# Republic of Congo Transfer Pricing v1.0

> **General reference only.** This skill is general tax/accounting reference material for AI-assisted workflows. It has not been reviewed for any specific person's facts, documents, elections, deadlines, residency, filing status, or local procedures. Do not rely on it to file, pay, amend, or take a tax position without review by a qualified professional in the relevant jurisdiction.

**Draft scope:** Congo enterprises with foreign controlled transactions and legal persons within the documentation threshold. Source text is the initial 2026 enacted code replacement; later 2026 law and live prescribed reporting forms remain open. Independent pack review is pending. Initial 2026 law is not represented as a fully consolidated or operational 2026 position.

## Who this applies to

Congo enterprises with foreign controlled transactions and legal persons within the documentation threshold. Source text is the initial 2026 enacted code replacement; later 2026 law and live prescribed reporting forms remain open.

## Rates, bands and thresholds

| Item | Rule and conditions | Authority |
|---|---|---|
| Documentation threshold | Congo-established legal persons with annual tax-exclusive turnover OR gross balance-sheet assets at least XAF 500,000,000 keep documentation for transactions of any kind with foreign related legal entities. Apply the OR test at equality, not turnover alone. | [CGI81I](https://sgg.cg/JO/2026/congo-jo-2026-3-3.pdf); ledger T02 |
| Advance pricing agreement | 84 permits bilateral agreements via treaty competent authorities and unilateral Congo agreements. A unilateral agreement is transaction/activity/function/product-specific; APAs last at most 3 years, renewable under conditions, and conclusion requires XAF 10,000,000. Payment/request alone is not approval. | [CGI84](https://sgg.cg/JO/2026/congo-jo-2026-3-3.pdf); ledger T12 |

## The base

Map counterparties and control, including privileged-tax situations; reconcile controlled flows to accounts and invoices. Test T02 separately from T01. Record functions/assets/risks, select and justify T11's method with reliable comparables, compute any adjustment and reconcile to the corporate tax return. Gather T03/T04/T07 before signing off.

| Item | Rule and conditions | Authority |
|---|---|---|
| Arm's-length adjustment | For enterprises dependent on/controlling foreign enterprises, including common foreign control, profits indirectly shifted through purchase/sale prices or other means are restored to Congo results. Dependency need not be shown for transfers to an enterprise in a privileged-tax foreign territory. Lack of documents permits assessment from available information; comparable enterprises and functional/comparability/industry analyses are relevant. The documentation threshold is not a substantive exemption. | [CGI77](https://sgg.cg/JO/2026/congo-jo-2026-3-3.pdf); ledger T01 |
| Group information | Documentation includes group activities and changes, legal/operational structure and controlled counterparties, functions/risks affecting results, principal intangibles connected to the enterprise and group pricing policy. | [CGI81II(1)](https://sgg.cg/JO/2026/congo-jo-2026-3-3.pdf); ledger T03 |
| Local information | Include local activity/changes; nature and amount of flows including royalties; cost-sharing agreements, relevant APAs/rulings; FAR and justified selected methods; comparables where appropriate; principal method and yearly changes. 81II also calls out transactions whose aggregate by nature exceeds XAF 50,000,000. That detail line does not replace the 500 million entity test. | [CGI81II(2)](https://sgg.cg/JO/2026/congo-jo-2026-3-3.pdf); ledger T04 |
| CbC content | Country-by-country information covers jurisdiction aggregates for turnover, pretax profit/loss, taxes paid/due, capital, retained earnings with years, staff and tangible assets excluding cash/equivalents. Identify group entities having controlled transactions with the local entity, tax residence and principal business activities. Do not treat this as only a related-party invoice list. | [CGI81IV(1)](https://sgg.cg/JO/2026/congo-jo-2026-3-3.pdf); ledger T07 |
| Methods and selection | 85 recognises CUP, cost plus, resale price, TNMM and profit split. The selected method must be justified, coherent with functions and assumed risks, and deliver arm's-length remuneration. The fifth method and selection sentence were visually read on Gazette p 46 because the text layer omitted them. No automatic hierarchy or mandatory median rule is supplied. | [CGI85](https://sgg.cg/JO/2026/congo-jo-2026-3-3.pdf); ledger T11 |
| Foreign-information reassessment extension | Where foreign information was requested within the original reassessment period,83 permits correction until the end of the year after the response, but no later than the end of the sixth year following the tax year. This is conditional, not a universal 6-year audit period. | [CGI83](https://sgg.cg/JO/2026/congo-jo-2026-3-3.pdf); ledger T13 |

## Deadlines and filing

T05, T06 and T10 have different clocks. Keep a dated file available at audit start, submit the prescribed annual material at the relative statutory deadline, and track any formal request separately. The actual current form, portal route, notification channel and field IDs have not been verified. Do not report a successful filing.

