Ivory Coast (Côte d'Ivoire)

Corporate - Deductions

Last reviewed - 20 June 2023

Depreciation and depletion

Depreciation is generally computed on a straight-line basis over the useful life of the asset (e.g. 20 years for buildings, 3 years for automobiles). Accelerated depreciation is sometimes permitted for machinery. The following depreciation rates are generally accepted for tax purposes:

Assets Depreciation rate (%)
Buildings 5
Machinery, equipment (rate depending on equipment) 8/10/20
Office furniture 10
Office equipment 20
Vehicles 33.3
Computing equipment 20 to 50

A time coefficient is applied to the rate of depreciation to obtain the declining balance. Depreciation rates may be amended, but only after agreement with the tax authorities.

New plants and equipment may be depreciated at twice the normal rate in the first year of use, provided they are depreciated over at least six years. Under certain circumstances, buildings used for staff housing may be depreciated at 40% of cost in the first year. Annual depreciation must be booked to preserve tax deductibility. The whole or any part of the annual charge can then be deferred in annual accounts for fiscal years showing a tax loss. Recaptured depreciation is taxed at full rates. Tax and book conformity is obligatory.

Depletion allowances, as such, do not exist, but tax incentives are available for exploration to replace depleted natural reserves.


Goodwill (capital gain) deriving from the transfer of assets is included in taxable profit. The gain may be exempt from the income tax basis if the taxpayer commits to reinvest the purchase price of the transferred assets plus the goodwill in the three following years.

If the reinvestment is not completed in the three years, the gain will be subject to income taxation.

Start-up expenses

Start-up expenses (e.g. legal fees, registration duties on share capital subscription, the costs of any registration procedure, advertisement expenses) have to be amortised over a period from two to five years.

Interest expenses

Interest paid to shareholders may be deducted. The deduction is limited to the interest on a loan where the amount of the loan does not exceed the company's share capital, even for local holding companies (FY19 Financial Law).

The maximum interest rate allowed is related to the Banque Central des Etats de l’Afrique de l’Ouest (BCEAO) rate plus two points.

The reimbursement of the loan must take place in the five years following the loan.

Total interest must not exceed 30% of the company's pre-tax book income before interest, depreciation, and reserve.

The company's share capital must be paid out entirely.

Bad debt

Provisions for bad debts are deductible, provided that a minimum set of collection procedures have been engaged.

Bad debts are deductible for income tax purposes unless the debt results from abnormal business decisions.

Charitable contributions

Charitable contributions to recognised sport and health associations are deductible.

Charitable contributions to individuals or non-recognised beneficiaries are not tax deductible.

Charitable contributions, in cash or in kind, to the state or local authorities for the purpose of fighting the COVID-19 pandemic are tax deductible.

Fines and penalties

Fines borne by corporations are not tax deductible.


Regular taxes paid by corporations are deductible for income tax purposes.

Third party taxes (such as WHT on non-resident service providers) borne by corporations are not tax deductible.

Other significant items

In respect to 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.

To be tax deductible, provisions must relate to existing liability or loss. General reserves are not deductible.

Net operating losses

Losses may be carried forward for five years.

Losses derived from depreciation can be carried forward indefinitely.

Losses cannot be carried back.

Payments to foreign affiliates

Reasonable royalties, interest, and management and service fees paid to foreign parent companies are tax deductible. However, the deductions should not exceed 5% of the turnover and 20% of the overhead. Otherwise, the portion exceeding the ceiling is not tax deductible. The onus is on the taxpayer to prove that expenses are justified and reflect real transactions.

Sums owed by the Ivorian company in return for an intra-group transaction that have remained unpaid for more than two years and without being subject to WHT on non-commercial profits and/or VAT on behalf of third parties are not deductible.

Where payments are made to a beneficiary located in a non-cooperative country or a tax-privileged country, deduction of sums paid is capped at 50% of their amounts. Non-cooperative and tax haven countries are those recorded on the Organisation for Economic Co-operation and Development (OECD) blacklist. Tax-privileged countries are defined as countries in which the due income tax amount is less than half of the income tax that would have been due on the same transaction in Côte d'Ivoire.

The excessive portion is added back to the CIT basis.

Deduction of expenses from group transactions is subject to the filing of a transfer pricing form. Failure to file the transfer pricing form results in the disallowing of the expenses. Filing of an incomplete or incorrect transfer pricing form results in a fine of XOF 2 million per error or omission.

CbC reporting is applicable when the group consolidated turnover threshold is met (i.e. XOF 491.97 billion).