Democratic Republic of the Congo Tax Agency Clarifies Tax Measures Under 2022 Finance Law

The Congolese Direction Generale des Impots Feb. 23 clarified tax measures under the 2022 finance law. The finance law includes measures: 1) exempting VAT on fuel oil market deliveries; 2) reducing VAT to 8 percent for specific necessary food items; 3) allowing a deduction from the taxable profits of credit and microfinance institutions and insurance and reinsurance companies for compliance expenses; 4) setting the proportion of deductible expenses from taxable profits at 50 percent for communication costs, and at 60 percent for entertainment expenses; 5) establishing a 1.5 million-Congolese franc (US$751) penalty for failure to declare a VAT credit by ...