In Côte d'Ivoire, the Caisse Nationale de Prévoyance Sociale (CNPS) is the primary social security institution. Employers are required to contribute a significant portion of employee salaries to various CNPS programs. The standard employer contribution to the CNPS is 15.75% of an employee's gross salary.

This 15.75% employer contribution is divided as follows:

• Retirement (IVM): 7.7%
• Family Allowances: 5.75%
• Work-Related Injury Insurance: 2% to 5% (depending on industry risk level)

In addition to the CNPS contributions, employers may need to withhold a solidarity surcharge on behalf of high-earning employees under the Impôt Général sur le Revenu (IGR).

Responsibilities of Employers

Employers have several responsibilities when it comes to social security contributions:

• Registration: Employers must register with the CNPS and obtain a company identification number.
• Calculation and Payment: Employers must accurately calculate CNPS deductions, along with any other applicable contributions, and remit them to the CNPS on time.
• Record-Keeping: Employers must maintain accurate records of employee earnings, contributions, and submissions to the CNPS.

Important Notes

There's a monthly contribution ceiling for retirement (IVM). Employers should stay informed about potential changes to social security rates or regulations. If managing payroll and tax contributions seem complex, consider using professional payroll providers specializing in Côte d'Ivoire.

In Cote d'Ivoire, payroll taxes are set at 2.8% for local employees and 12% for expatriate employees. The tax base includes total taxable remuneration, which encompasses salaries, benefits, and benefits in kind.

Social Security Contributions

Employees contribute 6.3% of their taxable salary to the CNPS Retirement Fund. The ceilings for these contributions are XOF 3,375,000 per month for the CNPS Retirement Fund and XOF 70,000 per month for other contributions.

Standard Deductions

A general deduction of 20% of gross taxable income is available, covering most non-business expenses. Additionally, employment expenses can be deducted at 15% of gross income for business-related expenses.

Additional Deductions

Additional deductions may be available for life subsistence allowances paid to dependent parents or a spouse, and personal allowances for individuals meeting specific criteria.

Key Points

Expatriate employees face a higher payroll tax rate than local employees. Social security contributions are shared between employees and employers. Standard deductions can significantly reduce taxable income, and additional deductions may be available for certain expenses or circumstances.

VAT is the primary indirect tax in Cote d'Ivoire, imposed on consumption. It applies to most goods and services, with certain exceptions. The standard VAT rate is 18%, while a reduced rate of 9% applies to specific items like milk, pasta, and solar energy equipment.

Taxable Services

Most services provided in Cote d'Ivoire are subject to VAT. This includes professional services, rental services, telecommunications services, and more. Exceptions include wages, agricultural activities, financial services (except leasing), and insurance services.

VAT Registration

Businesses with an annual turnover exceeding 50 million CFA francs are required to register for VAT. Non-resident digital service providers must register, regardless of whether they meet the turnover threshold.

VAT Compliance for Digital Service Providers

In 2024, a simplified VAT compliance mechanism was introduced for non-resident digital service providers. This mechanism enables providers to collect and remit VAT on digital services supplied to customers in Cote d'Ivoire. Covered services include online advertising, data services, online marketplaces, digital content, online gaming, cloud computing, social networks, and search engines (to the extent they offer paid services).

VAT Rates

The standard rate for VAT is 18%, and the reduced rate is 9% for specific items.

VAT Returns and Payments

VAT returns are typically filed monthly. Payment deadlines vary depending on the business's annual turnover.

VAT Refunds

Businesses can claim VAT refunds for excess input VAT incurred on business-related expenses.

Côte d'Ivoire's Investment Code provides the main framework for tax incentives to encourage and attract investments in specific sectors.

Types of Incentives

Eligible businesses may receive temporary exemptions from or reductions of corporate income tax, customs duties on imports of equipment and materials, and property taxes. Businesses engaged in certain sectors may be eligible for deductions from taxable income. Some qualifying businesses may benefit from faster depreciation rates for their fixed assets.

Eligible Sectors

The Code provides incentives for sectors such as agriculture and agri-processing, manufacturing, tourism, information and communications technology (ICT), and housing. Businesses making significant contributions to economic development may be eligible for specific incentives under individually negotiated agreements.

Additional Incentives

Companies operating in designated Special Economic Zones may benefit from additional tax and regulatory advantages.

Applying for Incentives

CEPICI is the primary agency for assisting investors and facilitating access to tax incentives. The process involves submitting detailed business plans and financial projections along with the application to CEPICI.