Chad

Individual - Deductions

Last reviewed - 04 February 2020

Employment expenses

The following expenses are deductible from employment income for Chad PIT purposes:

  • Certain payments made by the employer for pension and retirement purposes, limited to 2% of the employee's gross salary.
  • The employee's social security contributions (see the Other taxes section for more information).

Personal deductions

The following charges are particularly deductible from total income where they are not already included in the calculation of each category of tax:

  • Interest on loans and debts incurred by the taxpayer for real estate investment.
  • Arrears of compulsory or free annuities paid; such arrears may be deductible from the total income of taxpayers up to a sum of XAF 600,000 annually. No supporting documents are required for payments within this ceiling.
  • The alimony paid under a court decision in cases of separation or divorce.
  • The insurance premiums are deductible from taxable profits for the part incumbent upon the transactions made in Chad:
    • the insurance premiums incurred on behalf of the company if the risk materialises and leads directly and automatically (on their own) to a decrease in net assets
    • the insurance premiums by themselves constitute an operating expense, and
    • the health insurance premiums paid to local insurance companies for the benefit of local staff when the reimbursements of expenses for the benefit of the same persons do not appear in the deductible charges.

Personal exemptions

A standard deduction of 40% is no longer applied to salary income. This exemption has been cancelled by the 2018 financial law.

Business deductions

Expenses related to industrial, agricultural, and other commercial income are combined with the other deductions in order to determine the annual amount of PIT.

Losses

Losses arising from the normal business activities of an individual are deductible and may be carried forward for up to three years.

Carryback of losses is not permitted.