Congo, Republic of

The Finance Law for the year 2025 promulgated by the President of the Republic introduced changes to the General Tax Code and non-codified texts, the main ones of which are summarised below:

• The general corporate income tax (CIT) rate has been reinstated at 30%, reversing temporary reductions made during the COVID-19 period. Certain sectors have special rates: microfinance and private educational companies are taxed at 25%; mining, quarrying, and real estate development companies are taxed at 28%; and foreign legal entities are taxed at 33%.

• The withholding tax (WHT) system has been expanded to cover additional income types, such as commissions, rebates, and discounts paid to individuals or entities not subject to CIT, applying a 10% rate. Furthermore, substantial penalties have been introduced for those failing to withhold or remit these taxes, including fines equivalent to the unpaid amounts and a 5% monthly interest charge.
• A new 5% surcharge on business licences has been established.
• The new law mandates the use of a certified electronic invoicing system (referred to as SFEC) for all taxable transactions, aiming to modernise tax administration and improve transparency. Non-compliance results in heavy fines (up to 50 million CFA francs [XAF]) and disallows value-added tax (VAT) deduction on non-compliant transactions. VAT exemptions have been extended to include products like mineral water and locally packaged butane gas and the import of photovoltaic panels by start-ups and very small businesses. Furthermore, a reduced VAT rate of 5% was introduced for specific everyday consumer goods, diesel, lubricants (imported by forestry companies), and sales by companies in special economic zones.
• To encourage implementation of the electronic invoicing system, equipment purchased for this purpose can be fully depreciated (100%) in the year of acquisition, regardless of its expected useful life, providing a strong fiscal incentive for businesses to adopt the system.
• The excise tax rates have been revised to align with regional directives. Tobacco products now attract a 30% excise duty, alcoholic beverages and luxury items (such as perfumes and jewellery) are taxed at 25%, sugared beverages are taxed at 12.5%, and passenger vehicles (excluding new models under 3000 cc) and motorcycles face a 15% excise duty. Gambling equipment is also taxed at 25%.
• A new environmental levy is established, which is a 1% tax on non‑recyclable packaging (on customs value or ex‑factory price), to fund local‑authority household waste collection.
• The broadcasting licence fee has been repealed and replaced by an audiovisual and rural electrification fee payable by all electricity customers at a flat rate of XAF 500 per month.
• Tax rates have been defined for different categories of gambling (games of chance): physical games (categories I to III) at 10%, online games (categories I and II) at 12%, and virtual games (category IV) at 15%.
• There have been amendments to the provisions relating to exceptional land rights (cf. Law No. 17-2000 of 30 December 2000 on Finance Act for the year 2001, as amended by successive Finance Acts) and amendments to the provisions relating to duties, taxes, and charges of the land transport sector (cf. Law no. 39-2023 of 29 December 2023 on the 2024 Finance Law).