Impostos al Txad

Tax Rates

Consumption Taxes

Nature of the Tax: Value Added Tax (VAT) - Taxe sur la valeur ajoutée (Local name)
Tax Rate: 18% (standard rate)
Reduced Tax Rate: A 9% reduced VAT rate applies to certain products, when produced locally (e.g. cement, sugar, oil and soap, and products of the local food industry, excluding alcohol).
Exports and their related international transportations are zero-rated. The law also provides for several exemptions, such as: sales of products that are directly made by farmers, cattle farmers, or fishermen to consumers, farming, and fishing operations; import operations and sales of newspapers and periodicals; sales of gasoil and petrol by the refining company of N’Djamena; leasing transactions, potable water, interests remunerating external loans; gambling and games of amusement; equipment and products used for the fight against HIV AIDS, malaria, tuberculosis, yellow fever, or COVID-19; interest on property loans granted by financial institutions; etc.
Other Consumption Taxes: Excise duty rates vary according to the nature of the goods, ranging from 5% to 25% of the value. They apply to several products, including cigarettes, water, beer, wine, cosmetics, and luxury goods.
A special tax applies on oil products. A fee is levied on airplane tickets for the modernisation of airport infrastructures (XAF 10,000 for economy seats, XAF 15,000 for intermediary or business class).
A levy of 0.2% applies on imports out of the African area on behalf of the African Union.
A tax applies on money transfers (not applicable to bank transfers and transfers for the settlement of taxes, duties and levies) at a rate of 0.2%. The rate is 5% for cash withdrawals made on stored communication credit.

Corporate Taxes

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.

Country Comparison For Corporate Taxation

	Chad	Sub-Saharan Africa	United States	Germany
Number of Payments of Taxes per Year	54.0	36.6	10.6	9.0
Time Taken For Administrative Formalities (Hours)	834.0	284.8	175.0	218.0
Total Share of Taxes (% of Profit)	63.5	47.3	36.6	48.8

Source: Doing Business, Latest available data.

Individual Taxes

Tax Rate

Personal income tax (work incomes)	Progressive rates from 0% to 30%
From XAF 0 to XAF 800,000	0%
From XAF 800,001 to XAF 2,500,000	10%
From XAF 2,500,001 to XAF 7,500,000	20%
Above XAF 7,500,000	30%
Capital gains, dividends and income from shares	20%
Rental incomes	15% for residents 20% for non-residents

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%.

Double Taxation Treaties

Countries With Whom a Double Taxation Treaty Have Been Signed: See the list of Tax conventions signed by Chad.
Withholding Taxes: Dividends: 20%; Interest: 0 (residents)/20% (CEMAC residents)/25% (CEMAC non-residents); Royalties: 20% (residents)/7.5% (CEMAC residents)/25% (CEMAC non-residents)
Bilateral Agreement: Chad and Spain are not bound by a Double Taxation Agreement.

Sources of Fiscal Information

Tax Authorities: Overview of Chad's tax measures in response to Covid-19
Directorate-General for Taxation
Other Domestic Resources: Ministry of Finance

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