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6.4. Reserves and Provisions

Reserves and provisions may be booked for contingencies relating to the same tax year which are precisely identified and adequately booked. In particular, the law provides for the following reserves and provisions:

  • Provisions for doubtful debt booked by banks and financial institutions if in conformity with the prudential rules of the Central  Bank of western African States (BCEAO);
  • Technical provisions booked by insurance companies in conformity with the rules established by the Inter-African Insurance Markets Conference (CIMA); and
  • Subject to various conditions, provisions booked for price fluctuations by taxpayers whose main activity consists of the transformation of commodities either acquired on foreign markets, or acquired locally if the price is strongly linked to variations in international prices.