Important Announcement: Substantial adjustments brought to VAT within the Oil & Gas Industry in Congo-B
Important Announcement dealing with Congo-B Oil & Gas Industry Taxation (VAT) 22 years after an important Tax relief system implemented specially for Oil & Gas producers along with their respective subcontractors
Congo B host Authorities revised a major topic including in the VAT law (Law N°12-97 disclosed on May 12 1997). In fact, it has been decreeted on October 11, 2023 based on an IMF guidance that all transactions (sales and purchases) operated inside the Country by Oil & Gas operators along with their respective O&G subcontractors will nowadays be taxed to the normal VAT rate (18%) to comply with the so-called VAT Territoriality principle. This should indeniably increase the State budget and allow to bridge many gaps accordingly... An official decreet should be released soon to emphasize the application of this useful adjustment (purely on a macroeconomic prospective) brought to the second Petroleum Act disclosed back in 2016...
References :
References: https://www.imf.org/-/media/Files/Publications/CR/2022/English/1COGEA2022002.ashx
Congo-Brazzaville State Governance Meeting hold on 11 October 2023. (available online)