Personal Income Tax (PIT)

Personal Income Tax (PIT)

Who is liable?

Worldwide incomes of Individuals who have their tax residence in CAR.

An individual is considered to have his or her tax residence in CAR if he or she meets one of the following conditions:

• He possesses a home as a principal place of residence in CAR, as owner, usufructuary or lessee
• He has CAR as principal place of stay although he has no permanent home
• CAR is his main place of professional and commercial location
• His revenues are originating from CAR

What type of activity is subjected to PIT?

• Salaried activity including benefit in kind (Tax Withheld at source)
• Land and related incomes
• Self-employed individuals (handicrafts, commercial, professional and agricultural)
• Professional ministerial officers and liberal professions
• Investment incomes (dividend, interest on loan savings accounts, etc….)
• Capital Gain

What income is subject to tax?

• Taxable income equals the difference between amounts received and expenses paid for each type of activity during the calendar year, including gains or losses from the sale of professional assets
• An abatement of XAF 600,000 is applied for interest on loans, and retirement savings plan
• Benefit in kind valued as per percentage below.
• Individuals may claim a deduction for professional expenses equal to 30% of gross salary after deduction of social contributions.

Benefit in kind rate:

• Employers must file an annual statement of salaries, remuneration, commissions dividend distributed and services providers in Y+1 for year Y activities when filing CIT tax return.
• This statement also includes commissions, brokering, commercial or other rebates, vacations, and fees paid to third parties.
• A specific statement concerns the provision of services
• Any individual must file an annual return including all remuneration received, as per a form provided by the tax office.

What are the tax regimes?

• Tax regime of CIT and PIT are as follows :

  Turnover Scale	Regime
  Less than 30 millions	Basic
  Equal or more than 30 Millions XAF and less than 100 millions	Simplified Actual
  More than 100 millions XAF	Actual Normal

• Non-salaried activities with some exemptions are subject to a minimum tax as per table below:

  Activities	Agricultural	Others
  Rate
  	0.3%	1.85%
  Fixed plank
  	300.000	1.850.000

   

What are business deductions?

Deductible expenses for commercial, professional, and agricultural activities are similar.

They include the following items:

• Costs of materials and inventories
• All expenses incurred to conduct the activity (including personnel expenses, certain taxes, rental and leasing expenses, and finance charges)
• Depreciation expenses
• Provisions for losses and expenses

PIT general Rates :

Last Update: November 27th, 2023