• Payments made by the employer in the case of breach of contract (notice allowance), excluding damages
• Benefits in kind at their real value, except for the following:
Legal family allowances (only extra-legal amount is taxable)
Housing allowance, provided the amount of the allowance is limited to 30% of gross salary
Transport allowance, provided that the amount of the allowance does not exceed the limit imposed per day
Medical care, provided that the amount is not overstated
Reimbursements of professional expenses are exempt if all of the following conditions are satisfied:
• They are used in accordance with their nature. The tax administration may require evidence of such use.
• They are not overstated in terms of the employee concerned.
• They relate to the activity of the company.
Investment income. Investment income consists of dividends and other income derived from shares, stock options, debentures or bonds issued by companies resident in the DRC. Investment income is subject to a 20% withholding tax (Impôt Mobilier) in the DRC, subject to the provisions of a double tax treaty.
Business and self-employment income. Business and selfemployment salary income is subject to IPR at progressive rates, with a maximum rate of 30%.
Directors’ fees. Directors’ fees paid by public limited liability companies registered in the DRC are subject to IPR at progressive rates, with a maximum rate of 30%.
Casual staff remuneration. The remuneration of casual staff is subject to income tax at a rate of 15%.
In the event of termination of work, the final settlement paid is subject to income tax at a rate of 10%.
Taxation of employer-provided stock options. Stock options provided to employees in the DRC are subject to IPR at a rate of 30%.
Capital gains and losses. Under the DRC tax law, only capital gains and losses realized by persons subject to corporate tax are taxable or deductible. Capital gains are subject to the normal corporate income tax rate of 30%.
Exempt income. The following types of income are not taxable to individuals in the DRC:
• Pension contributions by law
• Housing allowance, for a value not exceeding 30% of gross salary
• Transport allowance provided that the amount of the allowance does not exceed the legal limit per day
• Telephone charges (professional use)
• Home leave for assignee and family
• Business trips
• Medical charges
Deductions. Expenses incurred by an individual for medical care for the individual and his or her family are deductible.
Individuals may deduct the following contributions effectively paid to pension funds:
• Contributions by the taxpayer under a pension scheme that is mandatory as a result of an engagement of the employer or a requirement in the work agreement
• Direct contributions to obtain a pension or insurance
Individuals may not claim any other deductions.
Tax relief on remuneration. Individual taxpayers without a dependent should not claim any tax relief on their remuneration.
Rates. The total amount of IPR cannot be higher than 30% of taxable revenue. The following are the IPR rates for annual income.
The amount of IPR is reduced by an amount of 2% per dependent (limited to nine dependents).
Relief for losses. Individual taxpayers may not claim relief from losses.
Expatriates. Entities employing expatriates must pay a special payroll tax on expatriates (Impôt Exceptionnel sur les Rémunérations, or IER) at a rate of 25%. Companies operating under the Mining Code are subject to a reduced IER rate of 12.5% for the first 10 years and 25% for the following years.
IER applies only to income paid to expatriates who are subject to tax in the DRC. Nonresident individuals whose income is not taxable in the DRC because they are in the DRC under a technical services agreement are not subject to IER.
B. Other taxes
Property tax. Property tax is imposed on real property such as buildings and grounds. The owner of the property is liable for the tax.
The property tax rate varies depending on the nature of the item and the rank of the locality. The owner must sign an annual declaration, which must state all taxable items, to the tax authorities.
Inheritance, estate and gift taxes. The DRC does not impose inheritance, estate or gift taxes.
Tax on vehicles. The tax on vehicles is imposed on all types of vehicles used in the DRC. Owners of vehicles are liable for the tax.
The rate of the tax on vehicles varies each year and depends on the nature of vehicle and the province. The owners of the vehicles must buy road tax discs (annual license tags) when the tax authorities sell them.