Real Estate Ex-patriates are afforded the same rights over land as native Ivoirians, as both can own freehold as well as leasehold in Côte d’Ivoire. Leasehold is subject to a maximum limit of 99 years for both Ivorians and ex-patriates. A land registry (Conservation de la propriété foncière et des hypothèques) exists in Côte d’Ivoire to record rights over land and provides comfort for potential investors. Both ownership of real estate as well as any rental income is subject to tax, set at 4% of the annual rental value for owner- occupied properties and 15% of the annual rental income for leasehold properties. Tax Taxes are levied at both the national and local levels of government. The primary taxes imposed on companies are corporate income tax, withholding tax, value-added tax ( VAT ) and excise tax. Excise and Customs Tax The Common External Tariff ( CEF ) duty is applicable in Côte d’Ivoire. This tariff is regulated by the Economic Community of West Africa States Union ( ECOWAS-CEDEAO in French). CEF is made up of the following permanent duties. As a member state of the West African Economic and Monetary Union ( WAEMU ), Côte d’Ivoire applies the customs rates specified in the community regulations. Customs duties are levied on the customs value of most imported goods at rates of 0%, 5%, 10% and 20%, depending on their classification. Taxable Income and Rates Côte d’Ivoire operates a territorial tax system under which tax is imposed only on profits derived by an enterprise that operates in the country. A company is considered to be resident in Côte d’Ivoire if it is registered, managed and controlled there. The tax rate is 20% for individuals and 25%for companies and companies must pay a minimum tax of 0.5% (reduced for financial institutions) of the previous year’s turnover. The minimum tax must be between F.CFA 2,000,000 (approximately USD 3,500) and F.CFA 15,000,000 (approximately USD 26,000).
Transfer Pricing Under Côte d’Ivoire’s transfer pricing rules, an indirect transfer of profits is presumed when the Ivorian tax authorities can prove that a transaction between a taxable Ivorian entity and a foreign affiliate was not conducted at arm’s length or under equitable conditions. A presumption may arise that the parties are operating in a dependent or controlled manner. Prices between controlled parties must be the same prices that would have been agreed upon between unrelated parties in a comparable transaction and under comparable circumstances. Otherwise, the Ivorian company bears the risks of adjustments and withholding taxes on the presumed transferred profits. Value-Added Tax Value-added tax ( VAT ) is payable on the sales value of a product each time it changes hands. In practice, the tax is levied on the price increment at each stage in the chain. Nevertheless, the charge is effectively borne by the end consumer, and VAT is neutral for intermediary companies. VAT is payable by all manufacturers, wholesalers and retailers, and by most service and transport businesses. Ivorian VAT rates range between 9%and 18%. Excise Taxes Excise taxes at various rates apply to sales of tobacco, alcoholic beverages and fuel. Banking, Finance and Exchange Control The bank account is opened after presentation of the whole documentation related to the entity and its parent company, plus minutes of shareholders meeting or board meeting deciding the creation of the entity in Côte d’Ivoire designating the signatories in the country. The CFA Franc is linked to the Euro at a fixed exchange rate and unlimited convertibility to the Euro is guarantee. The CFA members which are Benin, Burkina Faso, Côte d’Ivoire, Guinee Bissau, Mali, Niger, Senegal, Togo, are agreed to apply exchange control regulations of the WAEMU. Transfer within the CFA zone are no restricted. Dividends paid out of revenue and capital on disinvestment may be remitted.
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