Generally, all business expenses are allowed as a deduction, unless specifically disallowed. The following expense types are not deductible or have limited deductibility for Chad tax purposes:

Income tax and fines and penalties are not deductible;
Personal expenses are not deductible;
Insurance premiums paid for a third party are not deductible;
The deduction of interest expenses on shareholders’ loans is limited to interest charged at the central bank rate plus 2 basis points (see Sec. 13.2.);
Donations are deductible within 0.5% limit of the annual turnover, net of tax, when justified and approved by the Ministry of Finance;
Foreign social security contributions paid towards a foreign compulsory retirement plan are deductible only within 15% of the base salary of the expatriates. Travel expenses for expatriates and their families for vacation are deductible, limited to one trip per year;
Restaurants, hotels, receptions and related costs are deductible within a 0.5% limit of the turnover, net of tax. Airline companies are exempted from the limitation effective 1 January 2020;
Effective from 1 January 2018, the deduction of general administrative and foreign technical assistance costs (including study expenses, technical assistance, interest, and royalties) paid to a foreign holding enterprise located outside the CEMAC zone is limited to a cap of 10% of taxable income, subject to certain conditions;
Effective from 1 January 2018, the deduction of payments to beneficiaries located in tax haven jurisdictions is capped at 50% (see Sec. 13.1.);
The deduction of commission or brokerage fees paid on behalf of Chadian companies is capped at 5% of purchased imports and sale of exports;
Payments to local suppliers without reference to a Chadian tax identification number are non-deductible; and
Effective from 1 January 2018, expenses incurred in relation to transactions with related parties for which transfer pricing documentation is not provided upon request to the tax authority are not deductible; and
Effective 1 January 2020, expenses paid in cash in excess of XAF 500,000 are not deductible.

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