Tax laws Ivory Coast
As of November 2024, Côte d'Ivoire's tax system encompasses various taxes applicable to individuals and corporations. Here's an overview of the key tax laws:
Corporate Income Tax:
Standard Rate: Resident companies are taxed at a rate of 25% on their worldwide income.
Telecommunication, IT, and Communication Sectors: Companies operating in these sectors are subject to a higher tax rate of 30%.
Non-Resident Entities: Non-resident entities without a permanent establishment in Côte d'Ivoire are subject to a withholding tax of 20% on income sourced from the country, unless reduced by applicable double tax treaties. citeturn0search0
Minimum Tax:
A minimum tax is imposed based on total turnover, calculated at a rate of 0.5%.
The minimum payable amount is XOF 3 million, with a cap at XOF 35 million.
This tax is due even if the standard corporate tax exceeds the minimum tax, ensuring a baseline tax contribution from all companies. citeturn0search0
Personal Income Tax:
In September 2023, Côte d'Ivoire reformed its taxation on salaries and wages by merging three previous taxes into a single progressive tax.
The new tax rates are applied monthly as follows:
| Monthly Income Bracket (XOF) | Tax Rate (%) |
|---|---|
| 0 – 75,000 | 0% |
| 75,001 – 240,000 | 16% |
| 240,001 – 800,000 | 21% |
| 800,001 – 2,400,000 | 24% |
| 2,400,001 – 8,000,000 | 28% |
| Above 8,000,000 | 32% |
This progressive system replaces the previous mixed taxation approach, aiming for a more equitable tax structure. citeturn0search1
Value Added Tax (VAT):
Standard Rate: The standard VAT rate is 18%, applicable to most goods and services.
Financial Services: A reduced rate of 10% applies to fees and commissions charged by financial institutions; however, interest is exempt from VAT. citeturn0search2
Property and Other Taxes:
Property Tax: Rates range from 1.5% to 15%, depending on land use.
Property Transfer Tax: A 4% tax is levied on property sales, while lease transfers or business transfers incur a 10% tax.
Payroll Tax: Employers pay 2.8% for local employees and 12% for expatriate employees.
Social Contributions: Employers contribute to social security funds, including 5.75% for the Family Allowance Fund, between 2% and 5% for industrial accident insurance, and 7.7% for the pension fund. citeturn0search5
Recent Developments:
In March 2024, Côte d'Ivoire signed the Resilience and Sustainability Facility with the International Monetary Fund (IMF) to implement reforms aimed at adapting to and mitigating the impacts of climate change on the national economy.
The government adopted the Medium-Term Revenue Mobilization Strategy for 2024–2028, focusing on maximizing tax and customs revenue collection to strengthen the Ivorian economy. citeturn0search6
These measures reflect Côte d'Ivoire's efforts to enhance its tax system, promote economic growth, and ensure fiscal sustainability.
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