Congo, Republic of

During the past year, two different laws were promulgated (although not published yet, according to the General Director of the Tax Administration, the two laws entered into force from the date of their promulgation):

• The Law No. 10-2015 of 5 August 2015 on the revised Finance Act for the year 2015, which was promulgated by the President of the Republic but has not yet been published in the official Gazette.
• The 2016 Finance Act (Law 33 dated 15 January 2016).

The following new tax measures have been introduced:

Concerning the Law No. 10-2015 of 5 August 2015 on the revised Finance Act for the year 2015

• The revised Finance Act provides for a five-year period, as of 1 January 2016, for a tax relief system for new taxpayers (enterprising, very small enterprises, and small enterprises), subject to the lump sum tax regime as follows:
  • Total exemption for the first two years.
  • 75% exemption during the third year.
  • 50% in the fourth year.
  • 25% in the fifth year.
• From the sixth year, the common taxation scheme is applicable. However, these incentives are not granted to taxpayers carrying out:
  • Brokerage.
  • Trading.
  • Import.
  • Services, except when they relate to the collection, storage, distribution, and exportation of locally manufactured products.

Concerning the tax provisions of the 2016 Finance Act (Law 33 dated 15 January 2016)

• The reduction of tax rate for the highest personal income tax (PIT) bracket, from 45% to 40% for the portion of income above 3 million Coopération financière en Afrique centrale (Central African CFA) francs (XAF).