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:

Benefit

Rate (%)

Comments

Accommodation

10

Domestic servants

5

For each person

Utilities(Water, Electricity, Gaz)

3

Food

25

By Person, With 60,000 XAF Maximum

Car

10

Private trip

one

Per year per person

 Some PIT highlights

  • 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 :

Revenu Scale

Rate

XAF

0 to 378.000

0%

378.001 to 1.680.000

8%

1.680.001 to 3.360.000

15%

3.360.001 to 5.040.000

28%

5.040.001 to -

40%

 Others PIT Related :

Tax

Basis

Rate

Contributor

Periodicity

Manpower National fund

Gross salary

1.1%

Employer

Monthly

Professional Training

Gross salary

0.90%

Employer

Monthly

 

Last Update: July 31st 2021

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