previous
next

Income from Colonial Enterprises

The Law of June 21st, 1927, created a special regime in favour of enterprises operating in the Belgian Congo.

In principle, enterprises — whether they have or not the form of companies — which have their head office or principal administrative establishment in Belgium and their centres of operation in the colony, are liable to taxes on income, regardless of whether the taxable income is of Belgian or colonial origin.

The tax is imposed: (a) in the case of share companies, on the income from share and on profits placed to reserve or on one-twentieth of the annual net profit in the case of Congo private companies (sociétés àresponsabilité limitée); (b) in the case of other taxable enterprises, on income distributed to members or partners or on other income from invested capital.

The rate of the tax is 17 per cent for the incomes enumerated above; it is reduced to 13 per cent on income from bonds.

The Colonial Treasury receives the whole of the tax on the interest on colonial loans and on dividends accruing to the Government of the Belgian Congo from securities in its portfolio, and four-fifths of the capital yield of the other taxes on securities, including the tax on income from bonds; the remaining fifth goes to the Belgian State.

previous
next