DGI Audits: How to Prepare Your DRC Business for Tax Scrutiny

Introduction

The Direction Générale des Impôts (DGI) is the primary authority responsible for tax administration in the Democratic Republic of Congo (DRC). A DGI audit is a systematic review of a company’s financial records and tax filings to verify compliance with corporate income tax, VAT, and other statutory obligations.

For businesses operating in the DRC—whether local SMEs or multinational subsidiaries—preparing for a DGI audit is critical. Proper preparation ensures compliance, reduces the risk of penalties, and maintains a good relationship with tax authorities.

This guide provides actionable steps to prepare your business for a DGI audit, highlighting common triggers, documentation requirements, and best practices for smooth audit outcomes.

1. Understanding DGI Audits

A DGI audit evaluates whether a company has:

• Paid the correct corporate income tax (CIT).
• Properly reported Value Added Tax (VAT) and other indirect taxes.
• Complied with statutory obligations for payroll, withholding taxes, and social contributions.

Types of DGI Audits:

1. Routine Audit: Standard annual review of filings and accounts.
2. Targeted Audit: Focus on specific transactions, VAT refunds, or unusual deductions.
3. Investigation Audit: Triggered by discrepancies, complaints, or suspicious financial activity.

Audits may occur on-site at company premises or remotely, depending on the scale and complexity of the business.

2. Common Triggers for DGI Audits

Understanding why the DGI selects businesses for audits can help companies anticipate scrutiny:

• Large VAT refunds: Frequent or unusually high refund claims.
• Discrepancies in filings: Mismatches between reported income, expenses, and bank transactions.
• Rapid revenue growth: Significant changes in turnover without corresponding documentation.
• Related-party transactions: Inadequately documented payments or loans to affiliated companies.
• Previous non-compliance: Late tax filings or penalties in past years.
• Sector-specific scrutiny: High-risk industries like mining, import/export, and construction.

Being aware of these triggers allows businesses to proactively maintain transparent records and avoid unnecessary scrutiny.

3. Preparing Your Documentation

Proper documentation is the backbone of audit readiness. Ensure that all records are:

• Accurate
• Complete
• Up-to-date

Key Documents for a DGI Audit:

1. Financial Statements: Balance sheet, income statement, and cash flow statements.
2. General Ledger: Detailed account of all transactions.
3. VAT Returns and Invoices: Both output and input VAT records.
4. Corporate Tax Filings: CIT declarations and supporting schedules.
5. Payroll Records: Salaries, IRPP deductions, CNSS contributions, and related documentation.
6. Contracts and Agreements: Supplier contracts, customer agreements, and intercompany transactions.
7. Bank Statements: Supporting reconciliation of all accounts.
8. Import/Export Documentation: Customs declarations and proof of VAT on imports/exports.

All documents should be organized chronologically and readily accessible to auditors.

4. Internal Audit and Pre-Audit Review

Before a DGI audit, conducting an internal audit is highly recommended:

• Identify errors or omissions in filings.
• Reconcile accounts, VAT returns, and tax payments.
• Correct minor errors proactively before the audit.
• Prepare explanations for unusual transactions or significant adjustments.

This internal review reduces surprises during the DGI inspection and demonstrates a commitment to compliance.

5. Employee and Staff Preparedness

Staff handling finance, accounting, or operations should be aware of audit procedures:

• Assign a point of contact for DGI auditors.
• Ensure staff can explain transactions clearly and provide supporting documentation.
• Train employees on record-keeping best practices and legal obligations.

Clear communication and professional conduct during the audit can positively influence auditor perception.

6. During the DGI Audit

Key Steps:

1. Official Notification: The DGI typically issues a formal letter specifying audit scope and dates.
2. On-Site Inspection: Auditors may review physical and digital records at company premises.
3. Clarifications: Be prepared to answer queries and provide supporting evidence promptly.
4. Audit Report: After review, auditors issue a preliminary report highlighting findings, discrepancies, or additional assessments.
5. Resolution: Companies can address minor errors, provide explanations, or appeal incorrect assessments before finalizing tax obligations.

Professionalism, transparency, and timely responses reduce audit risk and potential penalties.

7. Common Pitfalls to Avoid

• Incomplete documentation: Missing invoices or bank records raise red flags.
• Late filings: Delayed VAT, payroll, or CIT submissions may trigger fines.
• Poor record organization: Disorganized files cause unnecessary delays and scrutiny.
• Ignoring prior audit findings: Repeating past mistakes signals non-compliance.
• Lack of tax strategy: Failure to plan for deductions, refunds, or exemptions increases exposure.

8. Best Practices for DGI Audit Readiness

• Maintain organized and digitized financial records for easy retrieval.
• Schedule quarterly internal audits to catch errors early.
• Ensure all tax filings are accurate and submitted on time.
• Engage qualified accountants familiar with DRC tax law and audit procedures.
• Document policies and approvals for all financial and operational decisions.
• Regularly review tax law updates from the DGI to stay compliant.

9. 2025 Updates and Digital Compliance

The DRC is gradually digitizing tax administration, with new initiatives including:

• E-filing of tax returns for CIT and VAT.
• Digital VAT refund applications to reduce delays.
• Integrated risk-based audits, where DGI systems flag anomalies automatically.

Companies should embrace digital record-keeping and reporting to improve transparency and streamline audit preparation.

Conclusion

A DGI audit can be a straightforward process for companies that maintain proper records, comply with tax obligations, and proactively prepare for scrutiny.

Key takeaways:

• Understand audit triggers and maintain transparent documentation.
• Conduct internal pre-audits to correct errors early.
• Train staff to interact professionally with auditors.
• Leverage digital systems and professional advisors for accuracy.

By following these best practices, businesses can minimize audit risk, avoid penalties, and ensure compliance with the DRC’s tax regulations.