On 30 December 2021, the Central Africa Republic published the Finance Law 2022.
Here is a highlight of the fiscal measures:
1. Requirement for a tax identification number for the importation of goods for resale
This provides that where goods are imported and their purpose is for resale by a natural or legal person not included in the list of active enterprises issued by the tax authority, the importer will be subject to a penalty equal to 10% of the customs value of the imported goods, with a minimum penalty of 1 million CFA francs.
In all cases, the penalty must be paid before the imported goods released from customs.
2. New code des douanes
The new Customs Code is appliable as from 1 January 2021.
3. Exemptions granted to businesses (construction works)
For companies awarded public contracts that are granted exemptions relating to construction works, these companies are required to justify every year or at the end of the construction work (if the period is less than 1 year), how the materials and equipment was used in the carrying out of the work.
The public body or ministry or government department where the work is carried out is required to inform the customs authority 3 months before the end of the construction works.
Failure to inform the custom authority with the supporting documents will results in sanctions and penalties against the importer according to the new CEMAC customs code.
4. Customs Exemption for second-hand vehicles
There is a new customs exemption for vehicles for special purpose vehicles imported within the framework of mining research or water drilling projects and construction vehicles registered as assets of public works companies in the CEMAC sub-region.
This exemption is available provided that the vehicles are temporarily imported and exported after the works are finished.
5. Amendment to the rates of the RGE for NGOs
Any international or national NGO having signed a collaboration agreement with the government is subject to the payment of a tax known as “redevance de gestion des exoneration” (RGE) at the rate of 8% of the customs value, adjusted for all assigned revenue.
The calculation of this RGE will now take into account the tax of 0.2% relating to the African Union tax.
Previously it included:
- Community Integration Tax 1%
- Fee for IT equipment 0.5%
- Levy from the Organization for the Harmonization of Business Law in Africa 0.05%
- Levy for the Central African Forests Commission 0.1%
- Community integration contribution 0.4%
- Central African shippers’ council fee 0.25%