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- Basic Facts
- Statutory Labor Requirements
- Employee Income Tax In Brazil
- Employee Social Security In Brazil
- Deductible Expenses In Brazil
- Immigration In Brazil
- Value Added Tax (VAT) In Brazil
- Withholding Tax In Brazil
- Terminating Employee In Brazil
- Statutory Employee Benefits In Brazil
- Payroll In Brazil
- Business Opportunities In Brazil Section
- Why Use Global Expansion To Hire Your Employees In Brazil
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BASIC COUNTRY FACTS
Republic of Côte d'Ivoire
Yamoussoukro
- French
25.07 million
West African CFA franc
.ci
+225
West African CFA franc
STATUTORY LABOR REQUIREMENTS
Probation Period
- Probation periods are allowed as follows:
-
- hourly employees: 8 days
- monthly paid workers: 1 month
- supervisors, technicians, and similar: 2 months
- engineers, managers, high-level technicians, and similar: 3 months
Annual Leave
- After one year of employment, employees are generally entitled to 26 days of paid annual leave.
- This increases to 27 days after 5 years of service.
Public Holidays
- New Year's Day (1st January)
- Easter Monday (13th April)
- Labor Day (1st May)
- Laylat al-Qadr
- Ascension Day (21st May)
- Eid al-Fitr
- Whit Monday (1st June)
- Eid al-Adha
- Cote d'Ivoire Independence Day (7th August)
- Assumption of Mary (15th August)
- Prophet's Birthday
- All Saints' Day (1st November)
- National Peace Day (15th November)
- Christmas Day (25th December)
Maternity Leave
- Female employees are generally entitled to 14 weeks of paid maternity leave.
Paternity Leave
- There is no paternity leave
Sick Leave
- Employees are generally eligible for at least 5 days of paid sick leave.
Work Hours
- In general, Côte d’Ivoire has a 40-hour work week of 5, 8-hour days
Overtime
- There is a 23.8% premium for overtime work.
Notice Period
- The period of notice is as follows:
- 8 days, for those with up to 6 months of service in the undertaking;
- 15 days, for between 6 months and 1 year of service;
- 1 month, for between 1 and 6 years of service;
- 2 months, for between 6 and 11 years of service;
- 3 months, for between 11 and 16 years of service; and
- 4 months, for over 16 years of service.
Severance
- Employees are generally eligible for severance as follows:
- up to 5 years’ service: 30% of monthly wage
- 6-10 years’ service: 35% of monthly wage
- 10+ years’ service: 40% of monthly wage
INCOME TAX
- The Ivory Coast taxes residents on their worldwide income.
- Individuals resident in the Ivory Coast are subject to specific direct income tax, depending on the kind of revenue earned, and to general income tax (IGR).
Salary Tax (IS)
- 1.5% of 80% of gross income (GI) is levied as IS, which is withheld by employers.
National contribution (CN)
- 80% of gross income is taxed as CN at progressive rates from 1.5% to 10%, based on varying tax brackets as shown below.
|
National Contribution |
|||
|
Taxable base (XOF) |
Tax rate (%) |
Variable (XOF) |
|
|
Over |
Not over |
||
|
0 |
600,000 |
0 |
0 |
|
600,000 |
1,560,000 |
1.5 |
9,000 |
|
1,560,000 |
2,400,000 |
5 |
63,600 |
|
2,400,000 |
10 |
183,600 |
|
DEDUCTIBLE EXPENSES
Employment Expenses
- Individuals may take a standard 15% IGR deduction on their gross income for business-related expenses, such as travel fees, representation costs, and business materials.
Personal Deductions
- Although the deduction of specific non-business expenses is permitted under tax law, the practice rarely is used since the results usually are less favorable than the result from taking the standard deduction.
Standard Deduction
- A general or standard deduction of 20% is applied to gross taxable income and is the highly recommended tax choice for resident aliens.
Personal Allowances
- The number dependents a taxpayer has does not affect IS, CN, or CNPS but is reflected in the progressive IGR schedule.
- IGR allowances are based on deductions ratios called ‘parts’ that relate to the taxpayer’s family status.
- Unmarried taxpayers may deduct one part, married taxpayers may deduct two parts, and taxpayers may add one-half part for each dependent child, up to a maximum per family of five parts
- Starting in 2013, the IGR deduction for dependents is extended to both employed men and women.
