Ordinance-Law No. 13/008 of 23 February 2013 amending and supplementing certain provisions of Ordinance-Law No. 69/009 of 10 February 1969 relating to Island Taxes on Revenues

President of the Republic,

In view of the Constitution, as amended by Act No. 11/002 of 20 January 2011 on the revision of certain articles of the Constitution of the Democratic Republic of the Congo, especially in its articles 129 and 221;

Having regard to Act No. 13/007 of 22 January 2013 empowering the Government;

Revu, as amended and supplemented to date, Ordinance-Law No. 69/009 of 10 February 1969 relating to tax on income tax;

Revu l’Ordonnance-loi n° 004/2012 du 21 septembre 2012 amend et compléter certaines dispositions de l’Ordonnance-loi n° 69/009 du 10 février 1969 relative aux taxes cédulaires sur les revenu ;

On the proposal of the Government deliberated in the Council of Ministers,

ORDIN:

Article 1:

Sections 27, 29, 37, 39, 43, 43 ter A, 46, 68, 69, 70, 73, 77, 83, 84, 89 and 92 of Ordinance-Law No. 69-009 of 10 February 1969 relating to tax on income are amended and supplemented as follows:

“Article 27:

Subject to the provisions of the international conventions, professional tax shall be paid to the following income from professional activities carried out in the Democratic Republic of the Congo, even if the beneficiary does not have its head office, principal administrative institution, domicile or permanent residence:

1°) the profits of all industrial, commercial, artisanal, agricultural or real estate companies, including any liberalities and benefits granted to non-active partners in non-shared companies;

2°) the various remuneration of all persons paid by a third party, public law or private law, without being bound by a business contract, those of the associates active in companies other than by shares, or that the operator of an individual enterprise shall assign or assign to the members of his family for their work, as well as pensions, miscellaneous remuneration of directors, managers, commissioners, liquidators of companies and all persons exercising similar functions;

3°) profits, regardless of their name, of liberal professions, offices or offices;

(4) profits, irrespective of the nature, of occupations not covered by points 1°) to 3°) of this article;

5°) amounts paid in compensation for services of any kind provided by foreign natural or legal persons not established in the Democratic Republic of the Congo. »

“Article 29:

The revenues referred to in section 27.1°) to 4°) are taxable on their net amount, i.e., because of their gross amount reduced from the only professional expenses made, during the taxable period, in order to acquire and retain these revenues.

Are considered to be made during the taxable period, expenses and professional expenses that, during that period, have been paid or acquired the character of liquid debts or losses and some.

The revenues referred to in section 27 (5) are taxable on their gross amount. »

“Article 37:

In order to determine, in the case referred to in section 36, the increase in the possibility of taxing, the property or the portion of the real property given for rent, shall be deemed to have been depreciated to a maximum of

6% year, or an equivalent percentage for periods greater than or less than one year.

This provision does not apply to property credited by a specialized institution approved by the Central Bank of the Congo. »

“Article 39:

Tax exemptions may be granted under the provisions of the Investment Code or by specific laws. »

“Article 43:

These include deductible occupational expenses of taxable income:

1°) the rent actually paid and the rental charges for buildings or parts of buildings assigned to the exercise of the profession and any general expenses resulting from their maintenance, lighting, etc.

However, the rental value of buildings or parts of buildings owned by the debtor is not considered to be rented or rented;

2°) the general costs resulting from the maintenance of equipment and movable objects assigned to the operation;

3°) the salaries, wages, gratuities and allowances of employees and workers in the service of exploitation, the benefits in kind as long as they were added to the remuneration as stated in article 47, paragraph 2;

(4) the interests of capital borrowed from third parties and engaged in the operation and any similar charges, annuities or royalties relating to the operation.

Not considered as a third party, associates in companies other than shares.

In no case shall the interests of mortgage debts on any particular property for rent in whole or in part be considered deductible professional expenses;

5°) the costs of transportation, insurance, brokerage, commission.

However, the costs of commissions, brokerages, commercial or other dividends, vacations, occasional or non-pensional fees, gratuities and other awards are only allowed in deduction if justified by the accurate indication of the name and domicile of the beneficiaries as well as the date of payments and amounts allocated to each of them. In the absence of an accurate statement, the sums referred to above or their beneficiaries are added to the profits of the person who paid them, without prejudice to the penalties provided for fraud;

6°) (a) the amount of the profit distributed among the staff of the enterprise;

(b) the salaries allocated in equity companies to members of the General Council when it is justified that they correspond to normal surcharges in relation to the nature of the actual and permanent functions carried out in these societies in the Democratic Republic of the Congo;

7°) the depreciation of capital assets for the exercise of the profession as well as those of the capital assets given for rent by a Bail Credit Institution approved by the Central Bank of the Congo;

8°) the actual tax having the character of an operating charge paid within the time limit, provided that it has not been established on an ex officio basis;

9°) professional expenses relating to buildings and land leased by real estate companies. »

“Article 43 ter A:

To be allowed in deduction of taxable profits, the amortizations referred to in section 43.7° shall meet the following conditions:

1°) be practised on capital assets, including those leased by a Bail Credit Institution approved by the Central Bank of the Congo, on the assets of the company and effectively subject to depreciation;

2°) be practised on the basis and within the limits of the original value of the goods or, where applicable, of their revalued value; they cease from the time the total annuities reaches the amount of this value.

The amount of depreciation incurred in each fiscal year shall be calculated by means of a depreciation rate determined by the normal duration of use determined by the uses of each industry, trade or operation.

However, this period corresponds to that of the lease agreement in respect of property leased by a specialized institution duly approved by the Central Bank of the Congo.

3°) be actually practiced in accounting and appear on the depreciation table.

The small equipment and equipment as well as office equipment shall be allowed in deduction for the full cost of their return during the acquisition year if their value does not exceed the amount fixed by order of the Minister with Finance in its powers.”

“Article 46:

Not deductible from taxable income:

1°) expenses other than those set out in article 44, having a personal character, such as maintenance of the household, costs of instruction, leave and any other expenses not required by the exercise of the profession;

2°) taxes on income on the one hand, and on the other hand, the real tax provided that the latter does not have the character of an operating charge;

3°) the judicial or administrative fines fixed, in a transactional or non-transactional manner, of any kind, as well as the fees and expenses relating to any offences charged to the beneficiary of the income;

(4) the fortieth allocation of shares in the corporations to the members of the General Council;

5°) the expenses relating to the property given for rent, including the depreciation of the property, except where the property is leased by a Bail Credit Institution duly approved by the Central Bank of the Congo;

6°) provisions made to deal with losses, expenses or depreciations of assets, except provisions for the replenishment of mineral deposits. »

“Article 68:

Foreign natural or legal persons who engage in an activity in the Democratic Republic of the Congo are taxable on the profits made by their permanent establishments or their fixed establishments located therein".

“Article 69:

Foreign natural or legal persons are considered to have an institution in the Democratic Republic of the Congo, within the meaning of the article

68 above:

- either when they have a physical facility in the country such as an effective steering seat, branches, factories, workshops, agencies, shops, offices, laboratories,