Verified Facts
The tax rates in Chad range from 10% to 60% for personal income, with a corporate tax rate of 40% and a value-added tax (VAT) rate of 18%.
Tax laws change frequently. Always consult a qualified tax professional for advice specific to your situation. This is a general guide only.
Quick Facts
Tax System Overview
Chad has a territorial taxation system, where only income earned within the country is subject to tax, regardless of the taxpayer's residency status. However, individuals who are considered tax residents are taxed on their worldwide income. To be considered a tax resident, an individual must have a permanent home in Chad, have a spouse or children who are tax residents, or have spent more than 183 days in the country in a calendar year.
The tax system in Chad is governed by the General Tax Code, which was introduced in 1993 and has undergone several amendments since then. The code provides for various taxes, including income tax, corporate tax, VAT, and customs duties. Taxpayers are required to file their tax returns with the General Directorate of Taxes and Property, which is responsible for the administration of taxes in Chad.
Personal Income Tax
| Income Bracket (XAF) | Tax Rate |
|---|---|
| 0 - 500,000 | 10% |
| 500,001 - 1,000,000 | 15% |
| 1,000,001 - 2,000,000 | 25% |
| 2,000,001 - 5,000,000 | 40% |
| above 5,000,000 | 60% |
| Tax deductions and allowances are available for expenses such as housing, education, and medical care. Taxpayers are required to file their tax returns by March 31st of each year, and must pay any tax due by the same date. Penalties and interest are charged for late filing and payment. |
Corporate & Business Tax
- The corporate tax rate in Chad is 40%, which applies to all companies, regardless of their size or type.
- Small businesses with an annual turnover of less than XAF 100 million are eligible for a reduced tax rate of 20%.
- Free zones have been established in Chad to encourage foreign investment, and companies operating in these zones are exempt from corporate tax for a period of 10 years.
- Companies are required to register with the General Directorate of Taxes and Property and obtain a tax identification number.
- Companies are also required to file their tax returns and pay any tax due by the end of the third month following the end of their financial year.
VAT / Sales Tax
- The standard VAT rate in Chad is 18%, which applies to most goods and services.
- A reduced VAT rate of 10% applies to certain essential goods, such as food and medicines.
- Exemptions from VAT are available for certain goods and services, such as education and healthcare.
- A tourist refund scheme is available for foreign visitors who purchase goods and services in Chad, allowing them to claim a refund of VAT paid.
For Expats & Foreign Workers
- Expats and foreign workers are considered tax residents in Chad if they have spent more than 183 days in the country in a calendar year.
- Double taxation treaties are in place with several countries, including France and Belgium, to avoid double taxation of income.
- Social security contributions are required for all employees, including expats and foreign workers.
- Remittance rules require that all income earned in Chad must be repatriated through a bank or other authorized financial institution.
- Expats and foreign workers are required to obtain a tax identification number and register with the General Directorate of Taxes and Property.
- Tax credits are available for taxes paid in other countries, to avoid double taxation of income.
Crypto & Investment Income
- Investment income, such as dividends and interest, is subject to a withholding tax of 20%.
- Capital gains tax is imposed at a rate of 20%, or is included in income tax, depending on the type of asset and the taxpayer's residency status.
- Cryptocurrency is considered a taxable asset in Chad, and gains from the sale of cryptocurrency are subject to capital gains tax.
- Taxpayers are required to declare their investment income and cryptocurrency holdings on their tax returns, and to pay any tax due on these income sources.