Comoros Investment Income Guide: Dividends 10%, Interest 10%, Royalties 10% 2026

Q: What is the procedure for claiming treaty relief?

Submit a Treaty Relief Application and Certificate of Tax Residency to the payer. Reduced rates apply at source. If over-withheld, file a refund claim with the DGI.

Comoros applies withholding taxes on investment income paid to non-residents: dividends at 10%, interest at 10%, and royalties at 10%. Residents are generally exempt from withholding tax on dividends and interest. Double Taxation Treaties (limited network, primarily France) may reduce these rates. Here is how investment income is taxed in 2026.

The taxation of investment income in Comoros distinguishes between resident and non-resident recipients. Residents are generally exempt from withholding tax on dividends and interest, while non-residents face withholding tax at rates specified in domestic law (subject to treaty reduction). The DGI administers withholding tax obligations — the payer (the Comorian company or individual) is responsible for withholding and remitting the tax. Cross-border tax guide →

Real-world example: A Comorian company pays KMF 2,000,000 in dividends to a non-resident shareholder. WHT at 10% = KMF 200,000, net payment = KMF 1,800,000. If the shareholder is resident in France (Comoros-France DTT provides for 5% on dividends with substantial shareholding), the WHT would be KMF 100,000, net = KMF 1,900,000. A resident Comorian shareholder receives dividends without any WHT. Interest of KMF 500,000 paid to a non-resident lender: WHT 10% = KMF 50,000. Corporate tax overview →

Withholding Tax Rates on Investment Income

Dividends — residents: 0% WHT — dividends paid to Comorian resident individuals and companies are exempt
Dividends — non-residents: 10% WHT — may be reduced under applicable DTT
Interest — residents: 0% WHT — interest paid to Comorian residents is exempt
Interest — non-residents: 10% WHT — may be reduced under applicable DTT
Royalties — residents: 10% WHT — domestic rate applies to residents
Royalties — non-residents: 10% WHT — may be reduced under applicable DTT

The 10% WHT rates are moderate by African standards. Many other countries in the region impose 15-20% on outbound dividends before treaty relief.

Double Taxation Treaty Network

Comoros has a limited Double Taxation Treaty network. The primary treaty is with:

France: The Comoros-France DTT provides reduced withholding tax rates: dividends 5-10% (depending on shareholding), interest 10%, royalties 5-10%

For countries without a DTT (most trading partners), the domestic 10% rate applies in full. Treaty benefits require the recipient to be the beneficial owner and provide a Certificate of Tax Residency from the treaty jurisdiction. Comoros is working to expand its treaty network but currently has one of the smallest DTT networks in Africa.

Taxation of Other Investment Income

Bank interest: Interest on savings accounts and deposits earned by residents is not subject to withholding tax. Non-residents may be subject to 10% WHT
Government bonds: Interest on Comorian government securities may have specific tax treatment
Capital gains on investments: No separate CGT — gains on shares are generally exempt, real estate gains taxed as ordinary income

Compliance and Reporting

Comorian companies paying dividends, interest, or royalties to non-residents must withhold the appropriate tax and remit it to the DGI within the prescribed timeframe (typically by the 15th of the following month). The payer must also file an annual withholding tax return. Recipients seeking treaty relief must provide: a Certificate of Tax Residency from their home country tax authority, a declaration of beneficial ownership, and any other documentation required by the DGI. Failure to withhold correctly results in the payer being liable for the unpaid tax plus penalties.

Are dividends from Comorian companies exempt for residents?

Yes. Dividends paid by Comorian resident companies to Comorian resident individuals or companies are exempt from withholding tax. This encourages domestic investment and profit distribution within the economy.

What is the procedure for claiming treaty relief?

The non-resident recipient must submit a Treaty Relief Application to the Comorian payer, along with a Certificate of Tax Residency from their home country. The payer then applies the reduced rate at source. If tax has been over-withheld, the non-resident can file a refund claim with the DGI.