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8.2.2. Withholding Taxes

The withholding tax rates levied on income received / derived by non-residents from sources within DRC is a final tax on such income. The withholding tax may be partially or fully relieved in application of an effective tax treaty.  The withholding tax rates are as below:

Dividend

Dividends paid by resident enterprises are subject to withholding tax at the rate of 20% (for mining companies the withholding tax rate is 10%).

Interest

Interest paid by residents to non-residents is subject to withholding tax at 20%. As per the new 2018 Mining Law, interest paid by mining companies on debt contracted abroad in foreign currency is exempt from withholding tax on condition that the interest rate and other conditions regarding the loan are at arm’s length Also, pursuant to the Finance Law 2017, interest on State bonds and Treasury bills is exempt from withholding tax.

Royalty Copyright

Tax is withheld at the rate of 20% on royalties paid to non-residents. However, the withholding tax is only due on 70% of the gross amount paid out (the remaining 30% are deemed to correspond to expenses incurred in the production of the royalty income and are exempt from withholding tax).The effective rate is therefore 14%.  

Royalty Patent

Tax is withheld at the rate of 20% on royalties paid to non-residents. However, the withholding tax is only due on 70% of the gross amount paid out (the remaining 30% are deemed to correspond to expenses incurred in the production of the royalty income and are exempt from withholding tax). The effective rate is therefore 14%.

Royalty Trademark

Tax is withheld at the rate of 20% on royalties paid to non-residents. However, the withholding tax is only due on 70% of the gross amount paid out (the remaining 30% are deemed to correspond to expenses incurred in the production of the royalty income and are exempt from withholding tax). The effective rate is therefore 14%.

Service Management

Tax is withheld at the rate of 14% on service management fees paid to non-residents.

Service Technical

Tax is withheld at the rate of 14% on service technical fees paid to non-residents.

Other

Tax is withheld at 20% on directorship fees paid to non-residents.

Below is a discussion of domestic withholding tax rules for most of the common cross border payments.

Capital Gains 35.0 %
Dividends 20.0 %
Interest 20.0 %
Royalty Copyright 14.0 %
Royalty Patent 14.0 %
Royalty Trademark 14.0 %
Sales 0.0 %
Service Management 14.0 %
Service Technical 14.0 %

* Rates are current as of 18 September 2022