Congo: Tax Administration issues VAT reduction to 8% for essential food items
The Congolese Tax Administration (“Direction Générale des imports“) issued clarifications of the tax measures under the 2022 Finance Law which includes the VAT provisions as follows:
- VAT exemption for fuel oil market supplies
- VAT reduction to 8% for some essential food products
- Allowing compliance expenditures to be deducted from taxable earnings of credit and microfinance institutions, as well as insurance and reinsurance firms
- Setting the percentage of deductible expenditures from taxable earnings at 50% for communication costs and 60% for entertainment costs
- Setting a penalty of CDF 1.5 million (EUR 673) for failing to submit a VAT credit by the deadline, and a penalty of CDF 500,000 (EUR 224) for failing to make a zero percent declaration
The legislation became effective on 1 January 2022.
Source: dgi.gouv.cd
