Finance Act 2026: Taxation

• The 2026 finance law introduces the possibility of obtaining the tax number online.

With it, the obligation to attach, at the request of the tax administration, a location plan.

The need to hold accurate information on the precise location of taxpayers can be understood in light of the extinguishing of the right to deduct value-added tax on an invoice issued by an individual or legal entity that cannot be found at the address provided to the tax administration or stated on the invoice.

• It also introduces the concept of the automatic assignment of the tax number by the tax administration based on the information it has.

The companies concerned:

• Those with a turnover or gross assets of 10 billion CDF or more;

• Those holding (or in which one holds) directly or indirectly the majority of the share capital or voting rights of a (or by a) company with a turnover or gross assets equal to or greater than 10 billion CDF.

Obligations:

• To make available to the tax administration agent during the first on-site verification intervention, documentation justifying the pricing policy applied with related parties located outside the DRC. 

• To submit an annual transfer pricing declaration.  

The introduction of the country-by-country profit allocation declaration for companies:

• That are required to prepare consolidated financial statements.
• That achieve a consolidated annual turnover of 850 million US dollars for the previous financial year.

Provided that:

• No other company holds control in the concerned company that would require it to prepare consolidated financial statements having the obligation in its country to make a country-by-country declaration residing in a state with no systemic failure.
• No other company of the same group resident in the DRC meeting the aforementioned conditions has submitted the country-by-country declaration.  

The penalties provided for:

• Failure to respond to a request for information or documents in case of suspicions of presumed indirect profit transfers ranges from a maximum of 250,000 CDF to 10 million CDF.

• The failure to declare within the stipulated time frame increases from 200,000 to 400,000 CDF for exempt taxpayers and nil declarations, and from 1.5 million to 3 million CDF in the case of regularisation after a formal notice. 

• The failure to file or the incomplete or inaccurate filing of the country-by-country report results in a fine of 150 million CDF, and the failure to file and an incomplete or inaccurate filing of the annual transfer pricing declaration results in a fine of 100 million CDF. 

• The administration may, for the purpose of facilitation, provide the taxpayer with the information it has on elements useful for determining the taxable profit without removing the reporting responsibility from the taxpayer. 

• Companies are required to submit to the tax administration the minutes of the general assembly approving the certified financial statements. 

• The declaration of category income from profits of industrial, commercial, real estate, and artisanal activities, from profits of non-commercial professions and agricultural operations taxable under personal income tax under the normal accounting system must be countersigned by the board or the accountant.

• Taxpayers must submit to the tax administration a list of suppliers including the identity and address of the supplier, the tax number, the amount billed excluding taxes, the value-added tax, and the total amount including all taxes. 

Establishment of three rates for VAT:

• Two reduced rates of 1% for essential goods, raw materials for the enhancement of local industry, and 5% for the sale of airline tickets on domestic air traffic.

• A zero rate applicable to exports and similar operations.

• A rate of 16% for the remainder of transactions.