The Draft Finance Law for the Republic of Congo (2026) has been released, introducing proposed amendments to Book I of the General Tax Code, specifically to Chapters 1 (Personal Income Tax: IRPP), 2, and 3 (Corporate Income Tax: IS), which relate to direct taxes and associated levies.
These changes are proposed and remain pending promulgation.

Replacement of IRPP with ITS:

The Personal Income Tax (IRPP) will be replaced by a category-based system. Employment income will now fall under a new tax titled Impôt sur les Traitements et Salaires (ITS), known in English as "Tax on Salaries and Wages".

The following will be subject to ITS:

• Salaries, wages, emoluments, and similar remuneration;
• Pensions and life annuities;
• All other payments made to company executives, except those expressly subject to the Tax on Income from Movable Capital.

Salaries and wages will be taxable in Congo in the following circumstances:

• When the beneficiary is domiciled in Congo, even if the remunerated activity is carried out abroad or the employer is domiciled or established outside Congo.
• When the beneficiary is not domiciled in Congo, but the remunerated activity is carried out in Congo, and the employer is domiciled or established there.

Public or private pensions and life annuities will be taxable in Congo:

• When the beneficiary is domiciled in Congo, even if the payer is domiciled abroad.
• When the beneficiary is not domiciled in Congo, but the payer is domiciled or established in Congo.

The following persons will be considered tax residents of Congo:

• Persons who have a permanent home available in Congo, whether as owners, usufructuaries, or tenants.
• Persons who, without having a permanent home in Congo, have the centre of their vital interests in Congo.
• Persons who stay in Congo for at least one hundred and eighty-three (183) days, whether consecutively or not, over any twelve (12)-month period, for the year.
• State employees posted abroad.

Exemptions from ITS:

The following income categories will be exempt from ITS:

• Reimbursements of expenses and representation allowances, provided they meet the deductibility conditions under Article 35 (of the Corporate Income Tax Code) for corporate income tax purposes.
• Transport allowances, when granted to all employees of the company.
• Severance or voluntary departure indemnities paid as part of a social plan, including notice pay or payment for accrued leave.
• Retirement pensions.
• Family-related allowances or benefits paid by the State, local authorities, or public institutions.
• Temporary allowances, benefits, and life annuities granted to victims of work-related accidents or their dependents.
• Scholarships granted by the State or local authorities.
• Pensions for injury or disability granted to persons who have served in the armed forces, to war widows, to civilian victims of war, or to their dependents.
• Life annuities paid as compensation for damages awarded by a court decision resulting in a permanent total disability that requires the victim to have the assistance of a third person to perform the ordinary acts of life.
• Death benefits.
• Salary increases resulting from the application of a correction index paid to civil servants and State officials working in diplomatic missions and consular posts abroad.
• Sums invested by the company in a national financial institution as part of an employee savings plan under a profit-sharing scheme, excluding investments made outside the national territory.
• End-of-career indemnities or retirement bonuses, up to the amount provided for in the staff regulations or the applicable collective labour agreement.

Persons Exempt from ITS:

Foreign diplomatic agents, consuls, and consular officers will be exempt from ITS if:

• Their home countries grant reciprocal tax advantages to Congo’s diplomatic and consular personnel; and
• The exemption complies with the Vienna Convention on Diplomatic Relations (18 April 1961).

However, the exemption will not extend to:

• Local staff of diplomatic or consular missions and of the representations of international organisations;
• Remuneration paid outside the scope of diplomatic or consular functions;
• Income subject to other taxes, such as the business profits tax, the tax on income from movable capital, or the tax on real estate income.

 No Tax Reductions or Incentives 

Under Article 114C, no exemption or reduction of ITS will be granted beyond the exemptions listed above.
The article specifically prohibits any tax reduction on salaries and wages as an employment or hiring incentive.

Fringe Benefits:

Benefits in kind will be assessed at their actual value. If this cannot be determined, they will be valued as follows:

• Housing: 20% of the salary (with the salary amount capped at the social security ceiling for this calculation).
• Domestic staff: 7% of gross salary.
• Security/guard services: 7% of gross salary.
• Water: 5% of gross salary.
• Electricity: 5% of gross salary.
• Gas: 5% of gross salary.
• Telephone: 2% of gross salary.
• Car: 3% of gross salary.
• Food: 20% of gross salary.

For the calculation of benefits in kind, the reference base will be the gross amount of regular pay and holiday pay, after deducting employee contributions for pension or retirement contributions and mandatory social insurance contributions.

 Furthermore, if an employer pays premiums to a collective social insurance or mutual health scheme on behalf of the employee, the benefit from those premiums is not taxable, provided that the scheme covers all employees equally.

Tax Rebates and Family Deductions:

• The previous family-dependent tax reduction (under IRPP) is abolished.
• ITS is now individualised, no deductions or rebates apply for dependents, spouses, or family status.

Tax Rates:

For the calculation of the tax, the annual net taxable salary will be rounded down to the nearest 1,000 FCFA.

The annual net taxable salary will be subject to the new progressive tax scale as follows:

• 1,200 FCFA for the portion between 0 and 615,000;
• 10% for the portion between 615,001 and 1,500,000;
• 15% for the portion between 1,500,001 and 3,500,000;
• 20% for the portion between 3,500,001 and 5,000,000;
• 30% for the portion above 5,000,000.

When the gross annual salary is below the Guaranteed Interprofessional Minimum Wage (SMIG) established by current regulations, the minimum annual tax will be set at 1,200 FCFA.

Foreign-source Income:

Subject to international treaties, the taxable base for income from foreign sources will be the amount actually received by the beneficiary, after deducting any taxes or charges already paid or withheld abroad. 

Other Taxes and Social Security Contributions:

All other taxes and Social Security Contributions remain unchanged.

Status:

These amendments are proposed and will become effective only upon promulgation of the Finance Law for 2026.