Employers in Comoros have a responsibility to make social security contributions to the Caisse de Retraite des Comores (CRC). These contributions include:

Pension

Employers are required to contribute 12% of the gross salary towards the pension of their employees.

Family Allowances

A contribution of 3% of the gross salary is required for family allowances. This is shared with the employee.

Maternity Allowance

Employers are required to contribute 1% of the gross salary towards maternity allowance.

Sickness Insurance

A contribution of 2.25% of the gross salary is required for sickness insurance. This is shared with the employee.

Work Accidents Insurance

The rates for work accidents insurance vary according to the industry's risk classification.

It's important to note that employers are responsible for withholding the employee's portion of social security contributions as well and remitting the total amount to the CRC.

Other Potential Employer Taxes

Minimum Lump-Sum Tax (Impôt Minimum Forfaitaire)

Businesses are subject to a minimum lump-sum tax amounting to 1.5% of the previous year's turnover.

Skills Development Levy (Taxe de Formation Professionnelle)

Employers might need to pay a skills development levy depending on annual payroll size and other factors.

In Comoros, employee salaries, wages, bonuses, and other forms of compensation are subject to income tax. The country uses a progressive income tax system. There's a basic exemption amount on taxable income, which is approximately KMF 150,000 annually.

Social Security Contributions

Employees in Comoros contribute to the Caisse de Retraite des Comores (CRC) for various social security benefits. These include:

• Pension: Employees contribute 2.5% of their gross salary towards their pension.
• Family Allowances: A contribution of 3% of the gross salary is made towards family allowances. This contribution is shared with the employer.
• Maternity Allowance: There is no employee contribution required for the maternity allowance.
• Sickness Insurance: Employees contribute 2.25% of their gross salary towards sickness insurance. This contribution is also shared with the employer.
• Work Accidents Insurance: No employee contribution is required for work accidents insurance.

Other Potential Deductions

If an employee is a member of a union, union dues might be automatically deducted from their salary.

Deduction Process

Employers in Comoros are responsible for withholding the necessary taxes and contributions from their employees' salaries. These are then submitted to the relevant tax authorities and the CRC.

Comoros imposes a Consumption Tax on the provision of services, both locally provided and imported. The standard rate of Consumption Tax is 10%. However, certain services might be subject to a reduced Consumption Tax rate or exemptions. It's advisable to check specific service types for this.

Services Subject to Consumption Tax

Most services provided within Comoros are likely to be subject to Consumption Tax. These include:

• Professional services (legal, accounting, consulting, etc.)
• Technical services
• Repair and maintenance services
• Transportation and logistics services
• Telecommunication services
• Hospitality and tourism services
• Entertainment and cultural services

Exempt Services

There are some services that might be exempt from Consumption Tax in Comoros. These may include sectors like:

• Financial services
• Health and education services

Registration and Compliance

Businesses providing taxable services might need to register for Consumption Tax, depending on turnover thresholds. Registered businesses are required to file periodic tax returns and pay Consumption Tax to the relevant tax authorities.

The Comoros Investment Code provides a range of incentives for businesses that make significant investments and create job opportunities. These incentives include a reduced corporate income tax rate of 10% for the first five years and 15% for the next 10 years for businesses with approved investments. Companies may also be eligible for exemptions or reductions on import duties for equipment and raw materials necessary for their operations. Additionally, extensive loss carry-forward provisions are available.

Eligibility for Incentives

Incentives are offered to projects with investments exceeding a minimum threshold and meeting job-creation requirements. Priority sectors often include tourism, agriculture, fishing, and industrial development.

Special Economic Zones (SEZs)

Businesses established within designated Special Economic Zones may be eligible for additional incentives. These may include further reduced tax rates and exemptions from customs duties on goods imported into an SEZ.

Other Incentives

There are no exchange controls in Comoros, allowing for the free repatriation of profits for foreign investors. Additionally, programs may exist to offer tax benefits for businesses creating job opportunities, particularly for local youth.

Applying for Incentives

The application process for tax incentives in Comoros typically involves submitting a detailed investment project proposal to relevant government agencies. The project then needs to be reviewed and approved as eligible. This may be followed by negotiations on the specific benefits the business will receive.