Cote d'IvoireTax Obligations Detailed

Employers in Côte d'Ivoire have various tax obligations related to payroll, corporate income, and other levies.

Payroll Taxes

• Employer Contributions: Employers contribute a percentage of the employee's salary towards social security, family allowance, and other funds. These include:
  • 7.7% for retirement (capped at 2,700,000 XOF annually)
  • 5.75% for the Family Allowance Fund (capped at 70,000 XOF monthly)
  • 2%-5% for Industrial Accident insurance, depending on the risk level of the role (capped at 70,000 XOF monthly).
  • Apprenticeship tax of 0.4% of the total gross salary.
  • Training tax of 0.6% of the total gross salary. For foreign employees, there's an 11.5% employer contribution calculated on 80% of their gross remuneration.
• Employee Contributions: Employees contribute 6.3% of their salary for the CNPS Retirement Fund.
• Payroll Tax: A payroll tax applies to the total taxable remuneration, including salaries, benefits, and benefits in kind. The rate is 2.8% for local employees and 12% for expatriate employees.

Corporate Income Tax (CIT)

• Rate: The standard CIT rate in Côte d'Ivoire is currently 25%.
• Deadline: Companies subject to audit requirements must file by June 30th, while others have a May 30th deadline. CIT is generally paid in installments throughout the year, usually by the 20th of March, June, and November.
• The 2025 tax appendix may introduce changes. It was adopted in November 2024 and will likely be effective from January 2025, after publication in the Official Gazette.

Other Taxes

• Value Added Tax (VAT): The standard VAT rate is 18%. Some goods and services are exempt.
• Special Equipment Tax: All taxpayers pay a special equipment tax of 0.1% of their turnover.

General Tax Administration

Monthly tax returns are required for both employee tax and the employer's payroll tax. Payment deadlines generally fall on the 10th, 15th, or 20th of the month, depending on the company's sector and registration with the tax administration.

Note: This information is current as of February 5, 2025, and is subject to change. Always consult with a tax professional for the most up-to-date and specific advice.

In Côte d'Ivoire, employee tax deductions encompass various areas, including income tax, social security contributions, and other levies.

Income Tax (Impôt sur le Revenu des Personnes Physiques - IRPP)

As of January 1, 2024, the previous three separate taxes (IS, CN, and IGR) have been merged into a single payroll tax (ITS). This single tax utilizes a progressive tax table with six brackets. The top marginal tax rate is 60%. A zero-rate tax bracket exists for monthly taxable income less than 75,000 XOF.

Social Security Contributions

Employees contribute 6.3% of their salary to the Caisse Nationale de Prevoyance Sociale (CNPS) Retirement Fund. The employer contributes an additional 7.7%, totaling 14%. The monthly ceiling for the CNPS Retirement Fund is 3,375,000 XOF. Other social security contributions, such as family allowances (5.75%) and work injury (2% to 5%), are paid by the employer.

Other Taxes and Deductions

• Payroll Tax: Employers pay a payroll tax of 2.8% for local employees and 12% for expatriate employees on total taxable remuneration, including salaries, benefits, and benefits in kind.

Tax Administration and Deadlines

• Employers withhold employee taxes and file monthly returns for both employee tax and employer payroll tax.
• Adjustment declarations are filed annually by May 30th for most companies and June 30th for companies subject to audit requirements.
• Tax payments for companies registered with 'Direction des Grandes Entreprises' and 'Direction des Moyennes Entreprises' are due by the 10th of each month (industrial, mining, and oil companies), the 15th (sales companies), or the 20th (service providers). Other companies have a deadline of the 15th of each month. Very small taxpayers and those under the micro-enterprise regime have a deadline of the 10th.

Note: This information is based on the latest available data as of February 5, 2025, and might be subject to change. Consulting official government resources or tax professionals is recommended for the most current and precise details.

In Côte d'Ivoire, the Value Added Tax (VAT) is a consumption tax applied to most goods and services.

VAT Rates

• Standard Rate: 18% applies to most goods and services.
• Reduced Rate: 9% applies to essential goods like milk (excluding yogurt and other dairy products), infant formula, luxury rice, meat imported from outside the Economic Community of West African States (ECOWAS), and pasta made entirely from durum wheat semolina.
• Zero Rate: 0% applies to exports and transactions treated as exports. Equipment for solar energy production is also exempt.

