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6.1. Main Rules Governing the Determination of Taxable Income

Taxable income is determined in accordance with OHADA accounting principles or, where applicable, the banking accounting regulations or the Code of the Inter-African Insurance Markets Conference (CIMA), after accounting for differing tax rules. It includes all profits, with the exception of specified items that are not considered income for tax purposes. Net taxable income is the sum of profit (or loss) resulting from financial statements plus items added to taxable income pursuant to tax rules, less deductions allowed under tax rules, less losses carried forward, less losses carried forward and pertaining to depreciation booked in loss years. Foreign exchange gains and losses, including those on debts owed or granted, are recognized as income or loss at year end according to the latest exchange rate.

A number of income items are taxed only for a portion of their amount, while qualifying capital gains are eligible for separate taxation at a reduced rate or may be eligible for an exemption (see Sec. 5.1.).

In general, all expenses necessary for producing income are deductible, subject to general and specific conditions. The general conditions are that for expenses to be deductible for tax purposes, they must be:

  • Related to the activity;
  • Incurred in the interest of the business;
  • Supported by accounting documents;
  • Used by enterprises engaged in activities in Ivory Coast;
  • Incurred during the relevant tax year; and
  • Resulting in a reduction of net assets (thus excluding expenses which must be capitalized)

Subject to few exceptions, payments in cash in excess of CFA 250,000 are not deductible. See Sec. 6.5. in relation to the non-deductibility or restrictions on the deduction of specific expenses, in particular when paid to non-residents.

COVID-19 Emergency Measures

In response to the COVID-19 pandemic, all charges and expenses incurred in the fight against the COVID-19 are tax deductible.