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Central African Republic

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About

Central African Republic

Capital
Official languages
Population
Currency

ISO 4217

Bangui

French, Sango

4,829,767 (as of 2019)

Central African CFA Franc

XAF

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Economy

"The Central African Republic has a fragile economy, with a GDP of $2.7 billion in 2019. This is a decrease of 1.2% from the previous year. The country is heavily reliant on agriculture, which accounts for over half of the GDP and employs two-thirds of the population. The main exports are diamonds, timber, cotton, coffee, and tobacco. The country also has significant deposits of gold, uranium, and other minerals.

The Central African Republic has a high poverty rate, with over half of the population living below the poverty line. The unemployment rate is estimated to be around 40%. Inflation is also high, with an average rate of 8.2% in 2019.

The Central African Republic has a weak infrastructure, with poor roads and limited access to electricity. The country also has a low level of human development, ranking 186th out of 189 countries in the Human Development Index.

The Central African Republic is heavily reliant on foreign aid, with over half of the government budget coming from international donors. The country has also received significant support from the World Bank and the International Monetary Fund.

Overall, the Central African Republic has a fragile economy with a high poverty rate and weak infrastructure. The country is heavily reliant on foreign aid and is in need of significant investment in order to improve its economic situation."

Taxation

The Central African Republic (CAR) has a tax system that is regulated by the General Tax Code. The tax system is divided into two main categories: personal income tax and corporate income tax.

Personal income tax is levied on all individuals who earn income in CAR, whether they are residents or non-residents. The tax rate is progressive, ranging from 0% to 40%, depending on the income level. The first CFA 300,000 of annual income is exempt from taxation, and there are various deductions and credits available to reduce the tax liability.

Corporate income tax is levied on all businesses operating in CAR. The standard corporate tax rate is 30% on the net taxable income. However, there are various tax incentives available for certain industries and activities, such as those related to job creation and investment in certain regions of the country.

In addition to federal taxes, there are also other taxes levied on businesses operating in CAR, such as the value-added tax (VAT), which is currently 19%, and various excise taxes on certain products.

The tax year in CAR runs from January 1st to December 31st. The deadline for filing personal income tax returns and paying any outstanding tax is usually March 31st of the following year, while the deadline for filing corporate tax returns and paying any outstanding tax is generally April 30th of the following year.

Payments can be made online or in person at designated banks. Penalties for late payment or non-payment of taxes can range from fines to imprisonment, depending on the severity of the offense. Additionally, interest may be charged on any outstanding tax liability.

Overall, taxation in CAR is relatively straightforward, but the tax collection system is weak due to the country's political instability and poor infrastructure. It is important for taxpayers to consult with local tax advisors or government authorities to ensure compliance with the relevant tax regulations.

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