Taxes in Chad

The central framework is the Code Général des Impôts, supplemented by annual finance laws. Chad uses the Central African CFA franc (XAF), and French and Arabic are the official languages used in public administration. Domestic taxes are administered by the DGI; the DGDDI manages customs and indirect duties. Municipal authorities also administer property tax and housing tax, and rates can differ between N’Djamena and other areas. An individual may be treated as tax resident when the person has a home in Chad for at least one year, stays in Chad for more than 183 days, or has the centre of economic interests there. Residents generally report worldwide income, while non-residents are generally taxed on Chad-source income. Employment income is subject to IRPP, the personal income tax. The published schedule is 0% up to XAF 800,000, 10.5% from XAF 800,001 to 6,000,000, 15% from XAF 6,000,001 to 7,500,000, 20% from XAF 7,500,001 to 9,000,000, 25% from XAF 9,000,001 to 12,000,000 and 30% above XAF 12,000,000. These bands apply after the relevant deductions. Employers withhold IRPP from wages monthly, and individuals generally file an annual income declaration. Married couples generally file jointly, and an additional payment can arise when payroll withholding does not cover the final liability. Other personal income has separate treatment. Capital gains are generally taxed at 20%. Rental income is generally taxed at 15% for residents and 20% for non-residents. Dividend withholding can be 5%, 10% or 20% depending on the payment and applicable rule. Interest on claims or deposits can face 5% or 25% withholding. A payment should be classified before it is made because the rate can depend on residence, the type of income and whether a special rule applies. Companies usually fall into a turnover-based regime. The régime réel normal generally applies above XAF 500,000,000 of annual turnover, the régime simplifié generally covers XAF 50,000,000 to XAF 500,000,000, and the Impôt Général Libératoire (IGL) generally applies at or below XAF 50,000,000. Corporate income tax, called IS, is generally 35%. A minimum tax of 1.5% of turnover can apply, with a reported minimum amount of XAF 1,000,000. The normal regime generally requires monthly minimum-tax payments, while the simplified regime generally pays quarterly. Business income is based on activities or transactions carried out in Chad; foreign income and related costs or losses are generally outside the local source-based calculation. Companies generally file their IS declaration by 30 April, with an exceptional extension to 15 May. Corporate advance payments are generally due on 15 May, 15 August and 15 November. The financial year usually closes on 31 December. A newly started business can have a first accounting period of 12 to 18 months. The annual business licence, or patente, is generally 0.35% of turnover from year N-2, payable by 31 December; a newly created business is generally exempt during its first year. TVA is Chad's value-added tax. The standard rate is 18%, while a 9% reduced rate applies to specified local products such as cement, sugar, oil, soap, textiles, concrete and iron. Exports, including international transport and certain aircraft refuelling, can be zero-rated. Specific exemptions include some direct sales by primary producers, newspapers, leasing, products from the N’Djamena refinery and renewable energy. An economic operation for payment in Chad can trigger TVA even when the supplier is established abroad. Since 1 January 2025, local and foreign e-commerce platforms, including their commissions, are within the TVA framework. Platforms may need an NIF, E-Tax registration, FEN compliance and monthly TVA attachments showing invoices, customs documents, exempt transactions and exemption certificates. FEN is Chad's electronic invoicing system. Since 1 January 2023, it applies to transactions subject to IS, IGL or TVA. An invoice generally needs the NIF, a real description of the goods or services and the applicable tax rates. A system failure must generally be reported within six hours. A handwritten replacement invoice may be used in the prescribed circumstances, but records must be kept for at least ten years and the electronic replacement system must generally be restored within eight working days. A typical FEN penalty is XAF 100,000, potentially combined with twice the concealed TVA or 10% of the transaction value; repeated breaches can lead to closure for one month. A resident TVA taxpayer may claim a TVA credit within 24 months after the credit arises. Refunds can be available for an accepted credit, but the claim can fail when supporting evidence is missing, the deadline is missed or taxes remain unpaid. Fifteen percent of TVA receipts is placed in a BEAC escrow arrangement, and practical refund procedures should be checked against current administrative practice. Withholding tax applies to several payments. Wholesale and retail goods trading can attract 