Chad: Direct and indirect tax changes in Finance Law 2026, including expansion of VAT framework to digital services
Effective January 1, 2026
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February 27, 2026
The President promulgated the Finance Law 2026, effective January 1, 2026, which introduces the following direct and indirect tax changes:
- Reduction in special economic zone (SEZ) tax exemptions to 50%
- Reform of tax deductions for doubtful debts
- Introduction of new professional training tax credit
- Taxation of individuals separately on income categories
- Reduced withholding tax rates on capital and rental income
- Extension of value added tax (VAT) exemptions to renewable energy, agricultural equipment, medical products, and certain food items
- Expansion of VAT framework to cover digital services, requiring both resident and nonresident platforms to collect and remit VAT
- Introduction of reverse charge mechanism for non-VAT registered suppliers
- Extension of 9% reduced VAT rate to local dairy and meat products
- Specific excise taxes on imported beverages and increased excise tax rates on polypropylene and cosmetics
- New duties on agricultural exports
- Reduced customs duties for electric vehicles
- Expansion of tax incentives for urban transport and electric mobility
- Extension of new company incentives to creative industries
- Mandatory use of standardized electronic invoices (e-invoices) for public expenditure
- Exclusive use of the e-Tax system for tax compliance
- Automated data interconnections for specified institutions
- Reduction in tax assessment claim deadline to six months
- Requirement for timely submission for professional training tax credits
- Imposition of penalties for non-compliance by digital platforms
- Enhanced obligations for mineral exporters
- Decentralization of tax on inhabited dwellings to local municipalities
For more information, contact a KPMG tax professional in Côte d’Ivoire:
Brahim Deye | bdeye@kpmg.ci