Ivory Coast (Côte d'Ivoire)
Value-added tax (VAT)
VAT is a non-cumulative tax levied on the sale of goods and services at the rate of 18%. Subject to certain restrictions, VAT is recoverable.
The rate is reduced to 9% for milk (excepted yogurt and other dairy products), infants milk and homogenised and composite preparation foods for infants, luxury rice, meat imported outside the Economic Community of West African States (ECOWAS), pasta products that contain 100% durum wheat semolina, and equipment designed for the production of solar energy.
For effective taxation in terms of VAT, online sales and digital services via platforms, the 2022 tax annex provides for simplified procedures for remote registration, declaration and remote payment.
Customs duties rates range from 0% to 35%, depending on the classification of the imported goods according to the customs tariff.
Upon import, goods are also subject to the statistical duty (1%), to the community solidarity levy (0,8%), to African Union import tax (0,2%), to community levy (0.5%), and to VAT (18%).
Special taxes, depending on the nature of the imported goods, may apply, such as excise duties.
The economic partnership agreement between Côte d’Ivoire and the European Union (EU) for customs tariffs dismantling is effective since January 2019.
According to this economic agreement, the products from the European Union covered by the tariff lines concerned are duties free when imported in Côte d’Ivoire.
The exemption only concerns the customs duties, excepting the community levies, statistical duty, and domestic consumption taxes due on importations.
The statistical duty is levied together with the customs duties during the customs clearance procedures of imported goods.
The rate of the statistical duty is 1% on the cost, insurance, and freight (CIF) value of the imported goods.
The community levy is due together with the customs duties during the customs clearance procedures of imported goods.
The rate of the ECOWAS community levy is 0.5% on the CIF value of the imported goods.
Products imported from outside the West African Economic and Monetary Union (WAEMU) remain subject to the community levy at 0.8% for five years from January 2015.
The community levy does not apply to goods imported from member countries of the WAEMU, which includes Côte d'Ivoire, Senegal, Burkina Faso, Mali, Benin, Togo, Niger, and Bissau Guinea.
African Union import duty
A duty called the African Union import tax applies on imports of items outside the African Union at the rate of 0.2%.
Excise duties apply on cigarette imports, alcoholic or non-alcoholic beverages, and oil products.
Excise duties on tobacco are extended by FY 22 Financial law to electronic cigarettes, pipes and their parts, preparations for pipes, products and materials for shisha and electronic cigarettes.
The FY19 Financial Law has extended excise duties (10%) to tourism vehicles with at least 13 horsepower.
Under the FY21 Financial Law, excise duties (10% or 50%) are applied to perfume and cosmetic products. The 50% rate has been reduced to 15% under the 2022 tax schedule.
Real estate tax
A real estate tax is imposed at the following rates:
- 1.5% for undeveloped lands.
- 4% on land revenue.
- 11% on developed land or 15% when the built property is used by the company itself. The rate is reduced to 4% for unoccupied buildings. The rate is 10% for unfinished constructions entered in the balance sheet of companies and legal persons.
In the case of the transfer of property through a direct sale, taxes are assessed at the following rates:
- 10% for lease transfers.
- 4% for sales of real estates.
- 10% for sales of businesses.
For mortgages, the rate is 5% for the financial lessor at the acquisition of the good and 1% for acquisition of the immovable property by the lessee from the exercise of the option.
A direct tax is paid for any document subject to a registration procedure, for an acknowledgement of a cash payment, and for bills of exchange.
Taxes are levied at the rates of 2.8% for local employees and 12% for expatriate employees on the total taxable remuneration, including salaries, benefits, and benefits in kind.
Social security contributions
Employers must contribute to the social security system (CNPS) at the following rates:
|Contribution||Contribution rate (%)||Monthly ceiling (XOF)|
|Work injury||2.0 to 5.0||70,000|
Special tax for equipment
A special tax is paid by all taxpayers for the purpose of the equipment of the government. The tax is calculated on 0.1% of total turnover and is paid monthly. This tax, which was originally scheduled to end on 31 December 2019, is now a permanent tax since the FY20 Financial Law.
Business franchise tax
The business franchise tax includes a turnover tax and a proportional tax. The turnover tax is calculated on turnover at the rate of 0.5%, with a minimum tax of XOF 300,000 and a maximum tax of XOF 3 million. The proportional tax rate is 18.5% and is based on the rental value of the professional office location (based on general office rents).
Tax on banking operations
A cumulative tax of 10% is levied on bank services rendered. Tax on banking operations charged by banks to companies is fully deductible from output VAT.
Registration of capital contributions is taxed, whether the capital contribution or increase in capital is made in cash or in kind. The rate is 0.3% for contributions exceeding XOF 10 million to XOF 5 billion and 0.1% for contributions over XOF 5 billion, with a minimum tax of XOF 18,000. Increases in capital by incorporation of reserves are taxed at 6%.
In the event of a capital increase through a merger, the increase in the share capital of the acquiring company is taxed at half of the rates above.
The transfer of shares held in a company located in Côte d'Ivoire is liable to a 1% registration duty on the sale price or market value of the shares when the transfer does not trigger the disappearance of the company or the creation a new legal entity.
Tax on insurance premiums
Insurance premiums are subject to tax as follows:
|Policy type||Tax rate (%)|
|Life policies||Exempted when contract’s duration is more than three years|
|Export credit insurance||0.1|
|Other (e.g. personal liability, transportation)||14.5|
Premiums paid under commercial shipping insurance policies for maritime risks are exempt. The tax may be paid by the insurance company, its agent, or the subscriber in cases where the subscriber had to pay the premium to a foreign insurance company.
The insurance tax rates are reduced by half for insurance of religious buildings.
The above rates are halved for microinsurance contracts since FY22 Financial Law.
Tax on telecommunication companies
A specific tax of 5% is applicable on the turnover of mobile telecommunication, information technology, and communication companies.
Companies renting passive infrastructures and telecom towers to telecom companies are not within the scope of this tax.
The FY19 Financial Law has extended the application of this tax to money transfer companies via mobile networks.
Companies operating in the telecommunication, information technology, and communication sector must also invest 20% of the amount of dividends transferred abroad in bonds of the public Treasury or any borrowing instrument issued by the government of Côte d'Ivoire.
Tax on telecommunication services
A special tax of 3% is applicable on telecommunication services provided to the public. The tax is invoiced and collected by companies operating mobile or land telecommunication and Internet services in Côte d'Ivoire.
Surtax on rent
A special tax of 300% is applicable to the amount of rent on accommodation or professional premises that exceeds the two-month guarantee and one-month upfront payment at the beginning of the lease. The special tax is borne by the lessor.
Tax on audiovisual communication
The 2022 tax annex established a tax on audiovisual communication. The tax on due advertising messages from non-resident companies that broadcast them. The tax is payable by companies that broadcast in Côte d'Ivoire, whatever the means, advertising through the channel of television or radio channels of companies not resident in Côte d'Ivoire. The rate of the tax is set at 20,000 francs per hour or fraction of an hour of advertising broadcast.