VAT Registration

Businesses with an annual turnover exceeding XOF 200 million are required to register for VAT. Companies involved in import or export activities must register regardless of turnover. Businesses with turnovers between XOF 100 million and XOF 200 million may register voluntarily.

VAT Filing and Payment

Registered businesses must file VAT returns and remit payments quarterly. The deadline for filing and payment is the 20th of the month following the end of each quarter (e.g., April 20th for Q1). Electronic filing and payment are facilitated through the e-impôts portal of the tax administration.

Invoicing Requirements

• B2C Transactions: No specific invoicing requirements exist. Businesses can follow their standard practices.
• B2B Transactions: Invoices must include specific information, including the customer's name, taxpayer account number, service description, service date, and the amount involved. This enables B2B customers to deduct input VAT.

VAT on Digital Services

Non-resident providers of electronic services, including B2B and B2C, are subject to VAT. A simplified registration process is available. Returns and payments are due quarterly by the 15th of the month following the reporting period.

Other Indirect Taxes

• Customs Duties: Import duties vary from 0% to 35% based on the product classification in the customs tariff. Additional levies include a 1% statistical duty, 0.8% community solidarity levy, 0.2% African Union import tax, and a 0.5% community levy.
• Withholding Tax: A 20% withholding tax applies to payments for electronic services provided or used in Côte d'Ivoire to foreign suppliers situated in countries lacking a double taxation agreement with Côte d'Ivoire.

2025 Tax Appendix Highlights

The 2025 Tax Appendix introduces several changes to the tax system, including revisions to withholding taxes on corporate income tax and VAT to improve business competitiveness and stipulations for mandatory electronic invoicing starting January 2025.

It's important to note that this information is current as of February 5, 2025, and tax regulations are subject to change. Consulting with a tax professional is advisable for specific guidance.

Côte d'Ivoire offers various tax incentives to attract investment and stimulate economic growth.

General Tax Incentives

• Tax on Industrial and Commercial Profits (BIC) Reinvestment Deduction: Businesses reinvesting profits in Côte d'Ivoire can deduct a portion of these reinvested profits from their BIC. The minimum reinvestment amount is 100 million CFA francs. This incentive is not applicable to investments financed by loans or other means besides reinvested profits.

Investment Code Incentives

Côte d'Ivoire's Investment Code provides incentives based on business location (Zones A, B, and C).

• Zone A (Abidjan district): Incentives for Zone A may vary depending on the specific industry and investment size.
• Zone B (Cities with at least 60,000 inhabitants): Similar to Zone A, incentives in Zone B are subject to specific conditions based on the nature of the investment.
• Zone C (Cities with less than 60,000 inhabitants and special economic zones): This zone offers the most attractive incentives:
  • Exemption from corporate income tax: Full exemption for the first 13 years, partial exemption for years 14 and 15.
  • Exemption from business license tax: Full exemption for the first 13 years, partial exemption for years 14 and 15.
  • Reduction in employer contributions: Lower rates for social security contributions.

Free Trade Zones (FTZs)

• Customs Duty and VAT Exemptions: 100% exemption on customs duties and VAT.
• Corporate Income Tax Exemption: 0% for the first five years, 1% from the sixth year onwards, with the possibility of a tax credit. Primarily for businesses in biotechnology and information and communication technology (ICT).

Other Incentives

• Research, Development, and Technological Innovation: Tax credits and exemptions for companies engaged in these activities and those investing in them. Includes exemptions from income tax, real estate tax, and other taxes.
• Mining and Petroleum Codes: Specific incentives for companies in these sectors are detailed within the respective codes.
• Vocational Training Tax Credit: Businesses involved in training students and apprentices can receive a tax credit.
• Investment Declaration Regime (Zone C): This regime allows for a declaration process to benefit from incentives instead of a prior approval regime, applicable primarily in Zone C with a simplified procedure for investments between 200 million and 1 billion XOF.

Application Procedures

The application procedures vary based on the specific incentive. Some incentives require approval from the Centre for the Promotion of Investments (CEPICI), while others involve submitting declarations to tax authorities with details of investment plans. For sector specific incentives, such as for mining or petroleum, specific contract drafting is required.

General Information

Tax laws and regulations are subject to change. Consult with a tax advisor for the most up-to-date information and personalized guidance. This information is current as of February 5, 2025. It's crucial to verify the latest regulations with official sources or legal professionals for precise details on eligibility criteria, application procedures, and other relevant aspects.