, goods or services collected in return for the
taxable transaction, including subsidies and all costs or levies of all kinds relating thereto.

• Deductions

Input VAT charged to the price of a taxable transaction, necessary and allocated to the operation of the taxpayer's
activity, is deductible from the tax applicable to that transaction for taxable persons registered and subject to the
real regime.

VAT charged on the elements of the price of a taxable transaction is deductible in the month to which it relates.
However, the right to deduct may be exercised until the end of the tax year following that in which VAT became
chargeable.

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Rate

VAT rates are applicable to both locally produced and imported goods and services. Additional VAT cents included
at the general rate apply to local and/or imported goods.

The rates are as follows:

▪ Standard rate of 18.9%, applicable to all taxable transactions.

▪ Reduced rate of 5.25%, applicable to certain everyday consumer goods listed by law, as well as gas oil,
lubricants imported from Cameroon by forestry companies established in Congo, the sale of cement,
glass products manufactured in Congo.
▪ Zero rate, applicable to exports of taxable products, international transport and their accessories, local
sale of debited timber.

Reporting obligations

• Generating event

It consists of:
▪ The delivery of goods and merchandise, about sales, exchanges, and contract work.
▪ The execution of all or part of the services and works about the provision of services and real estate
works.
▪ The act of transfer of enjoyment or ownership, or transfer of ownership for real estate transactions carried
out by real estate developers.
▪ Receipt of the price for other taxable transactions.
▪ Release for consumption in the case of imports and petroleum products.

• Due

It intervenes:

- For sales and deliveries of goods, when the chargeable event is realized.
- For the provision of services, real estate works, suppliers of the State and public entities, when collecting
the price, advances or advances.
- For real estate transactions, the eligibility occurs on the date of each due date.
- For imports and petroleum products, at the time of registration of the declaration of release for
consumption of the goods.
- For leasing operations, at the maturity of interest or rents.
- For foreign suppliers, including central purchasing bodies of groups of companies, to invoicing.

Any person liable for VAT is required to repay it no later than the 20th of the month following that in which it
becomes due.

4. Customs duties / Special tax regimes

4.1. Customs duties

➢ To The Amount

The rate of customs duty applicable to products from third countries imported into the CEMAC varies according
to the tariff type of the goods:

▪ Category I: Basic necessities: 5%;

▪ Category II: Raw materials and capital goods: 10%;
▪ Category III: Intermediate and miscellaneous goods: 20%;
▪ Category IV: Everyday consumer goods: 30%.

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 Other rather fixed rates complement these import duties and taxes.
These include:

▪ From the Community Integration Tax (TCI): 1%. It applies to imports from non-CEMAC countries
and released for consumption in Congo.
▪ From the Computer Fee (RDI):
- 2%, applicable to the importation of goods under the ordinary law procedure.
- 1%, applicable to the subscription and regularisation of suspensive arrangements, other than
Community and international transit.
- 0.5%, applicable to goods in Community and international transit.
▪ Ohada sampling: 0.05%. It applies to imports from countries outside OHADA and released for
consumption in Congo.
▪ Community contribution to integration (CCI): 0.4%. It applies to goods imported outside CEMAC,
as well as from all other sources of financing.
▪ Value Added Tax (VAT): 18% plus 5% for CAD, i.e., 18.9%.
▪ Excise duty (AD): Variable rate depending on the nature of the imported good.
▪ The Advance Payment on Various Taxes (ASDI), if applicable: 3% of the value retained by the
customs services for the collection of duties and taxes.
▪ Fee collected by the Congolese Maritime Transport Company (SOCOTRAM) liquidated on at
least 40% of the maritime traffic rights (cargo on board transported):
- €3.658/tons or m3 on general goods including timber and minerals.
- EUR 1.829/tons or m3 on hydrocarbons.
▪ Participation commission collected by the Congolese Shippers' Council (CCC):
- €0.925/tons or m3 on general goods including timber and minerals.
- EUR 0.686/tonnes or m3 on hydrocarbons.

To determine the basis of calculation for imports from a non-CEMAC country, duties are assessed according to
the customs value or the CIF value.

The customs value of imported goods is their transaction value, i.e., the price actually paid or payable, to which
various elements are added or subtracted as follows, if they can be distinguished and quantifiable.

➢ Export

In accordance with the customs legislation in force, goods of Congolese origin or not are freely exported, including
raw products, soil, and subsoil of congo.
The rates of customs duty, levied on the departure of goods from the national territory, applicable to non-wood
products are as follows:

▪ General rate: 2%.

▪ Specific rate: 4%, applicable for the export of:
- Rough diamond and other rough, precious metals.
- Resin and other exudates extracted from trees in natural and plantation forests.
- Crude palm oil.
- Fish meal;
- Maize.
▪ From the computer fee: 2%, applicable to the export of goods to the ordinary law regime.
▪ Fee collected by the Congolese Maritime Transport Company (SOCOTRAM) liquidated on at
least 40% of the maritime traffic rights (cargo on board transported):
- €3.658/tons or m3 on general goods including timber and minerals.
- EUR 1.829/tonnes or m3 on hydrocarbons.
▪ Participation commission collected by the Congolese Shippers' Council (CCC):
- EUR 0.610/tons or m3 on general goods including timber and minerals.
- EUR 0.550/tonnes or m3 on hydrocarbons.

On export, the value to be declared is that of the goods at the point of exit from the Congolese customs territory,
increased, where appropriate, by transport costs to the border, but not included in the amount of exit duties and
internal taxes.

