Democratic Republic of the Congo

{"ftc_utility":"high","fbar_trigger_notes":"US expats employed in the DRC are typically paid partly or fully offshore to avoid currency controls and banking instability. Local BIAC or Rawbank accounts used for local living expenses may exceed $10,000 in aggregate. FBAR filing is required if aggregate foreign account balances exceed $10,000 at any point during the year. Currency conversion from Congolese franc (CDF) is required using the Treasury year-end rate.","ftc_utility_reason":"The DRC taxes resident individuals on worldwide income at rates up to 40%. US expats subject to DRC personal income tax can use Foreign Tax Credits to offset US federal tax liability on the same income. Given DRC rates are comparable to or higher than US rates on upper-income earners, FTCs frequently eliminate residual US tax on DRC-sourced earned income. FEIE and FTC cannot be claimed on the same income, so taxpayers must choose the more beneficial approach annually.","presence_day_count_notes":"The DRC issues work permits and residency permits separately from visa stamps. US citizens working in the DRC on long-term contracts typically hold a work permit and residence card. The State Department rates the DRC at Level 3 or 4 advisory for most provinces due to ongoing conflict in the east. Physical presence tracking is complicated by frequent travel for security reasons. The 330-day test counts days outside the US regardless of country visited, so security evacuations or regional travel do not per se disqualify the taxpayer, but periods of absence from the DRC itself may affect bona fide residence status.","typical_qualifying_method":"either","housing_exclusion_available":true,"physical_presence_test_applies":true,"estimated_housing_exclusion_usd":28000,"local_tax_rate_on_earned_income":0.4,"bona_fide_residence_test_applies":true}

{"pension_income":{"notes":"Foreign pension income received by DRC tax residents is subject to schedular personal income tax at progressive rates up to 40%. No reduced rate applies to pension income specifically.","tax_rate":0.4,"locally_taxed":true},"social_security":{"notes":"No US-DRC totalization or income tax treaty exists. US Social Security benefits received by a DRC resident could be subject to DRC personal income tax as foreign pension income. In practice enforcement is limited but no legal exemption applies.","locally_taxed":true,"treaty_protection":false},"roth_distributions":{"notes":"No treaty exists to protect Roth IRA distributions from DRC taxation. Distributions may be treated as income by DRC authorities. The DRC tax code does not recognize the US Roth construct, so qualified distributions are not guaranteed to be treated as tax-free locally.","locally_taxed":true},"us_401k_ira_distributions":{"notes":"The US and DRC do not have a bilateral tax treaty. US retirement distributions (401k, IRA) received by a DRC tax resident would be treated as foreign-source pension or employment income and subject to DRC personal income tax at progressive rates up to 40%. No treaty protection exists to limit DRC taxation of these amounts.","tax_rate":0.4,"locally_taxed":true,"treaty_protection":false}}

{"rate":0.4,"notes":"The DRC does not have a standalone capital gains tax. Gains realized by individuals are generally taxed as ordinary income under the schedular income tax system, subject to the top marginal rate of 40%. Corporate gains are folded into taxable profits and subject to corporate income tax at 30%.","details":{"tax_type":"Capital Gains Tax","country_name":"Democratic Republic of the Congo","country_iso_code":"COD","source_references":["PwC Worldwide Tax Summaries - DRC","DRC General Tax Code (Code General des Impots)"],"last_verified_date":"2026-06-03","general_description":"No separate capital gains tax regime exists in the DRC. Individual capital gains are treated as ordinary income under the schedular personal income tax and taxed at progressive rates up to 40%. Corporate gains are included in corporate taxable income at the 30% flat rate.","corporate_capital_gains":{"rate":0.3,"tax_treatment":"Included in corporate taxable income and taxed at the standard corporate income tax rate of 30%."},"individual_capital_gains":{"rate":0.4,"tax_treatment":"Taxed as ordinary income under the schedular personal income tax system at progressive rates up to 40%. No preferential rate or exemption for long-term holding periods."}}}

{"notes":"Dividends paid to non-residents are subject to a 20% withholding tax under DRC domestic law. Dividends paid to resident individuals are also subject to a schedular withholding at 20%. No dividend imputation or credit system applies. Treaty rates may reduce withholding for residents of treaty countries, though DRC has a limited treaty network.","rates":[{"rate":0.2,"type":"withholding","notes":"Standard withholding rate on dividends paid to both residents and non-residents under DRC domestic law."}]}