Chad

Employment income

Employment income is composed of salaries, allowances, premiums, and benefits in kind received by an employee.

When an employee is a tax resident in Chad, employment income is taxable in Chad, notwithstanding instances where the employee's remunerative activities are performed outside Chad or the employer is not established in Chad.

When an employee is not a tax resident in Chad, employment income is taxable in Chad if the employee's remunerative activities are performed in Chad and the employer is established in Chad.

Benefits in kind are taxable according to their actual value. However, the benefits in kind listed below are assessed at the base or least of the corresponding rates (as a percentage of salary) or their actual value:

• Housing: 20% (actual cost must be used if the benefit is considered luxury housing, although 'luxury' has not been defined by the tax administration).
• Electricity: 4%.
• Water: 4%.
• Vehicle: 10%.
• Food: 15% (with a maximum of XAF 75,000 per month for each person).
• Gas: 2%.
• Telephone: 3%.
• Housekeeping/guarding: 4%.

Pensions, in general, are exempted from PIT.

Equity compensation

Equity compensation is not specifically addressed in Chad's General Tax Code.

Business income

Industrial, agricultural, and other commercial income is combined with the other categories of income in order to determine the annual amount of PIT.

Capital gains

Capital gains are taxable in Chad. Their taxation depends on the duration of the possession of the goods, and the rate depends on the nature of the goods.

Capital gains realised during the transfer of corporate rights

The capital gains arising from the transfer of all or part of the social rights, by a partner, shareholder, dormant partner, or unit holder beneficiaries, to another person during the term of the company are subject to PIT at 20% of their sum, provided:

• that the individual or spouse, ascendants or descendants are, or have served, over the past five years, as a director or manager in the company and that the rights of these people in the social benefits have exceeded, as a whole, 25% of those benefits during the same period, and
• that the amount of capital gain exceeds XAF 500,000.

Capital gain of private wealth

The following are subject to taxation of capital gains realised on private wealth:

• The capital gains realised by individuals in the management of their private assets, in particular on the occasion of the sale, exchange, sharing, expropriation, of the contribution to a company or liquidation of a corporation on the movable or immovable property or on rights of any kind.
• The capital gains realised on the sale for value of securities or social rights of companies whose assets are primarily made up of real estate or rights relating to such property.

Method of taxation of capital gains

The taxable gain is made by the difference between the sale price and the market value of such property and the purchase price by the seller.

The sale price is less the amount paid by the seller at the time of this sale.

The purchase price is increased costs relating to the acquisition. Where appropriate, the purchase price is increased spending of construction, reconstruction, expansion, renovation, or improvement made since the acquisition, when they have not already been deducted from taxable income and are not like rent expenses.

A discount of 15% is made on the taxable amount of the capital gains realised during the same year after the eventual application of capital losses.

The tax on capital gains is paid voluntarily on 15 April of the year following the completion of the capital gain by the taxpayer who made the capital gain taxable at the tax office on which it depends.

Dividend income

Dividend income is combined with the other categories of income in order to determine the annual amount of PIT.

Interest income

Interest income is combined with the other categories of income in order to determine the annual amount of PIT.

Rental income

Rental income is combined with the other categories of income in order to determine the annual amount of PIT.

Exempt income

The following income items, in particular, are not liable to taxation:

• Pensions, in general.
• Special allowances for operating costs or employment, up to 15% of salary and allowance.
• Unemployment benefits.
• Severance pay and voluntary redundancy payments as part of a social plan.
• The death benefit.
• Transportation allowances when they benefit all company personnel, up to 30% of the monthly basis salary.
• The cost of holiday travel actually incurred by the taxpayer, the taxpayer's spouse, and dependants under certain limitations.
• The additional payment the company made in connection with the issuance and purchase of stock shares reserved for employees.
• The free allocation by a company to its entire staff shares or shares of its capital.
• The pay received in one's capacity as military for fulfilling one's legal service.
• For salaries of which the amount is less than the monthly minimum wage (XAF 28,000).
• Family allowances, up to a monthly ceiling of XAF 5,000 per child.
• Severance pay, as concerns the amount corresponding to compensation for damage caused by the termination of the employment contract.