Congo, Democratic Republic of the

Corporate income tax (CIT) is paid on profits realised by a company or an individual that carries out any operational activity in the country.

The Democratic Republic of the Congo levies taxes on resident companies and individuals on a territorial basis (or source basis) of taxation. Foreign-sourced profits (e.g. dividends received from a foreign subsidiary) are thus exempt from CIT.

Non-resident companies or individuals that carry out an activity in the Democratic Republic of the Congo are taxable on profits they realise through permanent establishments (PEs) or fixed establishments that are located in the Democratic Republic of the Congo.

The CIT rate is 30% (including mining companies).

Minimum income tax

There is a minimum tax of 1% of the yearly turnover for companies other than micro-sized and small-sized companies (see below for the rates for micro-sized and small-sized companies).

The minimum tax applies to loss-making companies as well as companies with CIT of less than 1% of turnover. Companies that carry on business but realise no turnover in a concerned year are also subject to the minimum income tax as follows:

• CDF 2.5 million for large companies.
• CDF 750,000 for medium-sized companies.
• CDF 30,000 for small-sized companies.

Note that turnover includes, inter alia, all profits and interest received, as well as exceptional profits, in essence, any credits on the income statement that have the nature of income or gain, as well as capital gain.

Micro-sized and small-sized companies

Micro-sized companies are those whose annual turnover is less than CDF 10 million, and small-sized companies are those whose annual turnover is between CDF 10 million and CDF 80 million.

Micro-sized companies are subject to an annual lump-sum tax amounting to CDF 50,000.

Small-sized companies are subject to CIT at the following rates:

• 1% of turnover for the supply of goods.
• 2% of turnover for the supply of services.

Termination of activity without deregistration

In the event of business termination, companies pay a lump-sum amount as follows:

• CDF 500,000 for large companies.
• CDF 250,000 for medium-sized companies.
• CDF 30,000 for small-sized companies.

Tax on rental income

Rental income related to buildings, houses, offices, premises, warehouses, etc. is administered at the level of every provincial tax authority. Gross rental income is subject to tax at a flat rate of 12% in the province of Kinshasa.

In order to secure the payment of this tax, the Tax Code has put into practice a WHT system. In the province of Kinshasa, the tenant is liable to withhold 10% of the rentals paid and to remit this tax to the authority. The tax authority may challenge rentals that are not at arm's length by referring to the rental prices of similar houses.

The rent of buildings and land owned by real estate companies is subject to CIT.

Local income taxes

There are no local or provincial government direct taxes on income (except for the tax on rental income that is administered at the level of provinces).