Congo, Democratic Republic of the
Finance Law for 2021
The Finance Law for 2021 entered into force as of 1 January 2021.
The main changes enacted are as follows:
Value-added tax (VAT)
- Removal of the exemption in respect of VAT at the time of the importation of goods by mining companies.
- Details for the establishment, liquidation, declaration, and repayment of VAT on importation of goods by mining companies.
- Additional condition related to the deduction of the VAT for exports.
Corporate income tax (CIT)
- Provisions for doubtful receivables made by microfinance institutions are deductible if:
- they are made in accordance with their purpose
- they are justified by the situation of the debtor, and
- the loss is clearly specified.
- Deduction of funds allocated by companies to the National Fund against Pandemic COVID-19.
- Reduction of the time limits for claims, notification of decisions, and legal recourse, as follows:
- Initially set at six months, the time limits granted to the taxpayer to submit a claim or a legal remedy have been reduced to three months.
- Likewise, the tax administration has a period of three months to notify the taxpayer of its decision on the claim.
- Also, the tax administration can no longer apply recovery penalties in the event of tacit rejection of the claim.
- Details of the appendices to the CIT return.