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5.5. Source Rules with Respect to Income Derived by Non-Residents

Income earned by non-residents from sources in DRC is subject to tax in the country. The new Mining Code introduced a deeming provisions whereby gains on the disposal of stock in a company holding a mining title in DRC are deemed to be sourced in DRC if the stock in fact represents assets in DRC (indirect transfer of assets, see Sec. 8.1.). Taxes collected through withholding tax are deemed to be the final tax on such income unless reduced under applicable tax treaty. Income subject to withholding tax includes dividends, interests, royalties, service fees, etc.