Capital: Kinshasa
Currency: Congolese franc
Population: (2022 est.) 108,408,000
Official languages: French, Swahili
Democratic Republic of the Congo, country located in central Africa. Officially known as the Democratic Republic of the Congo, the country has a 25-mile (40-km) coastline on the Atlantic Ocean but is otherwise landlocked. It is the second largest country on the continent; only Algeria is larger. The capital, Kinshasa, is located on the Congo River about 320 miles (515 km) from its mouth.
The public holidays in the Democratic Republic of Congo are;
- New Year’s Day (1st January)
- Martyrs’ Day (4th January)
- Heroes’ Day (Laurent Kabila) (16th January)
- Heroes’ Day (Patrice Lumumba) (17th January)
- Labor Day (1st May)
- National Day of the Revolution and the FARDC (16th May)
- Independence Day (30th June)
- Parents’ Day (1st August)
- Christmas Day (25th December)
The probation period may not exceed 1 month for an unskilled laborer without specialization, and 6 months for the other employees.
: The duration of annual leave has to be of at least one day for every month of effective service, for worker over the age of 18. It shall be of at least one and a half day for workers under the age of 18. It shall be increased of one day per month every 5 years of seniority in the same employer or replaced employer
Upon pregnancy, women have the right to suspend their work for 14 consecutive weeks, a maximum of eight weeks post pregnancy and six before childbirth. During this period, whether the child lives or not, the employee is entitled to two-thirds of her salary and continuation of the contractual benefits.
Fathers have a right to paternity leave with a minimum of 2 days of mandatory paid paternity leave.
There is no statutory sick leave, but some employers grant some days of paid sick leave.
There is no statutory severance pay
The General Direction of Migration issues temporary work visas. To obtain a temporary work visa, the following documents must be submitted to the Direction:
- Work contract of the expatriate
- Proof of identity of the expatriate
- Identification picture
- Completed form provided by the Direction together with the contract between the DRC company and the foreign company.
To obtain a work permit, an authorization for a work card from the Labor Ministry is required. The process used to obtain temporary work visas also applies to work visas and work permits. This process also applies to establishment visas and multiple entry visas.
Type of Visa/Permit
Temporary Work Visa: Foreigners seeking short term work in the Democratic republic of Congo can apply for a temporary work visa. This type of visa is valid for 3months. Document required to obtain this kind of visa;
- Valid passport
- Completed application form
- Work contract of the expatriate
- Proof of identity of the expatriate
- Identification picture
- Completed form provided by the Direction together with the contract between the DRC company
and the foreign company
Work Permit: Foreigners seeking to work in the Democratic republic of Congo can apply for a work permit. This type of visa is valid for 1-2 years. Document required to obtain this kind of visa;
- Valid passport
- Completed application form
- Work contract of the expatriate
- Proof of identity of the expatriate
- Identification picture
- Completed form provided by the Direction together with the contract between the DRC company and the foreign company
In the DRC, both the employer and the employee can terminate every employment contract but termination cannot be done freely and is subject to a strict regime. Concerning the termination of fixed term contracts, note that these contracts always end by expiration of the term for which they were initially concluded, and any clause stipulating the possibility of giving notice is null and void. Therefore, every premature termination of fixed-term contracts gives rise to compensation. Unless the parties or the collective agreement stipulate a longer period, the notice period is equal to 14 working days as from the day after the notification, where the notice is given by the employer. This period is increased by seven working days per full year of continuous service, counted from date to date.
According to the legislation, these benefits are required. These consist of the probationary term, yearly leave, federal holidays, sick leave, maternity leave, overtime pay, notice period, and severance compensation. Social Security payouts are statutory benefits as well.
In every public or private establishment, even those directed to education or charity, the legal working time of employees and workers, of whichever sex, no matter the nature of the work, cannot exceed 45 hours per week and 9 hours per day.
The overtime rate amounts to a percentage of the corresponding salary.
- 30% for each of the first six hours worked in excess of the statutory weekly working time or the period considered equivalent.
- 60% for each of the following hours; and
- 100% for each hour of overtime performed on the weekly day of rest
Unless the parties or the collective agreement stipulate a longer period, the notice period is equal to 14 working days as from the day after the notification, where the notice is given by the employer. This period is increased by seven working days per full year of continuous service, counted from date to date.
Personal Income Tax Rates
The personal income tax (IPR) is calculated according to the following annual progressive tax table: IPR cannot exceed 30% of the taxable salary. The indemnities and allowances paid to an employee in relation with the termination of one’s contract of employment are taxed to IPR at the specific rate of 10%. Moreover, the sums paid to casual employees (employees hired on a day-to-day basis) are subject to IPR, but at a preferential rate of 15%. Incomes other than salaries are not subject, in practice, to IPR. Moreover, foreign-sourced profits are not taxable in the Democratic Republic of the Congo (DRC).
The Democratic Republic of the Congo (DRC) levies taxes on resident companies and individuals on a territorial basis (or source basis) of taxation. Foreign-sourced profits (e.g. dividends received from a foreign subsidiary) are thus exempt from CIT.
National insurance fund (Institut National de Sécurité Sociale or INSS):
The Prime Minister of the Democratic Republic of the Congo signed the Decree n°18/041, dated 24 November 2018, fixing the rates of social contributions. These rates of social contributions are applicable to the branches of family benefits, pensions, and occupational risks. The said rates are set as follows:
- 5% borne by the employer (branch of occupational risks).
- 5% borne by the employer (pension branch).
- 5% borne by the worker (pension branch).
- 5% exclusively borne by the employer (family benefits branch).
National office for professional training (Institut National de Préparation Professionnelle or INPP):
INPP contribution is paid only by the employer at:
- 3% for state-owned companies and private companies with up to 50 employees.
- 2% for private companies with 51 to 300 employees.
- 1% for private companies with over 300 employees.
National office of employment (Office National de l’Emploi or ONEM):
ONEM contribution is paid only by the employer at 0.2%.
Contribution Employer Employee
National Insurance Fund (INSS) 1.5%/5%/6.5% 5%
National Office For Professional Training (INPP) 1%/2%/3% –
National Office of Employment (ONEM) 0.2% –
INSS contribution (employee’s share only) is deductible from the IPR taxable basis. 2% per dependent (limited to nine dependents) may be deducted from IPR.
The VAT base includes whatever sums, amounts, goods, or services that are received as compensation for an operation; this involves subsidies as well as any other costs, taxes, rights, or any related levies, whatever their nature, excluding the VAT itself. There are two rates: A standard rate of 16%, and a rate of 0% on exports and assimilated transactions.
Dividend: The rate of dividend withholding tax for mining companies is 10%. A notional dividend withholding tax applies to branches (branch remittance tax). The rates of this tax are 8% for public limited liability companies and 10% for other limited liability companies.
Interest: Interest on loans abroad to mining companies is not subject to withholding tax
Royalties: The net amount of royalties is subject to tax. For this purpose, net royalties’ equal gross royalties minus professional expenses, or 30% of gross royalties (resulting in an effective tax rate of 14%).
Fees for Technical Services: This withholding tax applies to payments for services provided to Congolese companies by foreign companies and individuals without a permanent establishment in the DRC. The tax base is the gross amount of the applicable invoice. The WHT on various types of payments are as follows.