Republic of the Congo: Tax developments in response to COVID-19
General Information
This page offers an overview of tax developments being reported globally by KPMG member firms in response to the Novel Coronavirus (COVID-19).
The content will be updated on a regular basis. However, due to the fast-moving pace of change, it may not always reflect the most current developments in a given jurisdiction. Please refer to the date of accuracy and refer to the relevant links, under additional information, for original source information.
Date accurate as of: 22 April 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.
