An overview (French language) of the measures included in Ivory Coast's Finance Law for 2018 was published in the Official Gazette in March 2018, including a number of measures in relation to BEPS. These measures are summarized as follows:

Low Tax and Non-Cooperative Jurisdictions (Tax Havens)

In regard to the tax haven rules introduced as part of the Finance Law for 2017 ({News-2017-02-16/A/3-previous coverage}), the jurisdictions considered tax havens are expanded to include not only those that have been listed by the OECD, but also those that have been listed by the EU as non-cooperative and those that may be listed by the Ivory Coast authorities. For this purpose, a list of jurisdictions considered tax havens will be issued.

Country by Country Reporting

A Country-by-Country (CbC) reporting requirement is introduced for ultimate parent entities resident in the Ivory Coast if consolidated group turnover meets or exceeds a threshold of CFAF (XOF) 491,967,750,000 (near equivalent of EUR 750 million). The requirement follows the OECD guidelines, with a form for the CbC report to be made available on the website of the Directorate General of Taxes (www.dgi.gouv.ci). The form is to be submitted within 12 months following the close of the reporting fiscal year in both paper and electronic format, or in any other format that may be prescribed by the tax administration.

The CbC reporting requirement applies for fiscal years beginning on or after 1 January 2018. Failing to submit a CbC report by the deadline or submitting incomplete or incorrect information will result in a fine of CFAF (XOF) 5 million (~EUR 7,600).

Strengthened Rules Limiting the Deduction of Interest

The rules regarding the deduction of interest paid to related parties are expanded to include that the deduction of interest will be disallowed where:

• The loan exceeds the share capital of the paying company (with an exception for holding companies);
• The interest expense exceeds 30% of EBITDA;
• The interest rate exceeds the rate of the Central Bank of West African States (BCEAO) plus 2 percentage points (down from 3 percentage points);
• The repayment period of the loan exceeds five years; or
• The capital of the company is not fully paid up.

Extension of Tax Audits for International Intragroup Transactions

The time allowed for the tax authorities in relation to audits of international intragroup transactions is extended by six months. This provides for an extension of the total time allowed to conduct an audit to 12 months, as well as an extension of the time for the tax authority to notify taxpayers of adjustments to 16 months.