EY-Global-oil-and-gas-tax-guide-2014

Côte d’Ivoire
155
Registration fees
Upon company registration, holders become taxable entities and must register
with the tax authorities in order to obtain a tax identification number.
The registration fees for the creation of a company are:
• Up to US$10 million share capital — 0.3%
• More than US$10 million share capital — 0.1%
I. Petroleum services contractor tax regime
Petroleum services contractors are eligible to the Simplified Tax Regime if all of
the following conditions are met:
• The contractor is a foreign entity
• The contractor signed a service contract with an E&P company or a direct
contractor of an E&P company,
• The contractor applies expensive plant and machinery, i.e., the drilling rig
• The contractor is registered in the Commercial Register of Côte d’Ivoire as
an agency or branch
• The contractor files a request to the Head of Tax Administration within three
months after an entity is registered in Côte d’Ivoire.
The taxpayer must opt to be taxed under this regime if it wishes to operate
under the Simplified Tax Regime; this election is definitive. And the agreement
of the Director General of Taxes is required before the regime can be applied.
The Simplified Tax Regime (STR) covers corporate income tax, distribution tax,
tax on insurance premiums and payroll taxes (as described in the table below).
A single STR rate is applied to turnover realized by the subcontractor in Côte
d’Ivoire.
Taxes Taxable basis Rate
Effective rate (on
gross turnover)
Corporate income tax 10% of turnover 25% 2.5%
Withholding tax on
dividends
Payroll taxes
50% of profit
(i.e., 5% of
turnover)
15% 0.75%
– for expatriate employees 8% of turnover 12% 0.96%
– for local employees 2% of turnover 2.8% 0.056%
Tax on salaries (due by
employees)
– Salary tax 8% of turnover 1.5% 0.12%
– National contribution
tax
10% of turnover 5% 0.5%
– General income tax 8% of turnover 10% 0.8%
Tax on insurance contracts 10% of turnover 0.1% 0.1%
Overall tax rate 5.786%
J. Other
Other taxes and compliance issues
Holders, in their capacity as Côte d’Ivoire companies, must submit their
financial statements and income results of the same period to the tax
authorities each year.