Law No. 23/053 of 30 November 2023 introduces a new tax regime in the Democratic Republic of Congo (DRC). It builds on and amends Law No. 004/2003 to simplify tax procedures and, on the direct tax side, replaces the existing schedular system with a single comprehensive framework, substituting IBP and IPR with Corporate Income Tax (IS) and Personal Income Tax (IRPP).

The law will take effect 24 months after 31 December of the year of promulgation, meaning 1 January 2026.

 Key changes  impacting payroll:

Personal Income Tax (IRPP): 

The scope of income subject to IRPP has been broadened, particularly regarding salaries and related remuneration.

• Taxable Persons:
  • IRPP applies to both Congolese source and foreign source income.
  • IRPP is payable by any individual who has their habitual residence in DRC, regardless of their nationality or source of their income.
  • Individuals whose habitual residence is located outside DRC (non-residents) are also subject to IRPP if they receive income from a Congolese source.
• Definition of Habitual Residence
  • Individuals who have their permanent home or principal place of stay in the Democratic Republic of Congo.
  • Individuals who carry out a professional activity, whether salaried or not, in the Democratic Republic of Congo, unless they can prove that such activity is only incidental.
  • Individuals who stay in the Democratic Republic of Congo for at least 183 days, whether continuously or not, over 12 months.
• Exempt Persons:
  • International civil servants and agents of international organisations, with respect to the remuneration received and paid by those organisations;
  • Ambassadors and diplomatic agents, as well as consuls and consular agents accredited in the Democratic Republic of Congo, with respect to the salaries and benefits received in their official capacity, provided they are nationals of the state they represent, and subject to reciprocity;
  • Taxpayers are exempted from the requirement to obtain a business license (patente) in accordance with the legislation governing petty trade.

Exempt Employment Income: 

Article 69 of the law introduces specific categories of income that are excluded from IRPP:

• Alimony payments.
• Scholarships.
• Pensions, annuities and allowances granted under laws governing old-age pensions, disability or death pensions.
• The lump-sum allowance paid to military and police personnel upon completion of their careers.
• The benefits or family allowances granted to employees.
• Medical expenses supported by valid documentation
• Daily transport allowance (limits have not been amended)
• Housing allowance (limits have not been amended)

Progressive Tax Scale:

• The tax is calculated using a progressive scale based on net global income, rounded down to the nearest thousand Congolese francs.
• The rates remain unchanged under the new law.
• Other tax categories (e.g., casual workers, severance pay) are not addressed in this law and remain applicable unless repealed.

Family Rebates:

• The gross tax is reduced by 2% per dependent, up to 9 dependents.
• No rebate applies to income above the third tax bracket.

Rounding:

Under Article 150, the following rounding rules apply:

• When the final tax amount includes a decimal, that fraction should be rounded up to the next whole number. If the first decimal is greater than or equal to 5, it should be rounded to the next whole number, and if it is lower than 5, it is rounded down to the lower whole number.
• When the rounded amount includes a remainder equal to or greater than 50 CDF, it is rounded up to the next 100 CDF. When this remainder is less than 50 CDF, it is rounded down to the previous hundred CDF.

Reporting Requirements:

• Annual Tax Returns
  • Individuals must file an annual IRPP return by April 30 of the year following income receipt.
  • Employees whose income is fully subject to withholding tax are exempt from this obligation.
• Monthly Withholding
  • Employers must withhold IRPP from employee salaries and remit it by the 15th of the following month.
  • Each payment must be accompanied by a monthly declaration, even if no income was paid (marked “Nil”).
• Special Expatriate Levy
  • Employers of expatriates must pay a special levy within 15 days following the month of salary payment.
  • This also requires a declaration, even if no payment was made (marked “Nil”).

Additional Guidance

Certain aspects of the law will require further guidance and clarification. These will be communicated as soon as they become available.