INDIVIDUAL TAXES
GENERAL NOTE
The information in this entry is current as of January 1998. For subsequent developments consult the contact listed above.
TERRITORIALITY AND RESIDENCE
Persons domiciled in Congo are subject to personal income tax(impot sur le revenu des personnes physiques)on their worldwide income. Persons domiciled outside Congo are subject to withholding tax on earned income sourced within the country.
Habitual residents are those persons who own a dwelling or rent for at least one year in Congo, have their principal place of residence there (for more than 183 days) or, after leaving Congo, continue to be paid by the employer for whom they worked there.
GROSS INCOME
Employee gross income/Taxable income includes all cash remuneration, including living allowances, housing allowances and bonuses. Benefits-in-kind such as housing, electricity and water are taxed according to a schedule of deemed values as follows(also see “Deductions” below).
% OF
BASIC SALARY
Housing………………………… 20
Household…………………………7
Water, electricity…………… 5
Food………………………………25
Income earned in Congo by nonresidents is subject to withholding tax at the
rate of 20%.
Capital gains and investment income/Capital gains(on building and , under certain conditions, shares) are subject to personal income tax. The tax code grants exemptions for reinvestment of specified gains in the country.
Dividends and interest are subject to impot sur le revenu des valeurs mobilieres(IRVM) at 20%(22% for director's fees), withheld at source. This income is also included in and taxed as ordinary income, but IRVM paid is creditable in determining income tax (IRPP) due.
Certain savings account interest and any revenue from a local Credit Agricole bank are tax exempt.
DEDUCTINS
Business deductions/Reimbursements of business expenses are nontaxable if done at cost price. Allowances for business expenses(i.e., lump sums paid to an employee for professional expenses) are nontaxable if they areconcerned with and are used for professional needs. The total amount of
nontaxable allowances should not exceed 15%of taxable income, allowances included. This allowance deduction is applicable only to salary and wageincome.
Non-business expenses/Loan interest(except on an expatriate's foreign home)and alimony payments are deductible from general income(all revenues)or from salary and wage income(if this in the only kind of revenue earned in
Congo). Mandatory annuity payments are also deductible.
A standard reduction of 20% of employee taxable revenue(taxable gross revenue less social security and retirement fund contributions) is applicable to salary and wage income.
Personal allowances/The number of the taxpayer's dependents is taken into account in the personal income tax schedule(see “Tax rates” below).
TAX CREDITS
IRVM paid is deductible from income tax (IRPP) due on personal general income. IRPP withheld on salary and wages is also deductible/
OTHER TAXES
Social security taxes/Employers pay 18.385% of gross salary to the CNSS(Social Security Organization). For retirement fund contributions, 2.40% of an employee's gross salary is withheld at source and paid to the CNSS. Taxable salary includes salary plus deemed value of in-kind benefits.
This withholding is deductible in determining an individual's taxable income.
Local taxes on income/There is a regional income tax (taxes regional) amounting to from CFAF1,000 to CFAF1,200.
TAX ADMINISTRATION
Returns/Husbands and wives must file joint returns. When a married woman receives a salary, she must file a separate return.
The total taxable income is divided into the number of shares, which reflects the family status of the taxpayer and the number of dependents the taxpayer supports. Dependents are children under21 years of age or invalids (no age limit); students between the ages of 18 and 25 may be claimed as
dependents.
Employers must file monthly salary tax returns showing personal income tax withheld at source and the computation of the payroll tax. Returns are based on the calendar year. The return, which should be filed before March 1, is for the preceding year. This return is an informational filing; there
is a later assessment.
1. Two provisional advance payments, due on January 31 and April 30, each representing 33%of income tax paid for the previous year
2. Balance due in comparison with tax payable for the current year is to be paid after notification is received.
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