LAW N°42-2025 OF DECEMBER 31, 2025, ON THE FINANCE LAW FOR THE YEAR 2026: KEY POINTS TO REMEMBER!

MAIN PROVISIONS

The budget of the Republic of Congo, as promulgated, shows a balanced budget with revenues estimated at 2,550,540,000,000 XAF and expenditures set at 2,320,167,000,000 XAF, resulting in a projected surplus of approximately 230,373,000,000 XAF.

Within this budgetary context, marked by a projected surplus and a commitment to controlling public finances, the legislature also sought to strengthen the legal and institutional framework governing the State’s commitments. Accordingly, “agreements and conventions affecting public finances that have not been approved by the Minister of Finance or ratified by Parliament are deemed null and void”.

Beyond regulating the State’s financial commitments, the 2026 Finance Law also aligns with efforts to modernize and rationalize the tax system. To this end, it introduces several reforms and adjustments to existing tax provisions, the key points of which include:

• Conventional exemptions from Corporate Income Tax (CIT), other than those expressly provided for in the Investment Charter, are now rendered obsolete;

• Clarifications are provided regarding the scope of the concept of a permanent establishment;

• The tax filing deadline is now set for the 15th of each month;

• The general Corporate Income Tax rate is set at 28%, while the rate applicable to foreign companies has been increased from 33% to 35%.

The law also implements the CEMAC directive, materialized by the division of Personal Income Tax (IRPP) into four distinct taxes:

• Business Profit Tax (IBA) at a rate of 30%;

• Tax on Income from Movable Capital (IRCM) at a rate of 15%;

• Real Estate Income Tax (IRF) at a rate of 9% for rental income and 10% for capital gains;

• Tax on Wages and Salaries, with calculation methods defined in Articles 116 to 116 I;

• The special tax on companies (TSS) and the special tax on promissory notes are repealed;

• Taxpayers are now granted the possibility to file an administrative appeal before entering the litigation phase;

• Regarding limitation periods, the period for withholding tax is reduced to three (3) years instead of five (5), while the period for registration duties is extended to ten (10) years from five (5);

• Finally, regarding Value Added Tax (VAT), the Finance Law limits cash payments to a maximum of 200,000 CFA francs and reinstates the obligation to maintain inventories for taxpayers in a structural VAT credit position.