The Ivory Coast Finance Law for 2017 was adopted the end of December 2016 and entered into force in January 2017. Main measures of the law are summarized as follows.
In order to promote national ownership, non-resident companies will receive the following benefits if at least 10% of their shares in an Ivory Coast subsidiary are transferred to a resident individual or company:
New transfer pricing documentation requirements are introduced that include submission of documentation with the annual financial statements that provide:
If the documentation is not submitted, the deduction of payments related to the transactions carried out with related parties will be disallowed. Incomplete or inaccurate documentation may also result in the disallowance of a deduction.
Low (or no) tax jurisdictions and non-cooperative jurisdictions are defined as those that are blacklisted by the OECD and do not have an information exchange agreement with the Ivory Coast. Withholding tax on dividends paid to such jurisdictions is increased to 25% (standard rate is 15%). In addition transactions with such jurisdictions are subject to the transfer pricing rules and expense deduction limitations may apply whether the relevant party is related or not.
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