- In the past, only men benefitted from the dependent deduction pertaining to marriage and children.
|
Deductible Expenses |
|
|
Employment Expenses |
|
|
Personal Deductions |
|
|
Standard Deductions |
|
|
Personal Allowances |
|
IMMIGRATION
- The Ivory Coast has a specific process for foreign nationals who wish to enter the country for various purposes. The main types of visas are as follows:
-
- Short-term visa: valid for up to three months
- Long stay visa: valid for a maximum of one year
- Work contract visa: validity depends on the duration of the work contract
- The work contract visa is the appropriate choice for foreign employees
- The first requirement for foreign nationals is to obtain a job from a company in Côte d’Ivoire.
- Having a job with an established company is essential because the employer will play a role in the application process.
- Several documents are required in addition to the application.
- These documents include:
-
- A passport with at least six months of validity and one blank page
- Four copies of the foreign worker’s employment contract
- A copy of the employee’s resume
- A police background check from the employee’s country of residence
- A medical certificate including proof of immunization against yellow fever
- Professional references, such as the employee’s diploma and any relevant certifications
- In some cases, the employee’s documents may need to be translated into French.
- An employee’s nearest consulate or embassy will be able to provide information regarding specific requirements, including the potential need for additional documents.
|
Type of Visa/Permit |
Documentation |
Validity |
Eligibility |
|
Short-term visa |
|
3 months |
|
|
Work Contract Visa |
|
1 year |
|
VALUE ADDED TAX
- VAT is a non-cumulative tax levied on the sale of goods and services at the rate of 18%.
|
VAT |
|
|
Standard Rate |
18% |
WITHHOLDING TAX
WHTs are levied as follows:
-
- Impôt sur le revenu des valeurs mobilières (IRVM): 15% on dividends and directors’ fees.
- Impôt sur le revenue des créances (IRC): 18% on interest payments, reduced to 13.5% (individuals) and 16.5% (businesses) on bank deposit interest.
- The revenue realized by individuals on Treasury Bonds is exempted from tax.
- Foreign banks are subject to 18% tax on loan interest or 9% on equipment loans with minimum three-year terms.
- Impôt sur les benefices non commerciaux (BNC): 25% of 80% of revenues on royalties, licence fees, and management and service fees paid by Ivorian companies to foreign companies (effective rate: 20% of net amount paid).
- Interest on certificates of deposit (bons de caisse): 25%.
|
WHT |
|
|
Dividends |
15% |
|
Interest |
18%/13.5%/16.5%/25% |
|
Royalties |
25% (of 80% of revenues on royalties) |
|
Fees for Management and Technical Services |
20% |
TERMINATION
A contract of employment can terminate, at the initiative of the employee, in certain circumstances, namely:
-
- the expiration of a fixed-term contract;
- mutual agreement;
- major force.
- When an employee, signed with an open-ended contract for a specified period and for the temporary replacement of a worker, has been working for at least 6 months in the company, he/she can terminate the contract unilaterally.
- The period of notice is as follows:
-
- 8 days, for those with up to 6 months of service in the undertaking;
- 15 days, for between 6 months and 1 year of service;
- 1 month, for between 1 and 6 years of service;
- 2 months, for between 6 and 11 years of service;
- 3 months, for between 11 and 16 years of service; and
- 4 months, for over 16 years of service.
- Employees are generally eligible for severance as follows:
-
- up to 5 years’ service: 30% of monthly wage
- 6-10 years’ service: 35% of monthly wage
- 10+ years’ service: 40% of monthly wage
STATUTORY BENEFITS
- These are mandatory benefits as postulated by law
- These include probationary period, annual leave, public holidays, sick leave, maternity leave, overtime pay, notice period, and severance pay
- Statutory benefits also include social security benefits
|
Statutory Benefits |
|
Probationary Period |
|
Annual Leave |
|
Public Holidays |
|
Maternity Leave |
|
Sick Leave |
|
Overtime Pay |
|
Notice Period |
|
Severance Pay |
|
Social Security Benefits |
PAYMENTS AND INVOICING
- The taxable period in the Ivory Coast is the calendar year.
- Employers must calculate and withhold taxes due by employees, and they must file monthly IS returns for both employee tax and the employer’s payroll tax.
- Adjustment declarations are filed annually by 30 June for companies’ subject to audit requirements and 30 May for the others.
- Employees are not required to file and pay the payroll tax when their employer is not in the country.
- Filing of IGR single return for individuals is suspended until an effective reform to modernize this tax.
- A husband and wife are taxed separately.
- The husband’s salary is taxed with regard to the relevant deductions for dependents (marriage and children).
- Employed women are also taxed with regard to the same deductions for dependents (marriage and children) as their husbands'. Husband and wife, however, may also file jointly.
