Exchange

Central African Stock Exchange (Bourse des Valeurs Mobilières de l'Afrique Centrale) (BVMAC).

Current number of listed companies

5 listed companies.

Regulatory body or bodies

Commission for the Supervision of Financial Market of Central Africa ("Commission de Surveillance du Marché Financier de l'Afrique Centrale")(COSUMAF).

Principal legislation

• Regulation no. 01/22/CEMAC/UMAC/CM/CONSUMAF relating to the organization and functioning of the Central African financial market.
• UMAC dated 12 November 2003 regulating the organisation, functioning and supervision of financial markets in Central Africa
• General regulation of COSUMAF dated 15 January 2009.

Corporate Governance Code

Uniform Act of the Organisation for the Harmonisation of Business Law in Africa on Commercial Companies and Economic Interest Groups (OHADA).

OHADA Uniform Act on General Commercial Law.

Takeover / merger regulations

OHADA Uniform Act on Commercial Companies and Economic Interest Groups.

Public offers / disclosure regulations

General regulation of COSUMAF dated 15 January 2009.

Legislation

Law No 043-PR-2014 relating to competition is the relevant legislation applicable in Chad. In addition, as a member of the Commission of the Economic and Monetary in Central Africa (CEMAC), Regulation no.1/99/UEAC-CM-639 dated 25 June 1999 of Central African Economic and Monetary Community on anti-competitive business practices is in force in Chad. The National Competition Council (Conseil National de la Concurrence), which falls under the Ministry of Commerce, is the enforcer of the legislation.

Impact of regulatory regime on business

Any economic concentration is subject to prior notification of the National Competition Council.

Law applies to economic concentration where two companies in the concentration have up to 30% of the market.

Scope

The provisions of the law cover the following points:

• Free Prices;
• Anti-competitive practice;
• National Competition Council;
• Price transparency;
• Economic concentration; and
• Repression.

Corruption Perception Index rank worldwide for 2022:

167

Signatories to the African Union Convention on Preventing and Combating Corruption?

Yes

Corruption Perception Index score for 2022:

19

Signatories to United Nations Convention Against Corruption (UNAC)?

No

UNAC ratified?

No

Signatories to the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions?

No

Ratified?

No

Arbitration

Chadian's domestic arbitration law is governed by OHADA Uniform Act on Arbitration. Chad is also a contracting State to the ICSID Convention. Pursuant to Article 69 of the ICSID Convention, Chad enacted Act No. 6 of 8 January 1966 approving the ICSID Convention and the Decree No. 15/PR of 21 January 1966 on the ratification of the Convention on the Settlement of Investment Disputes between States and Nationals of other States to make the Convention effective in the jurisdiction.

Effectiveness of the court system

There is limited capacity within the judiciary to address commercial issues, including contract disputes. In the absence of an effective judiciary, companies usually try to resolve disputes directly.

Judiciary

Judges are appointed by the Chadian President without National Assembly confirmation, making them potentially vulnerable to influence from the executive branch.

Enforcement of foreign judgments

Decisions by foreign courts are not enforceable in Chad unless and until they have been granted exequatur by a Chadian court.

Perception of the local courts

In general, the courts are perceived by the local population to be weak and subject to direct influence by the government.

Structure of the court system

The judiciary is independent from the Executive and the Legislature. Judges retain their position for life, and they are only subject to the law in the exercise of their function. The judiciary comprises the Supreme Court, Courts of Appeal, Criminal Court, and the Courts of First Instance. The administration of the judiciary (including the appointment, promotion, discipline and responsibility of judges, etc.) is the responsibility of the High Council of the Judiciary (HCJ). The HCJ proposes Judges to the President for appointment and promotion. The Council is chaired by the President of the Republic, with the Minister of Justice and the Chairperson of the Supreme Court respectively as first and second Vice-Chairs. The other members of the HCJ are judges elected by their peers. When sitting on disciplinary matters, the HCJ is presided over by its second Vice-Chair.

Arbitral awards can only be subject to compulsory enforcement by virtue of an exequatur awarded by the competent judge in the member State.

Recognition and exequatur of the arbitral award requires that the party wishing to rely on it shall establish the existence of the arbitral award. The existence of the arbitral award is established by the production of the original arbitral award accompanied by the arbitration agreement or copies of these documents, and also satisfying the conditions required to prove their authenticity. Where the documents are not written in French, the party shall have to produce a translation certified by a translator registered on the list of experts established by competent courts.

