WHAT IS THE TAX REGIME FOR START-UPS IN CÔTE D’IVOIRE?
Would you like to set up a start-up in Côte d’Ivoire, but don’t know which tax regime will apply? Would you like to know when the declaration must be made? What incentives exist within the startup? Here’s how to get started.
1. What is the tax regime for start-ups in Côte d’Ivoire?
The tax implications of setting up a start-up begin with (1) opting for a tax regime, followed by the obligation to declare the activity, and (2) the formal filing of deeds for registration.
The start-up does not benefit from a special tax regime in Côte d’Ivoire. With the exception of the specificities linked to its activity, it is subject to the ordinary law regime, subject to the possibility of benefiting from a special regime.
In practice, when a start-up is set up in Abidjan, the option to opt for a tax regime and the filing of deeds for registration are simultaneous, thanks to the existence of a one-stop shop for business creation (CEPICI).
2. Which tax system should I use to launch my start-up?
The tax regimes in force in Côte d’Ivoire, of which there are 4 main ones, apply under the following conditions:
| Tax regimes | Taxpayer categorization | Sales brackets ( CFA francs) |
| Contractor’s Plan (CP) [1] |
Entrepreneur | 0-50 000 000 |
| Microenterprise scheme (RME) [2] |
Microenterprise | 50 000 001-200 000 000 |
| Simplified real income tax system (RSI) [3] |
Small business | 200 000 001-500 000 000 |
| Régime du bénéfice réel normal d’imposition (RNI) (Normal real income tax regime) [4] |
Medium-sized and large companies | From 500,000,001 |
3. When should I declare my start-up and what does the declaration entail?
The exercise of any profit-making activity in Côte d’Ivoire is subject to prior declaration of such activity.
[5]
.
When a business is declared, it is assigned a taxpayer account number (ncc).
4. How do I opt for a tax regime?
In practice, the option for a tax regime is exercised at the time of registration on the basis of forecast sales, which may or may not have to be adjusted at the end of the financial year.
5. What is the difference between the different tax regimes?
The main differences between the above-mentioned tax regimes are the fact that the “régime du réel” is subject to Value Added Tax (VAT), and that the Entrepreneur and Microentreprise regimes do not allow more than one establishment (store, stores, etc.) under the same taxpayer account.
[6]
.
6. Which deeds need to be registered, and when?
The deeds to be registered with the Ivorian tax authorities are :
- The professional lease contract
[7]
; - Company bylaws
[8]
and - Declaration of Subscription and Payment (DSV) or Notarized Declaration of Subscription and Payment (DNSV)
[9]
if applicable;
Deeds of incorporation must be registered within one month. [10]This does not apply to professional leases, which must be declared no later than ten (10) days after their date. [11] thirty (30) days after its conclusion. [12] after the said conclusion, on pain of payment of a fine.
In practice, registration is equivalent to a declaration.
7. What are the registration fees?
Incorporation deeds for new companies with share capital of 10,000,000 CFA francs or less are exempt from all registration and stamp duties. [13].
Above a share capital of 10,000,000 F CFA, company formation deeds are subject to a sliding scale of charges as follows [14]:
From 10 000 000 F CFA to five billion……………………. 0,3%
Over five billion……………………………………0,1%
The lease contract is subject to registration duties calculated as follows:
Annual rent X length of lease X 2.5% of rent [15]
8. Where are the deeds registered?
The deeds of incorporation are registered with the tax office where the start-up is located.
Those located in Abidjan can do so when registering at CEPICI’s one-stop shop. (See www.cepici.gouv.ci)
9. What are the tax obligations during operation?
All companies are required to declare (declare) and pay (pay) taxes within a legal timeframe, depending on whether they are subject to monthly or quarterly declarations, in respect of the taxes to which they are liable.
10. Does the start-up have tax privileges?
With no special tax status, start-ups have no specific incentives.
However, it can benefit from common law and specific incentives prescribed by the legal and fiscal provisions in force.
11. What are the conditions for benefiting from incentives?
In addition to registration, start-ups can benefit from standard incentives (mainly tax credits) for job creation. [16]reinvestment of profits in Côte d’Ivoire [17]and investment in research activities [18].
When considered a Small and Medium Enterprise (SME) [19]The company can benefit from tax credits for the acquisition of patents and manufacturing processes. [20]preferential rate of Taxe sur les Opérations Bancaires (TOB) on bank charges [21]tax reduction on property taxes [22] and exemption from business license tax [23].
It can also benefit from specific incentives depending on whether it meets the conditions linked to the sector of activity. [24] [25] eligible for incentives under the Ivorian investment code [26] and the law governing free trade zones [27]and the sums to be invested in the implementation phase [28] and operations [29].
12. Is there a minimum investment threshold under the investment code?
Yes, the minimum investment threshold is CFA50,000,000
[30]
and the duration of tax benefits ranges from 5 to 15 years.
[31]
.
13. When can it be used?
It can benefit from the above incentives during the set-up phase if it meets the conditions relating to the sector of activity and the investments to be made, as set out in the Investment Code.
In practice, prior approval must be obtained from CEPICI.
The benefits of other incentives are obtained during the operating phase, as is the case for free trade zones.
