Congo, Republic of

The Republic of Congo taxes its residents on their worldwide income and taxes non-residents on their Congolese income.

An individual domiciled in the Republic of Congo, whether of Congolese or foreign nationality, is liable for personal income tax (PIT) on one’s worldwide income. Tax treaties may exempt specific types of foreign-source income from Congolese PIT, but the exempt income is still taken into account in determining the effective rate of Congolese tax payable on the individual's taxable income. Tax is also levied on some capital gains.

An individual who is not domiciled in the Republic of Congo is liable for Congolese tax only on income from Congolese sources (including income attributed to the Republic of Congo by a tax treaty) and on capital gains from the disposal of certain assets.

In the case of dividends, interests, and royalties from Congolese sources, a non-domiciled individual's tax liability is usually settled by withholding taxes (WHTs).

On other income, such as salaries for work performed in the Republic of Congo, profits of a business operating there, and income from Congolese real estate, a non-domiciled individual is liable for PIT at the same graduated rates as a domiciled individual. The non-domiciled individual is regarded as married with no dependent if of French nationality and single with no dependent in other cases.

A non-domiciled individual who is not resident in a country that has a tax treaty with the Republic of Congo may be liable for PIT at the graduated rates on five times the annual rental value of any residence available in the Republic of Congo if this figure exceeds Congolese-source income that would otherwise be taxed at the graduated rates.

Specific rules apply for salaries for duties performed in the Republic of Congo received by foreign employees seconded to work in the Republic of Congo for limited periods.

Personal income tax rates

PIT rates are fixed at the end of the year to which they relate. The rates are applied progressively in that they increase with the taxpayer's taxable income. The rates for the tax year as reformed in the Finance Act of 2014 are as follows:

* CFA francs

Generally, the PIT rates are the same for domiciled and non-domiciled individuals. However, a tax rate of 20% is imposed on non-commercial income of a non-domiciled individual.

A tax rate of 20% is also imposed on salaries for duties performed in the Republic of Congo by foreign employees seconded to work in the Republic of Congo for limited periods.

Global flat taxation

The global flat tax is at the rate of 7% (on annual turnover) or 10% (on annual margin). This taxation regime is applicable to persons with an annual income of not more than 152,449 euros (EUR).