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Ivory Coast

Country Name: Republic of Côte d’Ivoire (Ivory Coast)
Currency: West African CFA Franc (XOF)
Primary Tax Authority: Directorate General of Taxes (Direction Générale des Impôts, DGI)
Key Legislation:

  • General Tax Code
  • Value Added Tax (VAT) Law
  • Customs Code
  • Investment Code
  • Tax Procedures Law

Fiscal Authority Allocation

Centralized Fiscal System:
Côte d’Ivoire operates a centralized tax system. The Directorate General of Taxes (DGI) administers and collects taxes, including corporate income tax (CIT), personal income tax (PIT), value-added tax (VAT), and customs duties.

Corporate Income Tax (CIT)

Standard Rate: 25%
Côte d’Ivoire imposes a corporate income tax rate of 25% on resident companies and non-resident companies with a permanent establishment in the country. Special rates may apply to companies in specific industries, such as agriculture and the oil and gas sector.

Corporate Forms and Taxation:

  1. Resident Companies: Taxed on worldwide income.
  2. Non-Resident Companies: Taxed only on Côte d’Ivoire-sourced income.

Exemptions and Incentives:

  • Investment Incentives: The Investment Code provides tax holidays, reduced CIT rates, customs duty exemptions, and VAT relief for companies investing in sectors such as agriculture, manufacturing, tourism, and renewable energy.
  • Free Zones: Companies operating in Côte d’Ivoire’s free zones benefit from CIT exemptions for up to 15 years, alongside customs duty and VAT exemptions on imported capital goods and raw materials.

Goods and Services Tax (GST) / Value-Added Tax (VAT)

Standard Rate: 18%
Côte d’Ivoire imposes VAT at a standard rate of 18% on most goods and services. VAT applies to both domestic production and imports.

Exemptions:
Certain essential goods and services, such as unprocessed agricultural products, healthcare, education, and financial services, are VAT-exempt. Exports are zero-rated, allowing businesses to claim VAT refunds on inputs used in producing export goods.

Personal Income Tax (PIT)

Progressive Rates:
Côte d’Ivoire applies a progressive personal income tax system to residents’ worldwide income and non-residents’ Côte d’Ivoire-sourced income.

Resident Tax Rates for 2023 (Annual Income):

  • Up to XOF 2,000,000: 2%
  • XOF 2,000,001 to XOF 3,000,000: 5%
  • XOF 3,000,001 to XOF 5,000,000: 10%
  • XOF 5,000,001 to XOF 10,000,000: 15%
  • Above XOF 10,000,001: 20%

Non-Resident Tax Rate:
Non-residents are taxed at a flat rate of 20% on Côte d’Ivoire-sourced income.

Deductions and Allowances:
Taxpayers may deduct pension contributions, social security, and certain personal expenses, such as healthcare costs and charitable donations.

Additional Mandatory Contributions

Social Security Contributions:
Employers and employees must contribute to Côte d’Ivoire’s social security system, which covers pensions, healthcare, and other social benefits.

  • Employer Contribution: 16% of gross salary.
  • Employee Contribution: 6% of gross salary.

Withholding Taxes

  • Dividends: 15% for residents, 18% for non-residents
  • Interest: 15% for residents, 18% for non-residents
  • Royalties: 20%
    Côte d’Ivoire imposes withholding taxes on payments to non-residents, including dividends, interest, and royalties. These rates may be reduced under Côte d’Ivoire’s double taxation agreements (DTAs).

Transfer Pricing Rules

Côte d’Ivoire follows the arm’s-length principle for related-party transactions. Companies must ensure that cross-border transactions between related entities reflect market value. Transfer pricing documentation is required for companies engaged in significant related-party transactions.

Special Tax Regimes

  • Free Zones: Companies operating in Côte d’Ivoire’s free zones benefit from CIT holidays for up to 15 years, VAT exemptions, and customs duty relief on imported capital goods and raw materials. These zones aim to attract foreign direct investment and promote export-oriented industries.
  • Investment Incentives: Côte d’Ivoire offers tax holidays, reduced CIT rates, and customs duty exemptions for companies in key sectors, such as agriculture, manufacturing, and tourism.

Other Taxes

  • Customs Duties: Côte d’Ivoire applies customs duties on imports, with rates ranging from 5% to 35%, depending on the type of goods. Raw materials and essential goods may qualify for reduced or zero customs duties.
  • Excise Taxes: Excise taxes are levied on alcohol, tobacco, petroleum products, and luxury goods.
  • Property Tax: Property taxes are imposed on land and buildings, calculated based on the assessed value of the property.

Double Taxation Agreements (DTAs)

Côte d’Ivoire has signed several double taxation agreements (DTAs) with countries including France, Morocco, and members of the West African Economic and Monetary Union (WAEMU). These agreements help reduce withholding taxes on cross-border income and prevent the double taxation of income earned in Côte d’Ivoire and other jurisdictions.

Local Taxes

Local governments in Côte d’Ivoire may impose minor taxes, such as business license fees, property taxes, and local levies. However, most significant taxes, including CIT, PIT, and VAT, are centrally administered by the Directorate General of Taxes (DGI).

Compliance and Reporting

Annual Filing:
Corporate tax returns must be filed within three months following the end of the financial year. Personal income tax returns are generally due by April 30th. VAT returns are filed monthly or quarterly, depending on the size of the business.

Penalties for Late Filing:
Penalties for non-compliance or late filing include fines and interest on unpaid taxes. The DGI charges interest at 1.5% per month on overdue taxes, with additional penalties for tax evasion or underreporting.

Recent Developments

Focus on Infrastructure Development:
Côte d’Ivoire is prioritizing infrastructure projects, particularly in transportation and energy. The government is offering tax incentives, such as CIT holidays, customs duty reductions, and VAT exemptions, to attract investment in these sectors.

Mining and Energy Sector Growth:
Côte d’Ivoire’s mining and energy sectors are experiencing significant growth. The government provides tax incentives for companies engaged in mineral exploration and renewable energy projects, including CIT reductions and customs duty exemptions.

Digital Economy and E-Government:
Côte d’Ivoire is modernizing its tax administration by introducing electronic filing systems and digital tax platforms. These initiatives aim to improve compliance and transparency, making it easier for businesses to fulfill their tax obligations.

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