Accounting and tax

1. The regular corporate tax rate for companies registered in Ivory Coast is 25% on all profits. Companies running at a loss are however taxable at a rate of 0.5% on the turnover from the preceding year. The tax year in Ivory Coast is the calendar year and annual tax returns must be filed by 30^th April of the subsequent year. Taxes must be filed in three advance installments i.e. on the 20^th of April, 20^th of June and 20^th of September annually;
2. Branches pay a corporate tax rate of 25% plus an additional 12% withholding tax on branch remittances. If the profit is exempt from corporate tax, the withholding tax on branch remittances is 18%;
3. In Ivory Coast, VAT is levied at a flat rate of 18%. All VAT returns must be submitted by the 10^th, 15^th or 20^th of every month;
4. Capital gains tax in Ivory Coast is subject to the standard applicable corporate tax rate. However, holding companies are either tax exempt or taxed at a rate of 12%;
5. Withholding tax is levied in Ivory Coast on dividends at a rate of 18%, but only if corresponding profits have been exempted from corporate tax. Listed companies also benefits from a reduced 10% rate;
6. Capital losses can be carried forward for up to five years or indefinitely to the extent they arise from capital allowances;
7. Employers must submit to the relevant authorities i) payroll tax at the rate of 12% of gross salary for expatriate staff and 2.8% for local staff and ii) social security contributions levied at rates of up to 20% of their employees’ gross salaries;
8. Transfer tax is levied at the rate of i) 7% on real property ii) 7% on business transfers;
9. Real property is taxed at the rate of 4% on rental income and 11% on ownership interests. Business entities pay 15% property tax on the market rental value of property owned and used;
10. Exchange-control regulations exist in Ivory Coast for financial remittances outside the West African Economic and Monetary Union (UEMOA);
11. Ivory Coast has signed multilateral tax treaties with the other member states of UEMOA which include Benin, Burkina Faso, Cote d’Ivoire, Guinea-Bissau, Mali, Niger, and Togo. Ivory Coast has also signed bilateral tax treaties with Belgium, Canada, France, Germany, Italy, Morocco, Norway, Switzerland, Tunisia and the United Kingdom.

Healy Consultants Compliance Department will assist our Clients with i) documenting and implementing accounting procedures ii) implementing financial accounting software iii) preparation of financial accounting records and iv) preparing forecasts, budget and sensitivity analysis.