What is the tax regime for a startup in Côte d'Ivoire?

1. What is the tax regime for a startup in Côte d'Ivoire?

The tax implications of setting up a startup begin firstly with (1) electing a taxation regime, followed by the obligation to declare the activity, and (2) the formal filing of the constitutive documents for registration.

During operation, a startup does not benefit from any special tax regime in Côte d'Ivoire. Apart from the specifics tied to its activity, it is subject to the ordinary-law regime, subject to its eligibility for a derogatory regime.

In practice, when the startup is set up in Abidjan, electing a taxation regime and filing the documents for registration are simultaneous, thanks to the existence of a one-stop shop for company creation (CEPICI).

2. Which taxation regime should I choose to launch my startup?

The taxation regimes in force in Côte d'Ivoire — the four main ones — apply under the following conditions:

Taxation regimes	Taxpayer category	Turnover brackets
Entrepreneur Regime (RE)	Entrepreneur	0 – 50,000,000 CFA francs
Microenterprise Regime (RME)	Microenterprise	50,000,001 – 200,000,000 CFA francs
Simplified Actual Profit Regime (RSI)	Small enterprise	200,000,001 – 500,000,000 CFA francs
Standard Actual Profit Regime (RNI)	Medium and large enterprise	From 500,000,001 CFA francs

3. When should I declare my startup and what does the declaration confer?

Carrying out any profit-making activity in Côte d'Ivoire is conditional on the prior declaration of that activity.

The declaration of the activity assigns it a taxpayer account number (ncc).

4. How do I opt for a taxation regime?

In practice, the election of a taxation regime is made at the time of registration, based on a forecast turnover, which will then be adjusted (or not) at the end of the financial year.

5. What is the difference between the various taxation regimes?

The major differences between the aforementioned regimes are that the actual-profit regimes are subject to Value Added Tax (VAT), and that under the Entrepreneur and Microenterprise regimes it is not possible to have more than one establishment (shop, store, etc.) under a single taxpayer account.

6. Which documents must be registered, and within what deadline?

The documents to be submitted for the registration formality with the Ivorian Tax Administration are:

• The commercial lease agreement;
• The company's articles of association; and
• The Declaration of Subscription and Payment (DSV) or the Notarized Declaration of Subscription and Payment (DNSV), as the case may be;

The constitutive documents must be submitted for the registration formality within one month of their date, except for the commercial lease, which must be reported no later than ten (10) days after its conclusion and registered within thirty (30) days of that conclusion, on pain of a fine.

In practice, submission for registration constitutes a declaration.

7. What are the registration fees?

The constitutive documents of new companies with a share capital of 10,000,000 CFA francs or less are exempt from all registration and stamp duties.

Above a share capital of 10,000,000 CFA francs, company-formation documents are subject to a sliding-scale rate set as follows:

• From 10,000,000 CFA francs to five billion: 0.3%
• Above five billion: 0.1%

As for the lease agreement, it is subject to registration duties calculated as follows:

8. Where are the constitutive documents registered?

The constitutive documents are registered at the tax office of the place where the startup is located.

Those located in Abidjan may do so at the time of registration, at the CEPICI one-stop shop. See www.cepici.gouv.ci.

9. What are the tax obligations during operation?

Every business is bound by reporting obligations (declaration) and contributory obligations (payment) within a legal deadline, depending on whether it is subject to monthly or quarterly filings, in respect of the taxes and duties to which it is liable.

10. Does a startup enjoy any tax privileges?

Having no particular tax status, a startup has no incentive measures of its own.

However, it may benefit from the ordinary-law and specific incentive measures prescribed by the legal and tax provisions in force.

11. What are the conditions to qualify for the incentives?

Beyond registration, a startup may benefit from ordinary-law incentive measures — essentially tax credits — in the event of job creation, reinvestment of profits in Côte d'Ivoire, and investment in research activities.

When it is regarded as a Small and Medium-sized Enterprise (SME), it may benefit from tax credits for the acquisition of patents and manufacturing processes, a preferential rate on the Tax on Banking Operations (TOB) levied on bank interest, reductions on property tax, and exemption from the business licence tax (patente).

It may also benefit from specific incentive measures, provided it meets the conditions relating to the sectors of activity eligible for the incentives set out in the Ivorian Investment Code and the law governing free zones, as well as the amounts to be invested during the establishment and operation phases.

12. Under the Investment Code, is there a minimum investment threshold?

Yes, the minimum investment threshold is 50,000,000 CFA francs, and the tax advantages run from 5 to 15 years.

13. When can it benefit from these incentives?

It may benefit from the aforementioned incentives during the establishment phase if it is eligible under the conditions relating to the sector of activity and the investments to be made, as provided by the Investment Code.

In practice, prior approval must be obtained from CEPICI.

The other incentive measures, as well as those of the free zones, are obtained during the operation phase.