Ivory Coast: Business Environment

Company Tax

25% (standard rate)

Tax Rate For Foreign Companies

Non-resident companies with a permanent establishment are subject to the same tax rates as resident firms but only on their local income. Non-resident companies without a permanent establishment are subject to a withholding tax of 20% on their local income.
Companies are considered resident in tax jurisdictions where they have a registered fixed establishment (e.g. subsidiaries, branches, representative offices).

Capital Gains Taxation

Capital gains are included in taxable income and taxed at the standard corporate tax rate. In certain cases, the tax can be deferred if the gain is reinvested within three years (exclusive of recaptured depreciation).

Main Allowable Deductions and Tax Credits

Amortisation of tangible and intangible assets is tax-deductible at rates ranging from 5% to 50%. Depreciation rates may be doubles for new plants and equipment in the first year of use. Goodwill from the transfer of assets is included in taxable profit but positive goodwill may be deducted if the taxpayer agrees to reinvest the amount during the three years succeeding these gains. Start-up costs must be amortised over a period of two to five years.
Interest charges may be deducted if the interest in question is of a loan the amount of which does not exceed the capital of the company. Interest expense cannot exceed 30% of the company's earnings before interest, taxes, depreciation and amortisation. The reimbursement of the loan must take place in the five years following the loan.
Bad debts are generally deductible. Donations to charitable organisations in the field of sport and health are deductible, same as for those made to fight the COVID-19 pandemic. Fines and penalties are not deductible. Taxes are generally deductible (with the exception of withholding taxes). Concerning legal reserves, 10% of net profit must be transferred to a reserve for legal fees until the reserve equals 5% of the paid-up share capital.
Tax losses can be carried forward up to five years, whereas losses derived from depreciation can be carried forward indefinitely. The carryback of losses is not permitted. Royalties, interest, and management and service fees paid to foreign parent companies are tax-deductible, capped at 5% of the turnover and 20% of the overhead.

Other Corporate Taxes

The property tax varies from 1.5% to 15% depending on the use of the land. Property transfer taxes are 4% (sales) or 10% (lease transfer or business transfers). Stamp duties vary based on the deed and are also levied on the purchase of vehicles or pleasure boats.

The payroll tax is 2.8% for local employees and 12% for expatriate employees.
Social contributions payable by the employer are as follows: 5.75% of the salary for the Family Allowance Fund, between 2% and 5% for the industrial accident insurance, and 7.7% for the pension fund. Family allowance and work injury are capped at XOF 70,000 per month each, whereas a ceiling of XOF 2,700,000 applies to the retirement pension.

All taxpayers pay a special tax (special equipment tax) equivalent to 0.1% of their turnover for the equipment and investment needs of the Directorate General for Taxation. This tax was due to be abolished by 31 December 2019; however, since 2020 financial law it became a permanent tax.

Business franchise tax, payable by all companies, is composed of a duty on the turnover and a duty on the rental value. The first contribution is 0.5% of turnover and is capped at XOF 3 million (minimum XOF 300,000). The second contribution is 18.5% of the rental value of the business premises.

A cumulative 10% tax applies to money transfer transactions handled by banks. The 18% VAT applies to transactions managed by other types of financial institutions.
Capital duty ranges from 0.1% to 0.3%. The capital increase is taxed at 6%.
Insurance premiums are taxed at rates ranging from 0.1% (export credit) to 25% (fire) depending on the nature of the contract.

A special tax of 5% is levied on the turnover of telecommunication and communication companies. The tax has been extended to mobile money transfers. The services provided by telecommunication companies are subject to a special tax of 3%. A tax on audiovisual communication has been introduced in 2022, amounting to XOF 20,000 per hour or fraction of an hour of advertising broadcast on advertising messages from non-resident companies. The companies that broadcast in the country are liable for the tax.

Rental income is subject to a 300% surtax if its amount exceeds the two-month guarantee and one-month upfront payment at the beginning of the lease.

Other Domestic Resources

Consult Doing Business Website, to obtain a summary of the taxes and mandatory contributions.

Tax Rate

Allowable Deductions and Tax Credits

A standard 20% deduction applies to gross taxable income and usually covers all items of non-business expenses. A standard 15% deduction applies to business expenditure, including travel and representation costs (applied to the adjusted gross income, derived by first calculating the 20% standard deduction and deducting IS and CN). Other expenses deductible from general income include life subsistence allowances paid to dependent parents or a spouse (with ratios or "parts" increased based on the number of dependents).

Special Expatriate Tax Regime

Resident individuals are taxed on their worldwide income, whereas non-residents are only taxed on their locally-sourced income. There is no special expatriate tax regime.