Accounting and Legal

Accounting and tax

    tax duty for businesses in Chad

  1. In Chad, the standard corporate tax rate levied on all net profits is 35% or 1.5% of turnover whichever is higher. The tax year is from 1st of January to 31st December and tax returns must be filed by 31st of March the subsequent. Late payments are subject to 2% penalty per month of delay;
  2. The standard VAT rate levied on provision of goods and services in Chad is 18%. VAT is not charged on exports in Chad;
  3. Earnings made from the sale of shares are subject to a capital gains tax rate of 40%. Earnings related to a merger are however exempted from such tax;
  4. Dividends withholding tax is levied at 20% but the participation exemption regime may exempt up to 90% of the dividends received from a 50%-owned subsidiary if the parent company and the subsidiary have their registered offices in a Central African Economic and Monetary Community;
  5. Tax losses may be carried forward for 3 years;
  6. Withholding tax levied on interest and royalties paid to non-residents is at the rate of 20%;
  7. Branches pay a standard corporate tax rate of 40% and an additional branch remittance tax is levied at 20%;
  8. Chad has signed a multilateral tax treaty on withholding tax rates with 5 countries which include Cameroon, Central African Republic, Republic of Congo, Equatorial Guinea and Gabon;
  9. Foreign exchange controls exist in Chad for financial transfers outside the franc zone, which is the monetary zone including France and its former West and Central African colonies;
  10. Healy Consultants Compliance Department will assist our Clients with i) documenting and implementing accounting procedures ii) implementing financial accounting software iii) preparation of financial accounting records and iv) preparing forecasts, budget and sensitivity analysis.

Contact us

For additional information on our accounting and legal services in Chad, please email us at email@healyconsultants.com. Alternatively please contact our in-house country expert, Mr. Paavan Chhabra, directly:
client relationship officer - Paavan