- Martin Wieslinger
It was a relief to realize that there are more expat families settling in Chad and to have someone to discuss 'culture shock' with.
Employment in Chad
Economic Overview
Chad is ranked by the United Nations in their Human Development Index as the seventh poorest country in the world, and for years it has been plagued by political and economic instability. However, although traditionally Chad’s main source of economic output was from the agricultural sector, particularly subsistence farming and fishing and cotton production, in 2003 crude oil was found in the country, and since then its economic situation has dramatically improved. Crude oil is now Chad’s biggest export, overtaking cotton by some margin shortly after it was discovered. The oil operation in Chad is run by Exxon Mobil Corporation, and is now the primary employer of expatriates in the country. Many expats and foreigners working in Chad are also employed by NGOs, or work in governmental or ambassadorial roles, the majority of which are based in N’Djamena, the capital city. Most of the local residents, however, still work in subsistence agriculture or cotton production, which together account for around 85% of all jobs in the country.
Work Permits for Chad
Foreigners wanting to work in Chad will need a permit in order to do so. Obtaining a permit to work in Chad can be a lengthy and difficult process, and as a result you are advised to start your application well in advance of your prospective moving date.
In most cases, you will already need to have secured work in Chad in order to be granted a permit to work in the country, as for part of the application your prospective employer may need to prove that no Chadian citizen can take your prospective role. Your employment contracts may also need to be approved by the relevant authorities before the permit can be granted.
Usually your application will need to be made from within your home country, and all documents will need to be translated into either Arabic or French, which are Chad’s two official languages. For more information on applying for permits to work in Chad, you are advised to contact your local embassy or consulate in your home country.
Income Taxation in Chad
All residents working in Chad are required to pay income tax on their earnings, including foreigners and expatriates. However, as an expatriate, the amount of income on which you will pay tax at Chadian rates depends on your residency status in the country. If you qualify as a resident of Chad for tax purposes, by which it means that you live and work in Chad for more than 183 days in the fiscal year, then you will be charged income tax at Chadian rates on your worldwide income. However, if you live and work in Chad for less than 183 days in the fiscal year, you will be charged income tax at Chadian rates on your Chadian income only. The income tax rates for expatriates working in Chad for 2014 were as follows:
- Up to 300,000 XAF — 20%
- Between 300,000 and 800,000 XAF — 25%
- Between 800,000 and 1,000,000 XAF — 30%
- Between 1,000,000 and 1,500,000 XAF — 40%
- Between 1,500,000 and 2,000,000 XAF — 45%
- Between 2,000,000 and 3,000,000 XAF — 50%
- Between 3,000,000 and 6,000,000 XAF — 55%
- More than 6,000,000 XAF — 60%