Comoros Corporate Tax Guide: CIT 50%, New Business 15%, Mining 35% 2026
Comoros' Corporate Income Tax (CIT) regime features a standard rate of 50%, the highest in Africa. New businesses benefit from a reduced rate of 15% for their first 5 years of operation. Mining and petroleum activities are taxed at 35%. Here is how Comorian corporate tax works in 2026.
Corporate Income Tax in Comoros is governed by the General Tax Code (Code Général des Impôts) and administered by the Direction Générale des Impôts (DGI). The standard CIT rate of 50% applies to all established legal entities. This is notably the highest corporate tax rate in Africa, significantly above regional peers — Kenya (30%), Tanzania (30%), Madagascar (20%), and Mozambique (32%). The 15% reduced rate for new businesses (first 5 years) is designed to encourage entrepreneurship and foreign investment. The tax year is the calendar year. Companies must file annual CIT returns by May 31 of the following year. Filing and compliance guide →
Real-world example: A Moroni-based trading company with annual turnover of KMF 200 million and taxable profit of KMF 50 million pays CIT at 50% = KMF 25,000,000. A new business (less than 5 years old) with the same profit pays CIT at 15% = KMF 7,500,000. A mining company with KMF 100 million profit pays CIT at 35% = KMF 35,000,000. Compare this to Kenya where the same profits would incur 30% CIT, or Tanzania at 30%. The new business incentive provides significant relief during the critical early years. Sector-specific considerations →
Corporate Tax Rate Structure
- 50% (standard): All established businesses (more than 5 years of operation)
- 15% (new businesses): Reduced rate for the first 5 years of operation — applies to newly registered companies
- 35% (mining/petroleum): Special rate for mining and petroleum extraction activities
- No small business rate: Unlike many African countries, Comoros does not have a special micro-enterprise CIT rate
The 50% standard CIT rate is the highest in Africa and among the highest globally. The 15% new business rate provides a significant incentive for startups and foreign investors during the initial 5-year period. Companies must requalify for the reduced rate based on registration date and activity.
Taxable Income and Deductions
Corporate taxable income is calculated as accounting profit adjusted for tax purposes. Key rules include:
- Depreciation: Standard rates apply — buildings 5%, machinery 20%, vehicles 25%, computers 33.3%
- Interest deductibility: Thin capitalization rules may limit interest deductions
- Loss carryforward: Tax losses can be carried forward for 3 years (with limitations)
- Dividend deduction: Dividends received from Comorian resident companies are generally exempt from CIT
- Capital gains: Treated as ordinary income and taxed at standard CIT rate
Transfer pricing rules apply for transactions with related parties. Documentation requirements follow OHADA accounting standards. Cross-border taxation →
Withholding Taxes on Outbound Payments
Comoros imposes withholding tax on certain payments to non-residents:
- Dividends: 10% WHT (0% for residents, 10% for non-residents)
- Interest: 10% WHT (0% for residents)
- Royalties: 10% WHT (10% for both residents and non-residents)
WHT rates may be reduced under Comoros' limited Double Taxation Treaties (primarily France). Investment income guide →
Tax Incentives and Exemptions
Comoros offers various incentives to attract investment:
- New business rate: 15% CIT for the first 5 years of operation — the primary tax incentive
- Strategic sectors: Potential customs duty exemptions for qualifying investments in agriculture, tourism, and fisheries
- Free zone: Special economic zone status may be available for qualifying export-oriented businesses
Incentives typically require prior approval from the investment promotion agency and minimum investment thresholds. IT and services sector →
Who needs to register for CIT in Comoros?
All legal entities (companies, partnerships, branches of foreign entities) must register for CIT with the DGI. Registration is required before starting business operations. Non-resident companies with a permanent establishment in Comoros are also subject to CIT on Comorian-source income.
What is the filing deadline for corporate tax?
Annual CIT returns must be filed by May 31 of the following year. Tax is paid in quarterly installments during the year based on the previous year's liability, with a final settlement upon filing. Late filing penalties apply.
Are there any regional taxes in Comoros?
Comoros has a unitary national tax system. There are no regional or municipal corporate taxes. The 50% CIT (or applicable rate) is the only corporate-level tax. Local municipalities may impose modest business license fees (patente) which are separate from CIT.