According to the institution, tontines are not particularly targeted by the new tax regime applying to associations.
In recent days, a new provision of the finance law imposing itself on associations has been debated. For the followers of tontines, this provision will come to strip them of their due. Indeed, Article 93 decies, provides for associations, a value added tax when they carry out taxable transactions provided for by the General Tax Code; income tax of 15% plus 10% for additional municipal cents and a quarterly deposit of 1% on the turnover of commercial activities.
But according to the Directorate General of Taxes, "a tontine that is limited to collecting the savings of its members and returning it to them at the end of a given period cannot see its members taxed on the return of their funds since it is a simple interest-free savings". To reassure the population, the DGI explains that "The new tax regime applies primarily to well-structured and formalized organizations that do not generate turnover such as ministries (projects, programs, boards, etc.), decentralized local authorities and public institutions; social organizations (social security institutions); mutuals, clubs and private circles; international and non-governmental organizations; associations".
According to the institution managed by Modeste Mopa Fatoing, "All these organizations were already legally subject to tax obligations. The absence of a regime specific to their status made their administration difficult. As such, the tax regime enshrined in the 2022 finance bill clarifies their rights and obligations while offering them more flexible procedures in view of their particularity.».