The recognition and exequatur will be refused where arbitral award is manifestly contrary to international public policy of the Chad.

The decision refusing the exequatur of the arbitral award can only be set aside by the Common Court of Justice and Arbitration. The decision granting the exequatur is not subject to any recourse. However, a petition for nullity of the arbitral award shall, as a matter of law, and within the limits of the seizing of the competent judge of the member state, effectively provide recourse against the ruling allowing exequatur by the court.

Foreign investment incentives

The Government of Chad officially encourages foreign investment, particularly from regional partners in CEMAC, the Economic Community of Central African States (CEEAC) and OHADA. These groups seek to standardise tax policy, customs practices, and commercial law and in the case of CEEAC, support a free trade zone of member states.

Chad has also adopted a new Investment Charter in 2008 to offer incentives for foreign companies interested in establishing operations in Chad. According to the 2008 Investment Charter, foreign firms are given five years of tax-exempt status. Export taxes have largely been eliminated, and a value-added tax has been adopted throughout the CEMAC region that in principle allows goods to circulate duty free among member states.

Tobacco

• Law No 010/PR/2010 on anti-smoking fight; and
• Order No 039/PR/PM/MSP/SE/SG/DGAS/DSPELM/15 On the regulation of packaging and labelling of tobacco product in the Republic of Chad.

Press

• Law No. 31/PR/2018 of 3 December 2018 ratifying the Ordinance No 025/PR/2018 of 29 June 2018 governing the written press and electronic media in Chad.

Audio-visual communication

• Law No. 020/PR/2018 of 10 january 2019 relating to the audiovisual communication in Chad.

Telecommunications

• Law No 014/PR/2014 of 21 March 2014 on electronic communications

Industry Specific Legislation

• Law No. 16/PR/1999 relating to the water code.
• Law No. 036/PR/2019 relating to the electricity sector.
• Ordinance No 004/PR/2018 of 21 February 2018 relating to the mining code.

Personal income tax

Residents are taxed on worldwide income. Non-residents are taxed on income sourced in Chad.

• 20% to the fraction of income not exceeding 300,000 francs
• 25% to the fraction of income between 300,000 and 800,000 francs
• 30% to the fraction of income between 800,000 and 1,000,000 francs
• 40% to the fraction of income between 1,000,000 and 1,500,000 francs
• 45% to amounts of income between 1,500,000 and 2,000,000 francs
• 50% to the fraction of income between 2,000,000 and 3,000,000 francs
• 55% to the fraction of income between 3,000,000 and 6.000.000 francs
• 60% to the fraction of income above 6,000,000 francs

For taxpayers whose income per share does not exceed 300,000 francs, the contribution is reduced by 20%

When the net income per share is between 310,000 and 600,000 francs, the fee is reduced by 10%

Exchange control

Transfers within the State members of CEMAC are free but subject to declaration.

Transfers of funds within the Country are subject to a transfer fee determined by free competition and not exceeding 0.25%, excluding the VAT.

Transfers of funds abroad are subject to a transfer fee determined by free competition and not exceeding 0.50%, excluding the VAT.

Stamp duty

Stamp duty applies to all civil and judicial acts and writings that can be produced in court and to be used as proof.

Payroll tax and social security

Payroll tax:

• 10.5 % contribution of the employee
• 7.5% contribution of the employer
• Social security: 17%

Transfer pricing

Transfer pricing does not exist in Chad. Tax on transfer is included in the Value Added Tax.

Royalties

Royalties paid to non-resident companies are subject to a withholding tax of 25%.

Losses

Losses may be carried forward for three years.

Real property tax

12% of the rental value of assets

Technical service fees

0.25

Value added tax

0.18

Interest

0.2

Capital deductions

20%. Capital Gains Tax is not included in the corporation tax.

Corporation tax

• Resident companies: 40% on profits or 1.5% on turnover
• A resident company is either incorporated in Chad or has a permanent domestic establishment.
• Non-resident companies: 40% on profits or 1.5% on turnover
• Non-resident companies are taxed on income sourced in Chad.

Newly listed companies: New incorporated companies or companies undertaking new activity are exempt from the payment of corporation tax for the first five years of operation of the company or the new activity.

Export processing zone

There are no export processing zones.

Dividends

Dividends are considered as income. Please refer to the section on personal income tax. 

Thin cap regulations

There are no specific thin capitalisation rules.