CÔTE D’IVOIRE Law and Practice Contributed by: Innocent Kouakou, Assemian Kouakou, Francky Lukanda and Lonzo Colombe, Ofori Conseils Africa LLP
9.12 Digital Economy Businesses Côte d’Ivoire has introduced targeted reforms to tax foreign digital activities, notably by extending VAT to non-resident platforms, pending the implementation of BEPS Pillar One. Article 7 of the 2022 Finance Annex (Law No 2021- 899) subjects online services and digital platform commissions (e-commerce, marketplaces, apps) sup - plied by non-resident entities without a local perma - nent establishment to VAT at 18%. These operators must register, file returns and make payments through the e-impots.gouv.ci platform. Since January 2026, Côte d’Ivoire has also introduced a specific tax regime for non-resident e-commerce platforms, broadening the tax base to cover cross- border digital transactions. The tax applies where a platform generates at least XOF 50 million in annual turnover from remote sales to Ivorian consumers. It is levied at 30% on deemed profits calculated at 10% of the turnover derived from such services. 9.13 Approach to Digital Services Taxation Côte d’Ivoire has strengthened the taxation of digital businesses by introducing a specific tax on the prof - its of non-resident e-commerce platforms operating without a permanent establishment in the country. The tax applies when a platform generates at least XOF50 million in annual turnover from remote sales to Ivorian consumers. It is levied at 30% on deemed profits calculated at 10% of the turnover derived from such services. 9.14 Offshore IP Provisions In Côte d’Ivoire, royalties paid for offshore intangible assets are subject to a 20% withholding tax, reduced to 10–15% under applicable tax treaties, and must comply with the arm’s length principle for related-par - ty transactions. There is no direct taxation of the for - eign IP owner; taxation focuses on the Ivorian source through withholding. In addition, the use of offshore IP is subject to a 2.5% registration duty calculated on the remuneration stipulated in the contract.
IP royalties remains conventional but is increasingly subject to anti-abuse provisions introduced under the BEPS MLI. Royalties relating to IP (patents, trade marks, soft - ware) are subject to a 20% withholding tax, which may be reduced to 10–15% under applicable tax treaties. Where the income is sourced in Côte d’Ivoire, it is fully taxable locally. Although there is no specific “nexus” regime as contemplated under BEPS Action 5, intra- group transactions involving IP must comply with the arm’s length principle. 9.11 Country-by-Country Reporting and Transparency Provisions In Côte d’Ivoire, transparency and CbCR obligations under BEPS Action 13 have applied to multinational enterprise (MNE) groups since 2018, pursuant to Arti - cles 36 bis and 36 ter of the CGI and ECOWAS Direc - tive C/DIR.6/07/23. As part of the global BEPS project, in which the Ivo - rian Tax Administration has participated since 2016, several minimum standards were issued to help coun - tries effectively combat BEPS. One of these standards concerns enhanced transfer pricing documentation for companies engaging in transactions with related parties located abroad. In Côte d’Ivoire, groups with consolidated annual turnover exceeding XOF250 billion must file an annual country-by-country report detailing the global alloca - tion of profits, taxes and economic activities within 12 months. Failure to file is subject to a fine of XOF5 million. In addition, companies under the DGE or DME must, upon audit, provide standardised documentation: a master file outlining the group’s global strategy and a local file demonstrating compliance with the arm’s length principle.
94 CHAMBERS.COM
Powered by FlippingBook