http://www.pwc.com/globalmobility Global Mobility Services: Taxation of International Assignees - Côte d Ivoire Taxation issues & related matters for employers & employees 2015
Last updated: June 2016 This document was not intended or written to be used, and it cannot be used for the purpose of avoiding tax penalties that may be imposed on the taxpayer.
Country Côte d Ivoire Introduction: 4 Step 1: Income tax summary 5 Step 2: Rates of tax 11 Appendix A: Contacts and offices 12 Additional Country Folios can be located at the following website: Global Mobility Country Guides. Global Mobility Country Guide (Folio) 3
Introduction: PwC is the world's leading provider of professional services. The People and Organisation group works together with its clients to find solutions for the challenges they encounter when transferring people from one country to another. This summary is intended to inform foreign nationals and their employers about high level tax, social security and immigration issues. This guide is not exhaustive and cannot be regarded as a substitute for professional advice addressing individual circumstances. Nevertheless, answers will be found to most of the questions raised by an expatriate or his/her employer. More detailed advice should be sought before any specific decisions are made about these issues. More information can be obtained from our offices specializing in People and Organisation, Global Mobility. 4 People and Organisation
Step 1: Income tax summary Question Answer Basic information 1 The date of the tax year end The Ivory Coast tax year runs from 1 January to 31 December. 2 Types of income that are liable to tax Incomes liable to tax are employment income. They include all employment benefits provided by the Employer whether in cash or in kind in addition to salary. 3 How are residents and non residents treated differently for tax purposes? 4 Do spouses file tax returns jointly or as individuals? 5 Method of determining domestic tax residence In the absence of a DTA, a non resident employee will be taxable in Ivory Coast like a resident employee without considering the duration of stay of the employee in Ivory Coast (from day one). Conversely, in presence of a DTA, the remuneration of the employee is not taxable in Ivory Coast if the said employee spends in Ivory Coast a period, or periods, less than 183 days during a fiscal year. However, without exceeding the period of 183 days, the employee will be taxable in Ivory Coast if his salary is: paid by (or on behalf of) an employer located in Ivory Coast; recharged to an employer located in Ivory Coast. Married taxpayers file tax returns as individuals. An individual is deemed to have his tax residence in Côte d Ivoire if: He has a home as an owner or tenant (more than one year lease contract) in Côte d Ivoire. He has no home in Côte d Ivoire, but Côte d Ivoire is the place of his principal stay. Subject to international conventions, the tax is payable by any person having his residence in Côte d Ivoire. Global Mobility Country Guide (Folio) 5
Question 6 Provide some details of the exchange controls in this jurisdiction Answer Foreign financial relationships of entities operating in Côte d Ivoire are governed by the Regulation n R09/2010/CM/UEMOA applicable to all member states of West African Economic and Monetary Union. This regulation authorize in general free payment (or transfer) abroad of ( ) expatriate s personnel income, foreign insurance premium, foreign social security contribution, deriving from an employment contract performed in Ivory Coast. Tax rates, allowances and credits 7 Income tax rate The personal income tax includes 3 separate taxes: General Income Tax National Contribution Salary Tax General Income Tax General income tax ("IGR") is calculated using a "taxable amount" divided by the number of dependents and is subject to marginal tax rates that vary up to 60% (See the below table). The "taxable amount" is calculated by deducting the following from the individual's gross income: A salary tax at a rate of 1.5% (on 20% of the individual's gross income); less A national contribution which rates range from 0% to 10% (on 80% of gross income); less A special 15% deduction. Salary Tax Salary tax is calculated using the rate of 1.5% of the taxable revenue after a deduction of 20%. 6 6 People and OrganisationHuman Resources Services
Question Answer National Contributions National Contributions rates vary according to the range of salary of the employee (See the below table N 1). Taxable Revenue in CFAF Rate Less than 600,000 0% Between 600,000 & 1,560,000 1.5% Between 1,560,000& 2,400,000 5% More than 2,400,000 10% 8 Income tax allowance amount N/A 9 Capital gains tax allowance amount Resident employees are taxed on their gains other than employment revenues. 10 Rate of capital gains tax In calculating tax on income other than wages salaries, the rates applicable to taxable annual net income are set in a progressive way, for every income determined as follows: 1000 & 2,200 000 2% 2,200 001 & 3,600 000 10% 3,600 001 & 5,200 000 15% 5,200 001 & 7,200 000 20% 7,200 001 & 9600 000 24% 9,600 001 & 12600 000 26% 12,600 000 & 20 000 000 29% 20 000 001 & 30 000 000 32% 30 0000 001 & 40 000 000 34% 40 000 0001 & 50 000 000 35% Up to 50 000 001 36% 11 Rate of tax on interest The standard rate is 18%. 12 Rate of tax on dividends The standard rate is 15%. Global Mobility Country Guide (Folio) 7
