Business Environment

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In this page: Accounting Rules | Tax Rates | Intellectual Property | Legal Framework | Standards | Business Practices

 

Accounting Rules

Tax Year
The tax year is the calendar year.
Accounting Standards
IFRS Standards are required for all listed companies and companies making a public call for capital. Companies with more than 100 shareholders are required to use IFRS Standards, even if their securities do not trade in a public market (according to OHADA's Uniform Act Relating to Commercial Companies and the Economic Interest Group). Chad does not apply IFRS for SMEs standards.
Accounting Regulation Bodies
Organisation for the Harmonisation of Business Law in Africa (OHADA)
Accounting Reports
According to art. 8 of the Accounting Act of the Organisation for the Harmonization of Corporate Law in Africa (OHADA), companies must publish a balance sheet, a profit and loss account, a statement of cash flows and notes to the financial statements. All listed companies and companies making a public call for capital must use IFRS standards for their financial statements.
Publication Requirements
Annual financial statements include the Balance Sheet, the Income Statement, and Cash Flows statement, as well as the Notes to the financial statements. According to art. 23 of the OHADA's Uniform Act on the organization and harmonization of corporate accounting, annual financial statements shall be adopted no later than within four months following the closing of the fiscal year.
Professional Accountancy Bodies
Ordre National des Professionnels Comptables du Tchad (ONPCT)
Certification and Auditing
According to art. 8 of the Uniform Act on Commercial Companies of the Organisation for the Harmonization of Corporate Law in Africa (OHADA), private limited companies that meet, at the end of the fiscal year, two of following conditions are required to appoint at least one auditor: the total amount of the balance sheet is greater than XAF 125 million; the annual turnover is greater than XAF 250 million; the number of permanent staff exceeds fifty people. For private limited companies that do not meet these criteria, the appointment of an auditor is optional. Nevertheless, such an appointment maybe requested in court by one or more members holding at least one-tenth of the stated capital.
In public limited companies, supervision is exercised by one or more auditors.
Accounting News
IFAC - Accounting news on Chad

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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 Africa area on behalf of the African Union.

Learn more about Service Providers in Chad on Globaltrade.net, the Directory for International Trade Service Providers.

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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%.
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.
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.

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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 (capped at XAF 600,000 per year), 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.

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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: 20% (CEMAC resident)/25% (CEMAC non-resident); Royalties: 20% (CEMAC resident)/25% (CEMAC non-resident)

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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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Intellectual Property

Regional Organisations
Chad is a member of WIPO and of the African Intellectual Property Organization (OAPI)

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Legal Framework

Independence of Justice
Although the constitution and law provide for an independent judiciary, the rule of law and judicial system remain weak as the executive power still heavily influences the courts. Furthermore, judicial authorities do not always respect court orders. According to Freedom House, security forces often do not respect constitutional protections regarding search, seizure, and detention.
Equal Treatment of Nationals and Foreigners
Foreigners cannot always expect an equal treatment. However, according to the US Bureau of Economic and Business Affairs, foreign investors using the court system are not generally subject to executive interference.
The Language of Justice
French
Recourse to an Interpreter
It is possible to have an interpreter in Chad.
Sources of the Law and Legal Similarities
Chad has a mixed legal system of civil and customary law. The main sources of the law are the Constitution, international treaties, acts of the Parliament (with a distinction between matters for which the Parliament can set the actual rules and those for which it only determines the fundamental principles that are subsequently complemented by rules and regulations taken by the executive branch), rules and regulations of the executive branch, ordinances of the government, and customary law (applicable in communities that recognize them, provided that they are not in contrast with the law).
Checking National Laws Online
Library of the U.S. Congress
Droit Afrique - Chad

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Standards

National Standards Organisations
N/A
Integration in the International Standards Network
Chad does not have a legal framework for standards and technical regulations and is not a member of ISO.
Chad is a member of CEMACMET.
Classification of Standards
TCD
Online Consultation of Standards
ISO website - Chad standards consultation.
Certification Organisations
N/A

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Business Practices

General Information
Opening Hours and Days
Offices: Monday to Friday 8am-1pm and 2pm-5pm
Banks: Monay to Thursday 7am-1pm; Friday 7am-10.30am
 

Public Holidays

New Year's Day 1 Jan
Easter Monday 22 Apr  
Labour Day 1 May
Aïd el-Fitr 4 Jun
Independence Day 11 Aug
Aïd el-Kebir 11 Aug
Independence Day Holiday 12 Aug
Aïd el-Kebir Holiday 12 Aug  
All Saints' Day 01 Nov
Prophet Muhammad's Birthday 09 Nov  
Republic Day 28 Nov
Freedom and Democracy Day 1 Dec
Freedom and Democracy Holiday 2 Dec
Christmas Day 25 Dec
 
Holiday Compensation
If New Year's Day, Labour Day, Independence Day or Freedom and Democracy Day happen on Sundays, the following Monday is considered as paid holiday (Decree 97-413 1997-09-30 PR/MFPT of 1997).
 

Periods When Companies Usually Close

Christmas time December
 Aïd el-Fitr and  Aïd el-Kebir May vary according to lunar calendar
Ramadan During Ramadan working hours are reduced
 

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Latest Update: April 2022