Taxes in Congo

When you expatriate to Congo, you probably wonder about the local tax system, the way you will pay your taxes, and make your income tax return. Follow the guide!

Taxation in Congo-Brazzaville

In Congo-Brazzaville, individuals (individuals) and legal entities (companies, etc.) are taxable. The term “personal income tax” is used to refer to the overall net income of an individual and a partner in a partnership (a general partnership, for example, because profits are taxed in the name of each partner). It is a mandatory tax levied at source on activities that generate income.

The following are taken into account in the calculation of the IRPP :

  • property income,
  • industrial, commercial and artisanal benefits,
  • salaries, wages, pensions and life annuities,
  • the benefits of non-commercial professions,
  • income from movable capital.

In the Congo, one person alone forms a tax household, while two married persons form a tax household with two shares. A child will add an additional half share.

Who pays taxes in Congo?

Are considered taxable by the Congolese authorities :

  • Individuals of Congolese or foreign nationality who have their tax domicile in Congo or are habitually resident there (house owners, tenants)
  • people living abroad, but continuing to be paid by the organizations to which they belonged before their departure from the Congo
  • civil servants or public officials who work in a foreign country for their income from Congolese sources
  • nationals or foreign nationals who do not have a domicile in Congo, but whose income is earned there.

Tax scale in Congo-Brazzaville

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

  • 1% to the fraction of income not exceeding 464 000 FCFA
  • 10% to the fraction between 464,001 and 1,000,000 FCFA
  • 25% to the fraction between 1,000,001 and 3,000,000 FCFA
  • 40% to the fraction between 3,000,001 and 8,000,000 FCFA
  • 45% at the fraction above 8,000,000 FCFA

Determination of taxable income

The net amount of the income categories as well as all cash and in-kind benefits are taken into account. For example:

  • housing is valued at 20% of the gross salary
  • domestic and custodial services – 7% of gross pay
  • water, lighting and gas ‘ 5 % of gross salary
  • car ‘ 3% of gross salary
  • food – 20% of gross salary

The net taxable income is the amount paid and benefits granted after deduction of deductions made by the employer and social security. A further deduction of 20% is applied to the net amount obtained.

Exemptions

The following are considered to be tax-exempt :

  • persons whose net taxable income does not exceed the guaranteed minimum wage
  • Ambassadors and diplomatic agents, consuls and consular officers of foreign nationality paid within the framework of their function, and provided that their country of origin proceeds in the same way with seconded Congolese diplomatic personnel

 Good to know :

The fiscal year in Congo-Brazzaville begins on January 1 and ends on December 31. However, it is advisable to check the fiscal calendar each year with the competent authorities.

Learn more: https://employerofrecord-africa.com/congo-brazzaville-employer-of-record-services/