WHT on commerce of retail goods
A 4% WHT rate applies to natural persons and legal entities that purchase or sell wholesale or retail goods. This WHT also applies to imports.
Companies with more than one shareholder that regularly pay their taxes may apply for a suspension of payment of WHT (renewable every three months).
WHT on capital gains and dividends
WHT on capital gains and dividends is 20% and applies to residents and non-residents.
WHT on income of non-residents
WHT on income of non-residents is 25%. It applies to income of any legal or natural person who is not resident in the CEMAC area (i.e. Cameroon, Central African Republic, Chad, Gabon, Equatorial Guinea, Republic of Congo).
The income of legal persons (companies) whose tax residence is in the CEMAC area is exempted from the WHT. However, the income of natural persons whose tax residence is in the CEMAC area is subject to WHT at the rate of 20%.
WHT on personal income
The employer withholds tax on personal income every month.
WHT on income from public procurement contracts financed from outside of the country
Chad’s lowest WHT rate on income is 12.5%. It applies in either of the following two cases:
- On income of agents, consultancy firms, and corporations executing a contract within the framework of public procurement contracts financed from outside of the country.
- On income of companies working within the petroleum projects.
The WHT at the rate of 12.5% does not apply to dividends and interests, but only to royalties paid to non-residents within the petroleum projects.
The dividends paid to residents and to non-residents is subject to WHT at the rate of 20%.
WHT on interest
The interests paid to non-residents whose tax residence is outside the CEMAC area are subject to WHT at the rate of 25%, but they are exempted from WHT if they are paid to the CEMAC area’s residents.
Bonds and notes are subject to a WHT of 20% of the interests for registered bonds and of the interests for bearer participation certificates.
WHT is not applicable to interests paid to residents.
WHT on rent
WHT on rent is 15% for residents and 20% for non-residents.
WHT on rental of equipment
The rates of WHT on rental of equipment held by natural persons is 15% for residents and 20% for non-residents. The WHT applies on the total amount paid, including the major repairs, which, by nature, should be normally supported by the owner, when these repairs are supported by the tenant without deduction from the price of the rental.
WHT on interconnection expenses of mobile companies
WHT on interconnection expenses of mobile companies paid to non-resident companies is 25%.
Chad has one tax treaty with the member states of CEMAC.
WHT benefits on payments made to CEMAC residents
To avoid double taxation of incomes of CEMAC origin, the provisions of the Convention provide a principle of exclusive taxation in one country.
Regarding revenues of services, they will be taxed only in the country of location of the beneficiary of incomes (i.e. no WHT in the country of payment of incomes).
Regarding incomes from securities (dividends, interest on deposits, interest on bonds, etc.), they will be taxed only in the country of distribution (i.e. no WHT in the country of payment of incomes).