Congo, Democratic Republic of the

Corporate - Significant developments

Last reviewed - 16 August 2020

Finance Law for 2020

The Finance Law for 2020 entered into force as of 1 January 2020.

The main changes enacted are as follows:

Measures relating to income taxes 

Strengthening the filing requirements of the CIT for small businesses

The self-filing return to be filed on or before April 30th of the year following the year in which the revenues are realised must be supported by the balance sheet, the income statement, the cash flow statement, the statement of changes in shareholders' equity and notes in accordance with the OHADA Uniform law related to the accounting.

It is also attached to the return, a summary statement of actual sales made during the previous year to natural or legal persons deemed to be traders or manufacturers.

Introduction of the new payment method for CIT instalments 

Under the law n ° 006/03 of March 13, 2003 fixing the methods of calculation and collection of the CIT instalments: “Tax on Profits”, The instalments (1st and 2nd) each represented 40% of the tax declared for the previous year and were respectively paid before August 1 and before 1st December of the year in which taxable income is realised.

The remaining tax balance (20%) to be paid at the time of the CIT filing. However, the finances law for the FY2020 amends not only the number of instalments, the applicable rate but also the deadline of its collection.

From now on, there are four (4) instalments which each represent 20% of the tax declared for the previous fiscal year and will be respectively paid before June 1st, before August 1st, before October 1st and before 1st, December of the year in which taxable income is realised.

The remaining tax balance (20%) to be paid at the time of the CIT filing.

Introduction of APAs as part of the transfer pricing

It is added to the Law n ° 004/2003 dated March 13, 2003 on the reform of the tax procedure an article 24 quarter worded as follows:

Article 24 quarter: “The companies referred to the article 24 bis above may in writing to the Tax Administration conclude a prior agreement on the method of determining intra-group transaction prices for a period not exceeding four years”.

This possibility should make it possible to secure transfer pricing for up to four years and avoid their being called into question during a tax audit of the administration. However, this is not a requirement but a possibility. 

Measures relating to customs and excise revenues 

Change of some rates of customs duties on the import of goods

Rates are lowered or raised to 5%, 10% or to 20% depending of the type of products imported.

Suspension of collection of excise duties on certain products

The levying of excise duties on household plastic necessities is suspended, except for bags and cones.