Tax rates in Chad

Company Tax

Tax Rate For Foreign Companies

Only profits generated in Chad are subject to corporate tax.
Unless a tax treaty is into force, the profits realised by branches of foreign companies are deemed distributed in respect of each fiscal year to the persons who do not have their tax residence in Chad and so are subject to withholding tax at the rate of 20%.

Withholding tax on income of non-residents is 25%, applying to income of any legal or natural person who is not resident in the CEMAC area (i.e. Cameroon, Central African Republic, Chad, Gabon, Equatorial Guinea, Republic of Congo). The income of companies whose tax residence is in the CEMAC area is subject to 7,5% WHT.

Capital Gains Taxation

Capital gains are taxed at 20%.

Main Allowable Deductions and Tax Credits

Certain expenses are deductible, including interest paid for the depositing of funds by a shareholder within the base rate of the central bank plus two points (calculated on the basis of the share capital). If duly justified, donations and liberalities are deductible up to a maximum of 0.5% of the annual turnover, net of tax. Provisions for credit customers are deductible if judicial actions have been taken against the debtor. Fines, penalties and taxes are generally not deductible. Restaurants, hotels, receptions, and related costs are deductible up to 0.5% of the turnover.
Local social security contributions are fully deductible, whereas foreign social security contributions are deductible only within 15% of the base salary of the expatriates when related to a compulsory retirement plan.
Losses arising from normal business activities can be carried forward for up to three years, whereas the carryback of losses is not allowed.

Other Corporate Taxes

A business licence tax is paid annually by any individual or company carrying on a trade, industry, or profession in Chad. Companies in their first year of activity are exempt; for other companies the base of assessment is a determined duty based on 0.35% of turnover of the fiscal year N-2.
Employers are required to make monthly contributions of 16.5% of salaries paid to their employees (capped at XAF 82,500 per month) to Social Security Funds. Contributions for the National Professional Training Funds represent 1.2% of salaries and fringe benefits.
Certain deeds are subject to registration duties, with rates varying between 0.25% and 15%. Several stamp duties also apply.
The transfer of ownership of estates, personal property, and real property is subject to a transfer tax (rates of 3%/5%/6%/10%).
Owners or tenants occupying a building must pay an accommodation tax.
A real property tax is levied at 10% in N’Djamena and 8% elsewhere for built properties, with the rates going up to 21% and 20%, respectively, for unbuilt properties (calculated on the potential revenue of the property - exemptions apply).

Other Domestic Resources

Directorate-General for Taxation

Consult Doing Business Website, to obtain a summary of the taxes and mandatory contributions.

Tax Rate

Allowable Deductions and Tax Credits

Certain charges are deductible from total income, including: interest on loans and debts incurred for real estate investment, arrears of compulsory or free annuities paid, alimony paid for separation or divorce, insurance premiums (under certain conditions).
The social security contributions paid by the employee are deductible, as well as those paid by the employer (capped at 2% of the employee's gross salary).
Losses arising from an individual's normal business activities are deductible and may be carried forward for up to three years, while the carryback of losses is not permitted.

Special Expatriate Tax Regime

An individual with residence in Chad is subject to personal income tax on worldwide income. A non-resident individual in Chad is subject to personal income tax on the income originated from activities in Chad.
An individual is considered resident in Chad for taxation purposes if he/she has a main residence in Chad or is present in Chad for at least 183 days in the relevant calendar year.
Withholding tax on income of non-residents is 25%, applying to income of any legal or natural person who is not resident in the CEMAC area. The income of cnatural persons whose tax residence is in the CEMAC area is subject to WHT at the rate of 20%.