Ivory Coast Taxes for Individuals and Businesses

Ivory Coast’s financial system is supported by a formal tax structure governing individuals and corporate entities. The Direction Générale des Impôts (DGI) is the administrative body responsible for implementing and collecting taxes according to the General Tax Code (GTC). The system includes various direct and indirect taxes that apply to income from a wide array of activities and sources.

Taxation for Individuals

An individual’s tax liability in Ivory Coast depends on their residency status. A person is a tax resident if they have a permanent home, a principal place of abode, or conduct their primary professional activities in the country. Residents are taxed on their worldwide income, while non-residents are taxed only on income from Ivorian sources. There is no distinct tax regime for expatriates.

A 2023 reform consolidated three previous schedular taxes—the salary tax (IS), the national contribution (CN), and the general income tax (IGR)—into a single, unified tax on salaries and wages. This change introduced a purely progressive tax system, replacing the former mixed proportional and progressive model. The new structure uses a single, tiered scale to calculate the tax on an employee’s gross salary, simplifying the previous calculation.

The tax on salaries and wages is calculated based on monthly income brackets with progressive rates. This system is administered through a Pay-As-You-Earn (PAYE) model, where employers withhold the tax from employee salaries. For example, monthly income up to XOF 75,000 is taxed at 0%, while income between XOF 75,001 and XOF 240,000 is taxed at 16%. The rates continue to progress up to 32% for monthly income exceeding XOF 8,000,000.

In addition to income tax, social security contributions to the Caisse Nationale de Prévoyance Sociale (CNPS) are mandatory. Employers contribute for various social benefits, including:

• Family Allowance Fund: 5.75%
• Occupational Accident Insurance: 2% to 5%
• Pension Fund: 7.7%

The contributions for family allowances and work-related injuries are calculated on salaries capped at XOF 70,000 per month. The pension fund contribution is based on a higher ceiling of XOF 2,700,000.

Corporate Taxation Framework

Entities doing business in Ivory Coast are subject to Corporate Income Tax (Impôt sur les Bénéfices Industriels et Commerciaux, or BIC). The standard corporate tax rate is 25%. However, companies in the telecommunications and information technology sectors are subject to a higher rate of 30%.

Taxable income is determined by subtracting deductible expenses from gross revenue. Companies in Ivory Coast must adhere to the OHADA (Organization for the Harmonization of Business Law in Africa) accounting system, known as SYSCOHADA. While many costs incurred for business purposes are deductible, there are specific limitations on deductions for royalties, interest, and management fees paid to foreign parent companies. These are capped at 5% of turnover and 20% of overhead.

The Ivorian Investment Code of 2018 offers tax incentives to encourage investment. Benefits can include temporary exemptions from corporate income tax and other duties. The duration of these exemptions depends on the project’s location, with greater incentives for projects outside Abidjan. For instance, investments in less developed zones may receive total exemptions for longer periods than those in the capital.

All companies are subject to a minimum tax, the Impôt Minimum Forfaitaire (IMF), at a rate of 0.5% of annual turnover. This tax is payable even if the company reports a loss. The amount paid as IMF is creditable against the corporate income tax liability if the company is profitable.

Value Added Tax and Withholding Taxes

Value Added Tax (Taxe sur la Valeur Ajoutée, or TVA) is a broad-based consumption tax applied to most goods and services transactions in Ivory Coast. It is levied on individuals or companies that engage in the purchase of goods for resale or the provision of services. The standard VAT rate is 18%.

A reduced VAT rate of 9% applies to specific items like milk and infant food preparations. Exports of goods and services are zero-rated. Certain goods and services are exempt from VAT, including medicines, some local food products, and educational activities.

The tax system also uses withholding taxes on various payments, which are withheld at the source by the payer. For non-residents, withholding tax rates apply to several payment types. These include:

• Dividends: 15%
• Interest: 18%
• Royalties: 20%

Payments to non-resident entities for services rendered in Ivory Coast, such as management or consulting fees, are also subject to a 20% withholding tax. These standard withholding rates can be reduced if a Double Taxation Agreement (DTA) exists between Ivory Coast and the recipient’s country of residence. The specific reduced rates vary by treaty.

Tax Administration and Compliance

The initial step for any individual or business entering the Ivorian tax system is to register with the Direction Générale des Impôts (DGI). This process involves obtaining a unique tax identification number, the Numéro de Compte Contribuable (NCC). The NCC is required for all tax filings and payments and serves as the primary identifier for a taxpayer.

Taxpayers must file returns on a prescribed schedule. The corporate income tax return deadline is April 30th of the year following the fiscal year’s close. Individuals with income from sources other than salaries must also adhere to specific filing deadlines.

The Ivorian government has modernized tax administration with an online portal known as e-impots. This platform facilitates the electronic submission of tax returns and payments. Taxpayers can use the portal to select the appropriate tax form, complete it with financial data, and upload supporting documentation. The portal also serves as the primary channel for making payments through bank transfers or direct online payments.