Corporate - Other issues

Last reviewed - 04 March 2024

Legal reserve

According to the provisions of the OHADA Uniform Act relating to commercial companies and economic interest groups, one-tenth of the year’s profits, reduced, if applicable, by any previous losses, must be put into a reserve account named 'Legal Reserve'.

The endowment of this reserve ceases to be obligatory when its value reaches one-fifth (20%) of the company share capital.

Tax regime of merger and similar operations

There is a specific tax regime derogatory from the common law applicable to the following operations:

  • Mergers.
  • Scissions.
  • Partial transfers of assets.
  • Subsidiarisation.

This regime only applies to operations performed by companies liable to CIT.

The benefit of this specific tax regime is also subject to the fulfilment of conditions listed in the Finance Act for 2015.

This Finance Act also provides the provisions applicable to the above-mentioned operations regarding the following taxes:

  • CIT.
  • VAT.
  • Registration duties.