Israel – Chad Tax Treaty

ישראל – צ׳אד אמנת מס

Israel – Chad Tax Treaty

Details about the Israel embassy in Chad (located in Senegal):

Address: Embassy of Israel, 3 Place de l’independence, Immeuble SDIH B.P 2096 DAKAR, SENEGAL
Phone: (+221) 33 823 79 65
Website: Click Here
E-mail: consular@dakar.mfa.gov.il

Details about the Chad embassy in Israel:

Address: Tuval 11, Ramat Gan

UTC:
Capital City:
Language:
Population:
Currency:
Country Code:
Domain:

+1
N’Djamena
French and Arabic
17.8 million
African CFA Franc
+235
.td

Israel-Chad Relations

Diplomatic relations between Israel and Chad began even before Chad gained independence from France in 1960, however they were severed in the 1970s. In 2016, official meetings began between the two countries in favor of renewing relations, and in 2019, after a meeting between the heads of state, diplomatic relations between the two countries were renewed. In February 2023, Chad’s Embassy in Israel was inaugurated in Ramat Gan.

Residency for tax purposes in the country

 

Residency of an individual

An individual shall be considered a resident of Chad for tax purposes when the person:

  1. Owns a residence in Chad, as owner, user or tenant, for a period of at least one year;
  2. Live in Chad for at least 183 days a year or
  3. The center of his vital interests is in Chad.

Company Residency

A company will be considered a resident of Chad for tax purposes when registered in Chad or its effective management location is located in Chad.

The country’s tax system

Income taxation: progressive, 0-30%

Corporate and branch taxation: 35%

VAT: 18%

Capital gains tax: 20%

Tax withholding

 

The tax rate in the internal law of the country

Tax Rate in Internal Law in Israel

Personal income tax (tax brackets)

·      0-800,000 = 0%

·      800,001-2,500,000 = 10%

·      2,500,001-7,500,000 = 20%

·      Over 7,500,000 = 30%

Up to 50%

Corporate income tax

35%

23%

Capital gains tax rate

20%

25%-30%

(plus exceptional income tax for 3% higher wage earners)

Branch tax

20%

23%

Tax withholding

(Non-Resident)

Dividend

20%

25% or30%

Tax withholding (non-resident) interest

25%

15%/25%/23%

Tax withholding (non-resident) royalties

12.5%

23%-40%

Vat

18%

17%

Inheritance tax

No

No

Inheritance tax and estate tax in the country

There is no inheritance and estate tax in Chad.

Money Transfer from Israel to Chad

In accordance with the Israeli Income Tax Ordinance, section 170(a), most money transfers from Israel to Chad require the approval of a tax assessor on behalf of the Tax Authority.

Today, Israeli banks are not willing to accept money from Chad. However, in some cases it is possible to carry out complex tax planning that will enable the receipt of Chadian money in Israel, so it is very important to consult before transferring the funds. Contact us.

For more information on money transfers abroad click here.

 Types of business entities in the country

  1. Limited Liability Company (SARL) – The liability of investors in such a company is limited, according to the company’s articles of association, to the amount of shares they own. This type of company in Chad requires one director and one shareholder, and the minimum share capital required to establish the company is US$2,000.
  1. Limited Liability Company (SA) – To establish a company in Chad, only one shareholder and one director are required, and the minimum share capital needed is US$20,000.

Incentive laws in the country

Companies engaged in the agriculture, renewable energy, and information and communication technology sectors can benefit from a reduction of 50% of registration fees and 50% of the five-year corporate tax base.

Countries with which the state has a double tax avoidance treaty:

Cameroon

Central African Republic

Equatorial Guinea

Gabon

Republic of the Congo

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