Question Answer 13 Rate of employer social security The rate of the employer social security are the following: Family allowance at 5,75% with a monthly ceiling up to 70 000 FCFA; Work injuries from 2% up to 5% with a monthly ceiling 70 000 FCFA; Retirement 7.7% with a ceiling 1,647 315 FCFA. 14 Rate of employee social security The employee contributes only to his retirement at the rate of 6.3%. 15 What types of income are exempt from tax/deductible from taxable income? Employer s social security contributions Employer s social security contributions paid to complementary retirement or contingency constitute a taxable cash benefit. This benefit is exempt from tax up to the following limits: XOF 300,000 per month and 10% of the gross taxable remuneration of the employee. As a consequence, the employer s contributions that exceed either of the limits are taxable. Compulsory social security payments paid in the Ivory Coast to the CNPS are not affected by the limit. Transport premiums Transport premiums are exempt up to XOF 25,000 per month. Expenses covered by this indemnity are the general expenses incurred by the employee from his home to his place of work. Professional indemnities Indemnities to cover costs inherent in the job or work are exempt up to a limit of 10% of gross taxable remuneration of the employee including the indemnity itself. These indemnities may correspond only to displacements linked to the exercise of the job, or corresponding to representation charges. Justification of the use of such indemnities may be required. 8 8 People and OrganisationHuman Resources Services
Question Answer Before arriving in the country 16 What must an individual do in order to be able to work in the country ie obtain a work permit, intra company transfer visa, critical skills visa 17 What conditions must be met to be eligible to have a work permit The hiring of any non-ivorian employee by an entity located in Côte d Ivoire is subject to the application for a work permit, which is obtained through an application made at the Youth Employment Agency, it can also be done once the assignee is in the country. The visa is granted upon the filing of an application form and the provision of the following documents: An official form available to the Youth Employment Agency filed and signed by both employer and employee; A police record of the employee; A curriculum vitae of the employee; A medical examination certificate of the employee; A pay slip of the employee; A certificate of employment and a copy of the employee's degree. The administrative fees for the employment contract visa procedure are as follows: Limited term contracts: The cost is half month salary for African employees and one month salary for non-african employees. Unlimited term contracts: the cost is one and half month salary for non-african employees and ¾ salary (75% salary) for African employees. The employment contract visa procedure generally lasts about two weeks. What is the maximum period a work permit will be issued for The maximum period a work permit will be issued for is one year. 19 Can a work permit be renewed The work permit should be renewed each year at its anniversary date. 20 What would be the immigration requirements for a short term business visitor 21 At what point/type of activity would trigger a tax liability in the country The visitor should request a business entry visa at the Ivory Coast embassy in his home country. Please see our answer in point n 3 above. Global Mobility Country Guide (Folio) 9
Question During the assignment 22 Does an individual need to register as a taxpayer 23 Timeline and process for registering as a taxpayer Answer No. Employee personal income taxes are withheld and paid by the employer. N/A 24 Are provisional taxes required? N/A 25 If yes, on which dates? N/A 26 If yes, what are the penalties for non compliance? 27 Important dates to remember during the tax year At the end of the tax year 28 Tax return filing deadline N/A. Tax return filing is the obligation of the employer. The personal income taxes are due on the 10 th of the month following the salary payment. 29 Penalty for late filing N/A from employee perspective. 30 Tax payment deadline N/A from employee perspective. 31 Penalty for late payment N/A from employee perspective. At the end of an assignment 32 The process and actions required before leaving the country Other comments N/A N/A The assignee leaving Côte d Ivoire must report his departure the tax authority in order to be issued a tax clearance certificate. None 10 10 People and OrganisationHuman Resources Services
Step 2: Rates of tax Personal income tax rates for 2015 (specify currency) Income Received (CFAF) Tax rate 0 to 300,000 0% 300,001 to 525,000 10% 526,000 to 900,000 15% 901,000 to 1,350,000 20% 1,351,000 to 2,250,000 25% 2,251,000 to 3,750,000 35% 3, 751,000 to 7, 500,000 45% More than 7, 500,000 60% Global Mobility Country Guide (Folio) 11
Appendix: Contacts and offices Contacts Dominique Taty Partner Tel: +225 20 31 54 67 Email: d.taty@ci.pwc.com 12 People and Organisation
2016 PricewaterhouseCoopers LLP. All rights reserved. "PricewaterhouseCoopers" refers to PricewaterhouseCoopers LLP (a Delaware limited liability partnership) or, as the context requires, the PricewaterhouseCoopers global network or other member firms of the network, each of which is a separate and independent legal entity. PricewaterhouseCoopers and PwC may also refer to one or more member firms of the network of member firms of PricewaterhouseCoopers International Limited (PwCIL), each of which is a separate legal entity. PricewaterhouseCoopers does not act as agent of PwCIL or any other member firm nor can it control the exercise of another member firm s professional judgement or bind another firm or PwCIL in any way.