Corporate Tax in brief

What is corporate tax?

It is a direct tax levied on the profits realised by corporate bodies. It is levied on all such profits.

It is a tax assessed on a period of twelve (12) months, corresponding to the budgetary year.

However, companies that start their activities within six (06) months preceding the end of the fiscal year are allowed to adopt their first assessment on eighteen (18) months.

Who are the liable persons to the Corporate tax?

Those liable for corporate tax are legal entities, including:

• Limited liability companies, even when they are of sole proprietorship;
• Partnerships and financial syndicates which have opted for assessment for the corporate tax;
• Public establishments, regional and local authorities and other public law legal persons engaged in a profitable business;
• Civil societies having opted for Corporate Tax

What constitutes the taxable profit?

Taxable profit consists of revenues from operations of any kind carried out by companies during the period used as tax base, after deduction of the charges incurred by the operation.

What is the tax rate?

The corporate tax rate is 35% plus 10% as additional council surcharges.

What are the obligations of taxpayers?

Those liable to the corporate tax and the exempted persons are bound to sign a declaration of the results realised during the period used as the basis for assessment on or before the 15th March of each year.

The tax is paid in monthly instalments equivalent to 1.1% of monthly turnover no later than the 15th of the month following that during which the operations were realised. The balance must be regularised within the same timeframe as the declaration of results.

Taxable persons are bound to preserve the accounting documents under the OHADA Accounting Law.