Chad Income Tax Rates

Income taxes in Chad are progressive, up to 60%.

Personal income tax in Chad is calculated according to a schedule given by the General Tax Code. This is a progressive tax rate system and for each tax bracket, the tax rate is applied to the corresponding part of the taxable income shown in the tax table below.

Chad Individual Income Tax Rates for 2008

Annual Taxable Income (XAF)      /      Tax Rate %

XAF 0 - 300,000                                     20%
XAF 300,000 - 800,000                           25%
XAF 800,000 - 1,000,000                        30%
XAF 1,000,000 - 1,500,000                     40%
XAF 1,500,000 - 2,000,000                     45%
XAF 2,000,000 - 3,000,000                     50%
XAF 3,000,000 - 6,000,000                     55%
Above XAF 6,000,000                             60%

The annual personal income on salary income in Chad is calculated as follows:

1) The taxable income is calculated after the deduction of:
   a. Social security contributions
   b. A standard tax deduction of 40%
2) The net amount determined:
   a. Is the base of a tax credit amounting 4% of this amount
   b. Is divided by the number of tax portions, based on the family situation and the fact that the dependent persons are tax residents in Chad.
3) The amount calculated is then submitted to the above schedule and multiplied by the number of tax portions in order to obtain the final taxation. The tax credit is then deducted.

Scope of Taxation in Chad: An individual is taxable in Chad if his/her residence is located in Chad, or he/she receives income in Chad.

Chad Tax Year: Tax year in Chad is the calendar year.

Capital Gains Taxation in Chad: Capital gains are taxable in Chad, and their taxation will depend on the duration of the possession of the goods and the tax rate will depend on the nature of the goods. Some tax exemptions are provided by the General Tax Code of Chad.

Other Taxable Income in Chad: Rental income, agricultural income, industrial and commercial income, noncommercial income and movable assets income are also taxable in Chad, and must be combined in order to determine the annual amount of tax.

Social Security Contributions: Social security contributions in Chad are due both by the employer and the employee. Employer contributions are 12.5% of the gross salary with an upper limit of XAF 500,000. Social security contribution for the employee is 2% of the gross salary, with an upper limit of XAF 500,000.

Chad Corporate Tax Rate

Corporate tax rate in Chad is 40%.

Chad Property Tax: 12%

Chad Apprenticeship Tax: 1.2%

Example Chad Customs
- 5% duty on basic necessities
- 10% on raw materials and capital goods
- 20% on intermediate and miscellaneous goods
- 30% on consumer goods

Duty rate is applied on CIF.

Chad Value Added Tax Rate

Value Added Tax Rate in Chad is 18%.

The 18% Value Added Tax (VAT) is applicable to all goods except some basic commodities and goods originating in CEMAC (Communauté Economique et Monetaire de l'Afrique Centrale) countries. Customs duties vary from 0 to 30 percent.