The importance of tax revenues in the Democratic Republic of Congo in 2023
In 2023, the Directorate General of Taxes (DGI) of the Democratic Republic of Congo made a significant contribution to the annual budget. Indeed, out of the 52 billion Congolese francs in the budget, the DGI managed to generate more than 13 thousand billion Congolese francs, or 33.6% of the total. This represents an increase of 254 billion Congolese francs compared to the previous year.
These positive results are the result of the DGI’s efforts to improve tax collection and broaden the tax base. The authority has notably put in place measures aimed at encouraging state agents and civil servants, as well as other professional categories, to pay income tax. In addition, VAT has been extended to structures that were not previously subject to it, such as synthetic tax centers.
As part of its performance contract with the Ministry of Finance, the DGI set ambitious objectives and achieved more than 95% of its assignments in 2023. However, a deficit of around 5% was recorded due to non-payment of tax on profits and profits by miners.
To continue its momentum in 2024, the DGI plans to implement significant reforms. Among these, we can cite the taxation of informal sectors, with the creation of a one-stop shop for payment of business license and flat-rate tax for small businesses. In addition, the DGI intends to introduce the standardized invoice and use electronic tax systems to strengthen the monitoring and collection of VAT.
At the same time, the DGI will pay particular attention to the mining sector to ensure that excess profits are correctly taxed. In addition, common law companies will be required to certify their financial statements by an accountant before declaring their taxes.
With these measures and reforms in place, the DGI is well positioned to continue to improve tax collection and contribute significantly to the country’s budget. This strengthening of tax revenues is essential to support the economic development of the Democratic Republic of Congo and finance projects aimed at improving the quality of life of its population.