This article provides a comprehensive overview of the 2025 corporate tax regime in Chad, including the main tax rates, assessment basis, and minimum taxation requirements. Business owners considering corporate establishment in Chad will find key details relevant for tax planning and compliance.
Corporate Tax Rate and Structure in Chad (2025)
Chad applies a flat corporate income tax rate to companies operating under its jurisdiction. The main parameters of the corporate tax regime are summarized in the following table:
| Parameter | Details |
|---|---|
| Corporate Income Tax Rate (%) | 35% |
| Tax Type | Flat |
| Assessment Basis | Corporate Profits |
| Currency (Code) | XAF (Central African CFA franc) |
| Tax Brackets | Not applicable (single rate) |
The flat rate structure means that all taxable corporate profits are subject to the same tax rate of 35% with no progressive bands applied. The assessment is based strictly on corporate profits as declared in the financial statements and tax filings.
Minimum and Surtax Provisions
Chad requires a minimum tax to ensure a base level of contributions from companies, even if their annual profits are low or nil. The key minimum tax provision for 2025 is as follows:
| Surtax Type | Rate (%) | Condition |
|---|---|---|
| Minimum tax based on turnover | 1.5% | Filed and paid monthly for companies under the normal or simplified regime |
If a company’s assessed tax on profits is lower than this minimum, the 1.5% surtax on turnover applies. This ensures a consistent tax inflow to the authorities, particularly from businesses with variable profitability or seasonal activity. The minimum tax is paid monthly by companies under both the normal and simplified regimes.
Assessment Basis and Schedule
The corporate tax in Chad is assessed on the profits generated by resident companies. Companies must calculate their taxable income on an annual basis, following local accounting and tax requirements. While deadline information and holding period specifics were not provided, it is typical for companies to align their tax payments with their fiscal year-end and local regulatory calendars.
Summary Table: Corporate Tax Data (2025)
| Aspect | Data |
|---|---|
| Main Tax Rate | 35% (Flat Rate) |
| Surtax on Turnover (Minimum Tax) | 1.5% |
| Currency | XAF (Central African CFA franc) |
| Assessment Basis | Corporate Profits |
| Applicable Regimes | Normal & Simplified |
| Holding Period Criteria | Not applicable / Not disclosed |
Please note: Current exchange rates for the Central African CFA franc (XAF) to USD as of January 2025 are approximately 1 USD = 600 XAF. Thus, a tax payment of XAF 1,000,000 would equate to approximately $1,667 (USD).
Pro Tips for Managing Corporate Tax in Chad
- Monitor monthly turnover closely to ensure timely and accurate calculation and payment of the minimum tax (1.5% of turnover), as required for companies under both normal and simplified regimes.
- Maintain clear and comprehensive financial records, as precise profit reporting is essential for correct tax assessment by authorities.
- Engage with local consultants or accounting professionals familiar with Chad’s tax environment to stay abreast of any annual updates to rates, filing procedures, or compliance standards.
- If your corporate profits are consistently low, prepare for the minimum tax obligation which may exceed corporate income tax based on net profit in some cases.
Official Resources
For further details on tax payment procedures and updates, consult the official portal of the Chadian government: gouvernementdutchad.org
In summary, Chad imposes a flat 35% corporate income tax alongside a 1.5% minimum monthly tax on turnover. Corporate profits are the principal assessment basis, and companies must remain vigilant about minimum tax requirements even in low-profit scenarios. Understanding and adhering to these requirements is essential for regulatory compliance and effective tax planning in 2025 and beyond.