This article explains the tax laws in DR Congo, reading this will help you becoming knowlegeable on the specific tax laws and rates for a LLC (SPRL) which is the most common legal entity in DR Congo.

CD taxes corporate income in a territorial basis. That means that income accrued offshore is not subject to taxation. The prevailing standard rate for offshore income, from our research, and your results may vary, is 0%. CD may have exemptions to bring in foreign earned profits accrured abroad. Taxes are high than average in DR Congo as the effective rate of taxation on a LLC (SPRL) entity is 35%. This ranks DR Congo as 168th overall with regards to CIT globally.

The VAT rate in CD is 16.00%, that ranks DR Congo as 168th when compared to value added tax rate worldwide. In terms of other taxation, an employer will contribute 9.00% to the equivalent of a social security fund and an employee will contribute 3.50%. The overall complexity of the tax system is medium. This is measured by average time to comply with a country's labor tax requirements is as it is 124hours. Contributing to this is the number of yearly labor tax payments, which is 10 in CD.

Thin cap laws aren't in effect. Thin capitalisation refers to any sort of restrictions on a business and the debt-to-asset ratios. Local-sourced dividends received by a local company are subject to a 20% income tax rate. Dividends are distributions of an earnings of the business, voted on by the board, to a particular class of shareholders.Dividends can be either cash payments, shares of stock, or other property. The capital gains rate in CD is 35%. A capital gains tax is levied on the profits that a corporation or natural person realizes when he or she sells sells a capital asset for a price that is higher than the purchase price.

The interest witholding rate is estimated at 20%. Which means that the taxman expects relevant legal entities to pay tax on at least 20% of money remitted abroad for interest payments. The dividends witholding rate is 20%. Which means that the taxman expects relevant legal entities to withold 20% of payments abroad on dividend payments. The royalties witholding rate 20%. This means that the taxman expects relevant legal entities to pay tax on at least 20% of money remitted abroad for royalty payments.

There is a tax on net wealth in DR Congo. There are no known inheritance taxes in CD. We are not aware of any widely used R&D intitiatives that provide tax incentives in this country.

The above is not tax or legal advice for your particular facts and circumstance. We are able to to refer you to an expert in DR Congo who can get you the proper advice and help you need. Click incorporate now if you are in a hurry, or press the free consultation button above.