4%. Dividends can attract 20% for residents and non-residents. Payments to non-residents outside CEMAC can generally face 25% on interest, royalties or income, while different rates can apply to CEMAC companies and individuals. Rent withholding is generally 15% for residents and 20% for non-residents. Public procurement financed from abroad and petroleum royalties can fall under a special 12.5% rate. Treaty or CEMAC relief should be checked before applying the domestic rate. Additional domestic charges include excise duties of roughly 5% to 25%. Water can be taxed at 5%, beer and wine at 25%, and tobacco at 25%. A 20% rate can apply to perfume, jewellery, selected electronics, passenger vehicles above 1,600 cm³ and weapons. Mobile-phone turnover is subject to an 18% charge, and the Taxe Spéciale Produits Pétroliers can impose XAF 50 per litre on petrol, gasoil and Jet A1. Customs duties are administered through the DGDDI and increasingly use the SYDONIA World system and electronic payment. The customs value generally includes the value of the goods, delivery, insurance and transport. Typical rates are 5% for basic necessities, 10% for raw materials and equipment, 20% for intermediate and other goods, and 30% for consumer goods. The actual classification, exemptions and valuation documents determine the final amount. Property tax is imposed where the property is located. For built property, the rate is generally 10% in N’Djamena and 8% elsewhere; for undeveloped property, it is generally 21% in N’Djamena and 20% elsewhere. The taxable base is generally 80% of rental value, while rental value is generally assessed at 10% of market value. Rural undeveloped land can use a market-value basis of XAF 50,000 per hectare. Annual housing tax varies by construction type and location: typical amounts range from XAF 5,000 to XAF 10,000 for local construction, XAF 15,000 to XAF 25,000 for hard or semi-hard construction, and higher amounts for multi-storey hard buildings, with additional amounts per floor. Registration duties can range from 0.25% to 15%. Examples include 3% for transfers of company shares or bonds, about 10% for goodwill, leases or land, and 6% for movable property. Registration is generally due within three months. Stamp duty is commonly XAF 1,000 per page and XAF 2,000 for certain other applications. Employers generally report payroll tax at 7.5% of salary and benefits for permanent employees each month, and the FONAP training levy at 1.2% of salary and benefits for permanent and temporary employees. Reported social contributions include 16.5% for the employer, capped at XAF 82,500 per month, and 3.5% for the employee, capped at XAF 17,500 per month. The NIF is the unified tax identifier. E-Tax supports registration, declarations, payment instructions, payment, receipts and archiving. Under the normal regime, electronic payment through a bank or mobile service is increasingly required. Late registration can trigger XAF 50,000 per month, and a late online declaration can trigger 5% per month for the relevant tax. A correction can generally be filed within two months. The DGI can conduct a desk audit without advance notice, a spot check or a general verification. A formal notice generally gives at least eight days before the audit and allows the taxpayer to appoint a tax adviser. A personal audit can examine assets, cash and lifestyle. The procedure includes an exchange of observations. Deferring disputed payment requires an express request, payment of undisputed tax and 15% of the disputed amount, supporting evidence and a bank guarantee in Chad. The normal assessment period can extend to the end of the third following year. Invoices and accounts under the simplified or normal regime generally require review by a CEMAC-approved expert accountant. The DGI's risk areas include foreign technical-assistance fees, withholding on non-commercial profits, TVA on foreign services, non-deductible expenses and transfer-pricing documentation for related-party transactions. Cross-border matters require a source-country, permanent-establishment and transfer-pricing analysis. Chad applies the CEMAC framework and the revised convention on avoiding double taxation and tax evasion, effective from 1 January 2021. The analysis is especially relevant to petroleum activities, cross-border services, imports and exports, and digital platforms. Treaty or CEMAC relief may reduce a domestic withholding tax only when the conditions and documentation are satisfied. The 2026 Finance Law places additional emphasis on E-Tax, electronic payment through banks and mobile services, FEN in the public sector, electronic TVA invoicing, broader tax bases, digital tax audits, an incentive register, a DGI-Douane-Mobile interface and a DGI online-service pilot in N’Djamena. Rates, exemptions and digital procedures should be checked against the applicable current version of the Code Général des Impôts and the annual finance law before filing, payment or a transaction.