Verified Facts
The tax rates in Comoros range from 0% to 30% for personal income tax, with a corporate tax rate of 30% and a value-added tax (VAT) rate of 10%.
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
Comoros has a territorial taxation system, where only income earned within the country is subject to tax. However, residents are also taxed on their worldwide income, with credits available for taxes paid in other countries. To be considered a tax resident in Comoros, an individual must have a permanent home in the country, or spend at least 183 days in a calendar year within the country. The tax system is relatively straightforward, with a focus on simplicity and ease of compliance.
The tax authorities in Comoros are responsible for administering the tax system, including collecting taxes, auditing tax returns, and providing guidance to taxpayers. The tax year in Comoros runs from January to December, with tax returns due by the end of March of the following year. Taxpayers can file their returns online or in person at a tax office. The tax authorities also offer a range of services, including tax consulting and tax planning, to help taxpayers comply with their tax obligations.
Personal Income Tax
| Income Bracket (KMF) | Tax Rate |
|---|---|
| 0 - 100,000 | 0% |
| 100,001 - 200,000 | 10% |
| 200,001 - 500,000 | 20% |
| 500,001 - 1,000,000 | 25% |
| 1,000,001 and above | 30% |
| Personal income tax in Comoros is progressive, with higher income earners paying a higher tax rate. Taxpayers are entitled to various deductions and allowances, including a basic allowance of KMF 50,000, as well as deductions for mortgage interest, charitable donations, and medical expenses. Tax returns must be filed annually, and taxpayers can claim a tax credit for taxes paid in other countries. |
Corporate & Business Tax
- The corporate tax rate in Comoros is 30%, with a reduced rate of 20% for small and medium-sized enterprises (SMEs).
- SMEs are defined as companies with annual turnover of less than KMF 500 million.
- Comoros has several free zones, including the Moroni Free Zone and the Mutsamudu Free Zone, which offer tax incentives and other benefits to businesses that locate within them.
- Companies must register with the tax authorities and obtain a tax identification number (TIN) before commencing business operations.
- Companies are required to file annual tax returns, which are due by the end of March of the following year.
VAT / Sales Tax
- The standard VAT rate in Comoros is 10%, with a reduced rate of 5% for certain essential goods and services.
- Exemptions from VAT include basic foodstuffs, healthcare services, and educational services.
- Tourists can claim a VAT refund on certain purchases, including hotel accommodations and tourist services.
- Businesses must register for a VAT number if their annual turnover exceeds KMF 50 million.
For Expats & Foreign Workers
- Expats and foreign workers are considered tax residents in Comoros if they spend at least 183 days in a calendar year within the country.
- Double taxation treaties are in place with several countries, including France, Madagascar, and Mauritius.
- Expats and foreign workers are required to obtain a tax identification number (TIN) and register with the tax authorities.
- Social security contributions are mandatory for all employees, including expats and foreign workers.
- Remittances of foreign currency are subject to exchange control regulations, and must be declared to the tax authorities.
- Expats and foreign workers may be eligible for a tax credit for taxes paid in their home country.
Crypto & Investment Income
- Investment income, including dividends and interest, is subject to income tax at the applicable rate.
- Capital gains are included in income and subject to tax at the applicable rate.
- Cryptocurrency is subject to tax as a form of investment income, with gains and losses reported on the taxpayer's annual tax return.
- Taxpayers are required to declare all investment income, including cryptocurrency, on their annual tax return.