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However, the following are exempt from the exit duty:
- Cement produced in Congo and other processed products of Congolese origin resulting from
the working or processing of products of Congolese origin and/or products of third origin.
- Crude oil and crude oil.
- Samples of crude hydrocarbons.
- Cores and geological samples;
- Oil and chemical samples.
-
4.2. Taxation of hydrocarbons

➢ Tax
The rules of assessment, recovery, control, sanction, prescription, and litigation in tax matters applicable to the
oil sector are those set by the General Tax Code, except for special provisions of the Hydrocarbons Code.

Admittedly, the Finance Law for 2021 introduced some adjustments, as regards withholding tax on interest on
loans (see paragraph 1.4 above), a single payroll tax (see paragraph 2.1 above), the contribution of the licence
(see paragraph 3.2 above), the occupancy tax on premises for commercial use (see paragraph 3.5 above).

However, oil companies are subject to the tax on transfers of funds, built and unbuilt property taxes, registration
and stamp duties under the conditions listed in the CGI. These companies are also subject to the tax on the
income of securities under the conditions of common law applicable locally, in the absence of tax treaties signed
with Congo.

Similarly, oil companies are subject to corporation tax (IS) calculated at the rate defined in accordance with the
General Tax Code (CGI) and included in the oil contract or, as part of a CPP (production sharing contract), paid
on a flat-rate and discharge basis by remitting to the State its share of oil profit.

About value added tax (VAT), it should be noted that oil activities carried out in the Congo fall within the scope of
VAT. However, transactions related to oil activities carried out by or on behalf of oil companies are, as the case
may be, either exempt from VAT and any tax based on turnover or invoiced free of VAT and additional cents.
Operations that do not constitute petroleum activities remain subject to the ordinary law regime.

The VAT paid by companies operating in the oil sector constitutes a refundable tax credit under the conditions
and deadlines defined by the regulatory texts in force.

➢ Customs procedure

1. In the prospecting, exploration or research phase, all petroleum equipment and products listed in Annex II of
Act UDEAC 2/98- DEAC-1508-CD-61 of 21 July 1998 imported, benefit from total exemption from duties,
import taxes. However, they remain subject to the computer fee.

These materials and equipment, when imported temporarily for oil operations, are eligible for the Normal
Temporary Admission (ATN) regime with a guaranteed waiver.
For materials, equipment, and consumables, not listed in Annex II to the abovementioned UDEAC Act but fixed
on a list by regulation, imported during the prospecting, exploration or research phase, the reduced rate of 5% of
the customs duty, the computer fee and Community taxes shall apply.

On the other hand, equipment not listed in Annex II to the UDEAC Act, or on the lists laid down by regulation, is
subject to the ordinary law regime.

2. In the exploitation or production phase, materials, equipment, and consumables not referred to in Annex II to
the above-mentioned UDEAC Act 2/98, but covered by the lists laid down by regulation, intended and used
for the production, storage, processing, transport, exploitation and processing of hydrocarbons, benefit from
the reduced rate of 5% and are subject to the computer fee and Community taxes.

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 At the same time, these materials, when imported temporarily for exploitation or production work, benefit from the
Normal or Special Temporary Admission regime, in accordance with the mandatory provisions of the CEMAC
Customs Code.

However, materials, equipment and consumables not covered by the list fixed by regulation are admitted to the
ordinary law regime.

4.3. Taxation of mines

Presentation

The tax provisions applicable to the mining sector are taken both from Law No. 04-2005 of 11 April 2005 on the
Mining Code, by means of articles 149 et seq., and from the various establishment agreements signed between
the mining company and the Republic of Congo. Holders of an operating permit may benefit from a special tax
and customs regime, laid down on a case-by-case basis in the establishment agreement.

Similarly, holders of a mining title for prospecting or researching mineral or fossil substances are eligible for the
benefits provided for in the Investment Charter.

In addition, materials, supplies, machinery, equipment, spare parts, and commercial vehicles intended directly
and definitively in the context of mining operations by holders of an operating permit are exempt from all import
duties and taxes, except for the computer fee.

Where such materials, materials, supplies, machinery, equipment, and commercial vehicles may be re-exported
or disposed of after use, they shall be declared to the temporary importation procedure under suspension of import
and export duties and taxes, except for the computer fee.

However, the elements of the taxation of mining and quarrying operations include, in addition to the taxes and
duties of the General Tax Code, in particular the IS (corporate income tax) at the rate provided for by the CGI, the
following duties and taxes:

- Fixed rights, concerning the allocation, renewal, transfer, or transfer of mining titles.
- The surface royalty, fixed in relation to the area of the mining title and the period of validity or renewal
thereof.
- The mining royalty, the rate of which applies to the market value "tile mine" and fixed according to the
mineral or fossil substances extracted;1
- The para-fiscal tax on building geo-materials, used for the reconstitution of deposits.

1 The mine tile is defined as a whole comprising the mine or quarry and its ancillary facilities, the latter of which may be distant
from the mine or quarry..

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Our Firm Worthy Advisory is ready to assist you in the liquidation, declaration, and payment of all your Taxes and
in all your procedures and formalities in Legal matters in the Republic of Congo.

For any questions related to this document, we remain ready to answer you via the contact details below:
T : (+242) 068 520 838 / (+242) 050 382 642
Email : contact@worthyadvisory-cg.com
PO BOX : 5019 Pointe Noire
Address: 573, Avenue Bitelika Ndombi, Route de l'Aéroport, Pointe Noire – Republic of Congo

Joseph Junior HABITAT

Cline Jordan MAVOUNGOU BAYONNE
(Country Manager)
(Tax & Legal Consultant)
T : (+242) 222 94 04 55
T : (+242) 222 94 04 55
M : (+242) 06 852 08 38 / 05 037 72 57
M : (+242) 05 038 26 42
E : joseph.habitat@worthyadvisory-cg.com
E : cline.bayonne@worthyadvisory-cg.com

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