Republic of Côte D’ivoire

Income tax in Ivory Coast is levied on the worldwide income of residents and the Ivory Coast–sourced income of non-residents. The income tax system requires employers to withhold tax from employee salaries through a Pay As You Earn (PAYE) mechanism, based on the Impôt sur les Traitements et Salaires (ITS). Effective 1 January 2024, the ITS replaced earlier payroll taxes with a unified progressive tax, applied at marginal rates ranging from 0% to 32% depending on the employee’s monthly income. Employees are taxed on their monthly income, which includes salaries, wages, allowances and other forms of remuneration. The tax system also allows for certain deductions and exemptions, such as family-related allowances and mandatory social security contributions. Employers are responsible for withholding and remitting income tax, along with mandatory social security contributions, to the Direction Générale des Impôts (DGI), which operates under the Ministry of Economy and Finance.

Payroll taxes consist primarily of personal income tax withholdings and mandatory social security contributions shared between employers and employees. Employers must deduct and remit the ITS, through the PAYE system. In addition, social security contributions are payable to fund pensions, maternity, family allowances and work injury coverage, administered by the Caisse Nationale de Prévoyance Sociale (CNPS). Employers contribute 7.7% of gross salary toward pensions, 5.75% for family benefits (including 0.75% for maternity), and between 2% and 5% for work injury insurance depending on the sector’s risk classification, while employees contribute 6.3% of gross salary toward the pension fund. Contribution ceilings apply, with pension contributions capped at XOF 3,375,000 per month and family benefits and work injury insurance capped at XOF 75,000 per month. The ceiling for these branches is effectively linked to the SMIG (the national minimum wage). Côte d’Ivoire also operates a universal health insurance coverage system known as the Couverture Maladie Universelle (CMU). CMU contributions are generally set at approximately XOF 1,000 per person per month, although the precise allocation between employer and employee and the collection mechanisms may vary depending on current regulations as payroll practices. CMU is not part of CNPS, but CNPS serves as a collection agent on behalf of Caisse Nationale d’Assurance Maladie (CNAM).

Employers are required to file monthly payroll tax returns and remit both income tax withheld from employees and social security contributions. Declarations and payments must be submitted to the CNPS by the 15th of the following month. This includes both the employer and employee portions of contributions, which must be accurately calculated and withheld from employee salaries. Employers must also ensure timely submission of income tax withheld under the ITS to the DGI, also generally due by the 15th of the month following payment of salaries. Employers must submit an annual payroll reconciliation statement (commonly known as the “état récapitulatif annuel des salaires versés” or Form 301) to the DGI by 30 May of the following year for most employers (i.e., those not subject to statutory audit) or 30 June for entities required to have their accounts audited. Employees who receive their entire income from a single employer and have no other sources of taxable income are not required to file an individual income tax return.

Employers and payroll providers are required to maintain accurate and comprehensive payroll records to ensure compliance with tax and labour regulations. These records must include employment contracts, payslips, attendance registers, salary payment details and proof of tax and social security contributions. Employers must also ensure that all employment contracts, whether fixed-term or indefinite, comply with local labour laws, with fixed-term contracts required to be in writing and renewable for up to two years. Documentation should be retained for at least ten years and made available upon request by the tax authorities or social security institutions. Employers are responsible for the timely and accurate filing of payroll taxes and contributions, and any failure to comply may result in penalties, interest on unpaid amounts and administrative sanctions. Penalties can include fines, suspension of business operations and in severe cases, criminal charges. Regular audits are conducted by the DGI or CNPS to ensure compliance.