The Republic of Congo’s Financial Law for 2025, promulgated as “Law No. 47 – 2024” on December 20, 2024, introduces new tax measures and compliance requirements. These changes impact businesses across multiple sectors and require strategic adjustments to remain compliant.
Corporate income tax rate increase
The corporate income tax rate has increased from 28% to “30%.” This move aims to boost fiscal contributions while retaining incentives for microfinance, education, mining, and oil exploration. Businesses may need to review financial strategies to manage operational costs.
Digital transformation in financial reporting
Companies must now submit financial statements electronically. This shift modernises compliance but requires investments in digital tools and training.
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Stricter Tax Sanctions and Compliance Measures
Stronger penalties apply for late filings and incorrect declarations. Fines now reach “10,000,000 CFA francs,” making timely and accurate reporting essential.
Institutionalisation of hierarchical recourse in tax disputes
The law formalises an existing appeal process. Taxpayers can request a review by a superior officer of the inspecting auditor, suspending tax collection until re-examination.
VAT adjustments and exemptions
Certain items, including mineral water, butane gas, and photovoltaic panels, are now VAT-exempt. However, higher VAT rates on agricultural inputs could increase costs for farmers.
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Mandatory use of Certified Electronic Invoicing System (SFEC)
Businesses must use the “SFEC” system for transactions. Non-compliance incurs a “50,000,000 FCFA” fine, and VAT on non-compliant invoices will not be deductible.
Excise duties on tobacco, alcohol, and sweetened beverages
Excise duty rates have increased for these products, aligning with public health priorities. This may affect consumer behaviour and market dynamics.
How CLG can assist businesses
Legal and tax experts at CLG provide compliance solutions, strategic tax planning, and workshops to help businesses adapt to the changes.
The 2025 Financial Law presents challenges and opportunities. Companies must take proactive steps to align with the new regulations to ensure continued success.
