Employer Tax Contributions

Tax Type	Rate	Base
Social Security	16.5%	Gross salary (capped at XAF 500,000/month)
Apprenticeship Tax	1.2%	Gross salaries, premiums, benefits in kind
Fixed Tax	7.5%	Gross wages, salaries, allowances, pensions
Rural Intervention Fund (FIR)	XAF 40 per employee/month	Per employee

Filing & Compliance

• Social Security, Apprenticeship Tax, and Fixed Tax: Filing deadline is the 15th day of the month following salary payment, with payment due by month-end.
• Rural Intervention Fund (FIR): Payment and tax return filing are due before the month-end following salary payment.
• Late filing penalties include 1.5% to 50% interest per month, and late payment penalties are 2% interest per month on the principal amount due.

In Chad, employee tax deductions encompass various areas, including income tax, social security contributions, and allowable expenses.

Income Tax

• Progressive Rates: Income tax in Chad follows a progressive system. As of 2024, the rates range from 0% to 30%, depending on the employee's income level.
• Tax Rate Brackets (2024):
  • XAF 0 to XAF 800,000: 0%
  • XAF 800,001 to XAF 2,500,000: 10%
  • XAF 2,500,001 to XAF 7,500,000: 20%
  • Above XAF 7,500,000: 30%

Social Security Contributions

• Employee and Employer Contributions: Both employees and employers contribute to the social security system. As of 2024:
  • The total social security contribution rate is 20%.
  • Employers contribute 16.5%.
  • Employees contribute 3.5%.
• Deductibility: Employee social security contributions are fully deductible from their gross salary for income tax purposes. Employer contributions, capped at 2% of the employee's gross salary, are also deductible.

Allowable Deductions

• Pension/Retirement Contributions: Employer contributions to pension and retirement funds are deductible, up to 2% of the employee's gross salary.
• Business Expenses: Certain business-related expenses can be deducted for employees with industrial, agricultural, or commercial income. These are considered when calculating the annual income tax.
• Other Deductions: Allowable deductions also include interest on loans for real estate investment, certain annuity payments, alimony, and some insurance premiums.
• Transportation Allowance: The deductible transportation allowance is capped at 30% of the employee's basic salary, as per the 2019 Finance Law.

Non-deductible Expenses

• Foreign Social Security: Foreign social security contributions are deductible only up to 15% of the base salary for expatriates when related to a compulsory retirement plan.
• Business Entertainment: Expenses for restaurants, hotels, receptions, and similar are deductible only up to 0.5% of the turnover (net of tax).
• Expatriate Travel: Travel expenses for expatriates and their families for vacation are deductible, limited to one trip per year.

General Information

• Tax Residency: Chad-source income is taxable for both residents and non-residents if earned within Chad, with different rates for those residing within the CEMAC zone. Tax residency is determined by having a primary residence or spending at least 183 days in Chad during the calendar year.
• Withholding Tax: Employers are responsible for withholding income tax from employees' salaries and remitting it to the tax authorities by the 15th of the following month.

It's important to note: This information is current as of February 5, 2025, and might be subject to change. Consulting official government resources or a qualified tax advisor is recommended for the most accurate and up-to-date details.