Chad

Inventory valuation

Stocks shall be valued at cost price; however, if the market price is lower than the cost price, the undertaking shall make provisions for depreciation of inventory.

Capital gains

Capital gains are taxed at 20% via WHT.

Dividend income

Dividends are taxed at 20% via WHT.

For actual recipients established in the CEMAC area (Cameroon, Central Africa Republic, Equatorial Guinea, Gabon, and Republic of Congo Brazzaville):

• 5% WHT for parent companies holding more than 25% of the share capital of the chadian subsidiary.
• 10% WHT for parent companies or shareholders (natural persons).

Interest income

Subject to international conventions, interest income that benefits a natural person or companies who do not have their real domicile or head office in Chad is subject to a WHT at the rate of 25%.

5% WHT for actual recipients established in the CEMAC area.

Royalty income

Royalty income is subject to WHT at the rate of 25% when the beneficiary is located neither in Chad nor in the CEMAC area.

Royalty incomes are deductible up to 10% of the fiscal intermediary result when these royalties are paid to a foreign related entity.

When the royalties are paid to beneficiaries located in a tax haven, the deduction of these royalties are capped to 50% of their amount without prejudice up to the limit of 10% mentioned above.

A tax haven is defined as a non-cooperative country or territory or a country or territory with a privileged taxation listed by the Organisation for Economic Co-operation and Development (OECD) and which did not enter into an agreement providing a mutual exchange of tax information with the republic of Chad.

Foreign income

Income from other countries is not liable to tax in Chad unless an international double taxation agreement (DTA) allocates the right to tax the said income to Chad.