Central African Republic legal and accounting and tax considerations in 2024

1. Corporate tax in Central African Republic is imposed at a standard rate of 30%. All legal entities must register and obtain a Tax Identification Number (NIF) and file annual tax returns by April of the year following the end of the tax year;
2. Both resident and non-resident companies engaged in agricultural activities and products are however subject to a reduced corporate tax rate of 20%;
3. Capital gains is considered as normal income and is taxed at the standard corporate tax rate of 30% and a lower rate of 20% for agricultural companies;
4. The Value Added Tax (VAT) in Central African Republic is levied at a standard rate of 19%. Companies must register for VAT and file returns on a monthly basis;
5. A 15% withholding tax is applicable on i) dividends and ii) interests paid to both resident and non-resident companies in Central African Republic;
6. A 15% withholding tax is applicable on i) royalties and ii) technical and management services fees paid to non-resident companies;
7. Employers in Central African Republic are required by law to submit 19% of their employee’s monthly gross remuneration as social security contribution;
8. Central African Republic is only signatory to two double tax treaties, with France and the Economic Community of Central African States (UDEAC) including Cameroon, Congo, Gabon, Chad and Equatorial Guinea;
9. Healy Consultants will assist the Client with i) documenting and implementing accounting procedures ii) implementing financial accounting software iii) preparing financial accounting records and iv) preparing forecasts, budgets and performing sensitivity analysis.