The tax year in Chad is the calendar year.
Married taxpayers are generally required to file a joint income tax return stating their worldwide income.
Prior to 1 January of each year, each employee must deposit, by using forms provided by the tax authorities, an individual declaration of all income received during the past year.
In addition to one's salaries, the employee (and family members, if applicable) must declare all income from property, movable assets, services rendered, etc.
Payment of taxes
Employers withhold payroll taxes from employees' salaries each month and pay the corresponding amount of tax to the Treasury.
The taxpayer must pay additional taxes if the instalment payments (WHTs on employment income or other income) are insufficient to cover the amount of tax due.
Tax audit process
The tax audit exercise of the Direction Générale des Impôts (Directorate General of Taxes), Chad is completed in the following manner:
Tax officials having at least the rank of an inspector and with their professional card and a copy of the audit notice perform spot checks on the accounting documents that taxpayers are required to submit.
Accounts are audited at the head office of the enterprise or at the place of its main establishment. Where this is not possible in either of these two places, the taxpayer must expressly request that it be conducted either in the accountant’s office or in the offices of the tax authority.
The operations include confronting the accounts presented with certain facts or material to control the accuracy of returns filed and to proceed, where necessary, to the establishment of the taxes and the taxes evaded.
Any taxpayer under the PIT can be audited on the overall personal tax situation. On the occasion of this control, the administration may check the consistency between, firstly, on the reported income and, secondly, on the patrimonial situation, cash position and/or elements of the lifestyle of members of the tax household.
At least eight days before the date of the first intervention, the tax administration shall send to the taxpayer a verification notice by personally delivered registered mail with acknowledgement of receipt or discharge slip to inform the taxpayer of the date of the first intervention and the possibility of getting a tax consultant of the taxpayer's choice to assist the taxpayer. It must, under pain of rejection, be mentioned in the verification notice.
In case of postponement of the original date of the first intervention, on the initiative of the tax administration, the tax authorities must imperatively send the taxpayer a notice of correction.
The taxpayer may also request a postponement of control by writing, giving reasons for his request within 48 hours of receipt of the notice. This report must be expressly accepted by the administration.
The tax administration may conduct unannounced inspections; it then sends an audit notice personally to the taxpayer, who acknowledges receipt, at the first intervention.
Where the notice bears no indication as to the taxes, duties, or years or periods of assessment, the items to be audited shall be all the taxes owed by the taxpayer for the period still due for payment. In such case, the audit is called a 'general audit'.
However, where it is specified in the audit notice, the tax administration may limit the scope of the audit to one or more taxes due on all or part of the period still due for payment or on a group of operations over a period less than one fiscal year, in which case a spot check is done.
The verification can, nevertheless, go up to one or more years beyond the prescribed period when these exercises are in deficit, as long as the deficits made under a year are carried forward and are deducted from the profits of the non-specified first year that constitute charges.
The verification can also go up to one or more years beyond the prescribed period when these exercises show a tax credit of a VAT carried over the first statement of the non-barred period.
Where the tax service intends to extend the audit to a period or a tax that is not indicated on the initial audit notice, it shall forward another notice following the same manner and deadline laid down in Article R. 13 et seq. of the General Tax Code (GTC), indicating the new period or new tax to be audited.
Where the accounts auditing or adjustment procedure require special technical knowledge, the tax authority may hire the consultants appearing on a list drawn up by Order of the Minister of Economic and Finance. Such consultants shall be professionally liable in case of damage resulting from their work.
When the accounts are kept using computerised systems, the tax administration is empowered to require, in accordance with Article L 18 of the GTC, the technical advice from experts for carrying out tests on the hardware that hosts the operation and to check:
- the accounting operating system
- all information, data, and processes that contribute directly or indirectly in the formation of accounting or tax results and the elaboration of documents mandated by the GTC, and
- the documentation, relating to analysis, programming, and the execution of processing.
The civil and military authorities lend support and assistance to Tax Officers for the exercise of their functions, whenever they are needed.
Statute of limitations
According to Article R. 33 of the GTC of Chad:
"The total or partial omissions found in the tax base, the inadequacies and inaccuracies, or the taxation errors, can be repaired by the tax administration until the end of the third year following that in which the tax or fee is payable.
Furthermore, any omission or insufficiency of tax revealed by a proceeding before the criminal courts or by a contentious claim may, without prejudice to the general period of repetitions established above, be repaired until the end of the third year following the revelation of the facts".
Topics of focus for tax authorities
Topics of focus for tax authorities include the following:
- Obligation to file a return.
- The verification of the return filed.
- Taxation of office/Arbitrary Assessment.
- The right of access to taxpayers' documents.
- Obligation to pay tax.
- Procedure for the abuse of control.
- Limiting the right of control.
- Tax collection procedure.
- Prosecution measures.