Chad is located in central Africa and has more than 200 ethnic and linguistic groups, with Arabic and French as the 2 official languages. Agriculture, manufacturing, and oil are a few of the top industries in Chad, offering companies many opportunities for expansion and growth.
There are many types of business entities that can be set up in Chad, with varying tax rates based on the industry and type of company. It is important to ensure compliance with local regulations to avoid fines and penalties. There are many labor and payroll considerations when hiring employees in Chad including:
- Fixed-term or task-based employment contracts must be written
- Minimum wage is CFA 60,000 per month
- Income tax, social security, and health insurance contributions are withheld from employee pay
- Employers must use a Pay-As-You-Earn (PAYE) system to pay employees
- VAT tax is due monthly
- Foreign nationals must have a work permit and long stay visa if working in the country for more than 120 days
- Work permit applications require foreign workers to be medically cleared for work
- Foreign workers must obtain a work permit, resident card, long stay visa, return visa, work authorization and a labor contract to work in Chad
If you are looking to expand in Chad, or would like to improve operations there, we can help. Our cloud-based payroll technology with aggregated reporting ensures you have real-time access to your payroll across all countries and currencies. Our US-based team and in-country experts ensure you have help when you need it. Talk to us today about simplifying your payroll in Chad.