Article 21 to 23 of Loi 031 du 29 Decembre 2023 Portant loi de Finances pour l’exercice 2024, amends the provisions of article 837 to 839 of the CGI as of 1 January 2024.
Fonds d’Intervention Rurale (FIR), which is known as the Rural Intervention Fund in English, funded by ONASA has been replaced with Le Prelevement pour la Securite Alimentaire (PSA). This is known as the Food Security Levy in English.
ONASA/FIR was funded by a contribution due from any natural person residing in Chad liable to civic tax or personal income tax. The rate of the contribution was set at FCFA 100 for people subject to the civic tax and FCFA 480 per annum (i.e., FCFA 40 per month) for people liable to I.R.P.P. The contribution to ONASA is established, collected and settled in the same way as civic tax and personal income tax.
As of 1 January 2024, The Food Security Levy (PSA) is owed by:
- employees from the public sector,
- the formal private sector as well as
- Chadian employees residing abroad and contributing to the CNPS.
The rate of the Food Security Levy (PSA) is set at FCFA 400 per month and per employee referred to in Article 837. The Food Security Levy (PSA) is established, collected and settled in the same way as personal income tax.
Click here to view Loi 031 du 29 Decembre 2023 Portant Loi de Finances pour l’exercice 2024.
How Does It Work?Â
- The deduction component, ‘FIR’ (Tax code: FIREE), has been renamed to ‘Food Security Levy (PSA)’. This component calculates a month-to-date value of 400.00.
- The deduction component, ‘FIR Adjustment’ (Tax code: FIREE), has been renamed to ‘Food Security Levy (PSA) Adjustment’.
Impact of the Chad Finance Act Change 2024 on PaySpace
- The change is effective from 1 January 2024.
- All open runs in Chad will be recalculated.
- If the January payroll is already closed, attach an interim run to January 2024 called Chad_FA StatutoryUpdate, which will not be billed. Customers should take note of the ‘Negative net pay on payslip’ warning message on the interim payslip of affected employees and decide on the most suitable course of action.
Alternatively, adjustments can be applied by using the deduction component, Food Security Levy (PSA) Adjustment, when the main run opens in February.
Should you have any questions regarding the Chad Finance Act Change 2024, please feel free to visit our Support page for more ways to get in touch, or email us at [email protected]
The PaySpace Team