| Item | Rule and conditions | Authority |
|---|---|---|
| Availability at audit | Documentation does not replace underlying transaction evidence and must be available when the accounting audit starts. Keeping an unfinished file until a later information request does not satisfy that trigger. | [CGI81III](https://sgg.cg/JO/2026/congo-jo-2026-3-3.pdf); ledger T05 |
| Annual declaration and CbC | Entities within 81I spontaneously transmit the prescribed annual declaration accompanying TP documentation within 6 months after the annual results return deadline. The light and full TP declarations are accompanied by the stated country-by-country declaration. Do not invent a separate EUR 750 million threshold; no such threshold appears in the cited 81 wording. Because the results-return deadline conflicts across official sources, no fixed calendar CbC date is certified here. | [CGI81IV(1)](https://sgg.cg/JO/2026/congo-jo-2026-3-3.pdf); ledger T06 |
| Specific audit request | 82 allows a precise request on foreign relationships, pricing/method justification, activities and tax treatment. Initial response time cannot be less than 1 month; reasoned extension may bring the total to no more than 3 months. An insufficient answer can receive a further 30-day completion demand specifying missing items and sanctions. | [CGI82](https://sgg.cg/JO/2026/congo-jo-2026-3-3.pdf); ledger T10 |

## Penalties and interest

T08 and T09 distinguish documentary fines, late-filing fines and adjustment exposure. An APA filing fee is not a default penalty. T13 concerns the limited foreign-information reassessment extension.

| Item | Rule and conditions | Authority |
|---|---|---|
| Document/declaration non-production | 81IV(2) provides XAF 5,000,000 after an unanswered 8-day formal demand for the stated documentation/declaration defaults, subject to other declaration sanctions. Missing full documentation at audit commencement has a separate XAF 25,000,000 fine. Late CbC or accompanying TP declaration has XAF 5,000,000. Do not mechanically add overlapping amounts without classifying the actual defaults. | [CGI81IV(2)](https://sgg.cg/JO/2026/congo-jo-2026-3-3.pdf); ledger T08 |
| CbC and adjustment consequence | Failure to provide CbC after an 8-day formal demand calls the period's controlled prices into question. Foreign charges outside arm's-length conditions or the described policy are added back to the Congo enterprise's result. | [CGI81IV(2)](https://sgg.cg/JO/2026/congo-jo-2026-3-3.pdf); ledger T09 |

## Cross-border points

Foreign affiliates, royalty/services and privileged-tax dealings require T01 even if the entity is below T02. Domestic transaction scope beyond the cited cross-border provisions and any treaty MAP relief need separate authority. Use [corporate tax](cg-corporate-income-tax.md) for tax on a supported adjustment.

## Two worked examples that recompute

### 1. Supported cost adjustment

A hypothetical foreign related-party service charge is XAF 12,000,000; a fully supported functional/comparability study establishes arm's-length charge 10,000,000. Under T01 the 2,000,000 excess is restored. For a domestic ordinary company under C01, the incremental initial-law IS is 560,000, assuming minimum tax and all other rules do not change the result. The comparator is an example fact, not a statutory safe harbour.

```oa-check
name: Supported cost adjustment
inputs:
  booked_charge: 12000000
  supported_charge: 10000000
steps:
  - addback: max(0, booked_charge - supported_charge)
  - incremental_is: addback * 0.28
expected:
  addback: 2000000
  incremental_is: 560000
```

### 2. Decision: turnover below threshold but assets at equality

A Congo company with foreign related transactions has turnover 499,000,000. With gross assets 500,000,000, T02 applies; with assets 499,000,000, its numerical test is not met. The indicator below is 1 for the threshold being met. In either case T01's substantive arm's-length rule still applies. This decides whether to prepare the 81 documentation bundle, not whether to price correctly.

```oa-check
name: Decision: turnover below threshold but assets at equality
inputs:
  turnover: 499000000
  assets_first: 500000000
  assets_second: 499000000
steps:
  - first_required: min(1, floor(max(turnover, assets_first) / 500000000))
  - second_required: min(1, floor(max(turnover, assets_second) / 500000000))
expected:
  first_required: 1
  second_required: 0
```

## Ask the client first

- Counterparties, countries and direct/common control?
- Privileged-tax recipients and full controlled-flow amounts?
- Annual turnover and gross balance-sheet assets?
- Actual FAR, comparables and changes in methods?
- Return deadline, audit engagement and formal requests received?

## Sources

| Source and portion actually read | Official URL | Read on |
|---|---|---|
| Finance Act 42-2025, official gazette special 3-2026. Enacted initial 2026 law: cover; art 5; art 47 replacement CGI 2–11,15–19,21,25,42,45–49,69–86A,86C–G,92–92E,93–99,102,104–110A,111C–116I,128–131(excerpts through part 6); amendments 374ter and VAT 24/29; state invoice rule 7.2.4; final arts 61–62. Focused provisions with neighbors, not all fiscal schedules or all 116pages read. | https://sgg.cg/JO/2026/congo-jo-2026-3-3.pdf | 2026-11-01 |

Figure/rule quotations and source hashes: [country ledger](../../evidence/ledgers/republic-of-congo-draft-20261101/cg-transfer-pricing.md). Every worked figure is conditional on the stated example facts.

Not yet confirmed: Later 2026 amendments; results-return date conflict; operative prescribed TP/CbC forms, submission fields and notification procedures; detailed privileged-tax definition; current APA application procedure, renewal conditions and MAP treaty route. The threshold and relative deadlines are initial-law statements, not a closed 2026 filing calendar.