On Monday, February 22, 2021 in Brazzaville, Sylvain Lékaka, Director of Cabinet of Ludovic Ngatsé, Minister Delegate for the Budget, launched the campaign to popularize tax provisions applicable during the year 2021.
This campaign is organized by the tax administration for its partners, including users, economic operators and taxpayers.
The finance law 2021 is structured around 3 axes.
First, the improvement of the tax system, inspired by the work resulting from the project to overhaul the General Tax Code (CGI) and certain adaptations.
Second, the reduction of the tax burden, taking into account the international economic situation disrupted by the Covid-19 pandemic. The government and the legislator have this issue at heart and have, in the rectifying finance law of May 13, 2020, decided to reduce the rate of corporation tax (IS) under the common law system, from 30% to 28%. For companies under the lump-sum regime, the corporate tax rate has also decreased by two points, from 35 to 33%. In addition, in this effort to reduce the tax burden, the payment of the Special Company Tax (TSS) at a rate of 2% has been abolished.
Third, the novelty of this finance law is the institution of the solidarity contribution for Universal Health Insurance Coverage (CAMU), which fills a void in the Congolese health system.
Two seemingly contradictory objectives
For the organizers, this campaign aims at both maximizing tax revenues and reducing the tax burden on taxpayers. However, this maximization is expected, as the state has set the ceiling for tax revenues at 576 billion 331 million F CFA in 2021. It is well known that taxes are the main source of revenue for the State budget. However, the State also has the obligation to lower the tax burden, taking into account the triple economic, financial and health crisis (due to the emergence of Coronavirus) which has negatively impacted the activity of corporate taxpayers. To illustrate this decrease in tax pressure, the Director General of Taxation and Estates also indicated that the patent of 2021 will be due only after the presidential election of March 21, 2021.
Hence, the need for the tax administration and its partners to exchange and discuss permanently on how they should work together to seek the optimal conditions to achieve these two objectives.
"In our capacity as guardian in this partition, I take this opportunity to remind everyone, on behalf of Mr Calixte Nganongo, Minister of Finance and Budget, that when the law is passed, it is strictly enforced. This requirement applies to everyone,"Sylvain Lékaka concluded.
The Press Office of the Ministry of Finance