Republic of Congo

Click here to see a comprehensive summary of jurisdictional tax measures and government reliefs in response to COVID-19.

• Lockdown measures are applicable from 31st march 2020.
• There is no official recommendations from the government but many companies incite their employees to work from home.
• However, some activities such are bank continue to work in keeping with health measures implemented by the government.
• Important: In a notice dated 31st March 2020, the Director of the Social Administration, Pointe-Noire (f.n CNSS) specifies that their office are still open from Monday to Friday.
• Thus, we conclude that companies should still comply with their social obligations despite lockdown measures currently applicable.
• Non-application of penalties for social declarations in March, made after the statutory deadlines.

Main sources of information

• Notice no 0045/20/DDK/PN of the Director of Social Administration, Pointe-Noire (f.n CNSS) dated 31st March 2020

• Creation of a fund (XAF 100 Billions) in order to help companies and vulnerable population.  No further details communicated as of 31st  March 2020.
• Issuance of treasury bills and bonds to boost government budget revenue.
• Free water and electricity for all households during the confinement period.
• Financial aid of 4 billion FCFA granted to households and people experiencing poverty.

Main sources of information

• Statement of the Congolese President on COVID-19 dated 28 March 2020.

Tax Measures and Customs measures (Source : Statement of the National Coordination for COVID-19 of April, 10th 2020)

• Suspension for three (3) months, starting in April, of all controls initiated in companies by public administrations (IG, IGE etc.) as well as those initiated by organizations under the authority of local authorities. Are not concerned, controls related to the fight against expensive life and security.
• Adjustment of tax obligations applicable to companies:
  • Non-application of penalties for tax declarations for March, made after the statutory deadlines.
  • From April 1, 2020 suspension for two (2) months, all tax audits including on-site inspections or documentary checks, general accounting checks. As a result, all response or prescription periods are postponed accordingly. If necessary, this period may be extended depending on the evolution of the health emergency situation.
  • The deadline for declaring companies' financial statements has been extended to August 25, 2020.
  • Postponement to August 25, 2020 of the payment of the liquidation balance of corporate tax and IRPP category BIC for 2019. For 2019 corporate tax, possibility to pay the liquidation balance according to a monthly schedule to be settled no later than December 31, 2020.
  • For indirect taxes and taxes due by third parties with monthly payment for which the company or the legal debtor is the collector, the payment declarations are maintained.
  • With regard to direct taxes, with the exception of the Single Tax on Wages (TUS), for which the company or the legal and actual debtor bears the charge, the deadline is extended by one (1) month from expiration during the containment period. Thus, the deadlines for the fulfillment of the declarative obligations and for the payment of direct taxes for the month of April which must take place from May 10 to 20, 2020 are postponed from June 10 to 20, 2020, and so on, until further notice.
  • Reduction of corporate tax rate for 2020, from 30% to 28%.
  • Reduction in the Flat-rate Global Tax, from 2020, from 7% to 5% of the annual turnover excluding taxes for operators selling products with free margin from 10% to 8% of the annual global margin excluding taxes for operators selling products at regulated prices and with controlled margins. These provisions are applicable to operators who keep accounts according to the Minimum Cash System (SMT).
• Exemption of 100% granted to donations made to fight against COVID-19.
• Facilitation and speed of customs clearance procedures for goods, particularly pharmaceuticals, medical equipment and basic foodstuffs.
• Non-application of inspection fees, in accordance with the 2020 Finance Act.
• Suspension of customs controls for three (3) months, starting in March, with the possibility of extension after evaluation of the health emergency situation.

Tax: Sylvain Bernasconi – sylvainbernasconi@kpmg.cd / Ursula Dutoziet – udutoziet@kpmg.cg