From 20% today, Côte d'Ivoire aims to transform 50% of its raw materials by 2030. The new tax annex, presented this Monday, January 6 in Abidjan by the Cabinet Deloitte, provides for important measures in this effect.
In force since January 2, the new finance law contains support measures for the processing of agricultural products. Thus, a favorable tax system has been instituted for the benefit of natural or legal persons whose activity consists of the transformation of agricultural products into finished products.
The latter benefit from an exemption from property tax for the benefit of buildings, installations or buildings belonging to agricultural enterprises and allocated to their activities of transformation of agricultural products into finished products, for a period of 5 years.
Agricultural product processing companies are exempt from the license for 5 years following the date of completion of the investment program. In addition to an exemption from the tax on banking transactions, on loans granted for the installation of processing units for agricultural products into finished products.
“These targeted incentive measures relate to sectors and activities with high added value and therefore high tax yield in the medium term,” says Marc Wabi, Managing Director of Deloitte Côte d'Ivoire. In addition to agriculture, pharmacy, cinema, research and technological innovation also receive a boost from the state for greater competitiveness.
For the pharmaceutical industry, the 2020 tax annex grants exemption from VAT on the acquisition of equipment, materials and tools with their spare parts, and inputs necessary for the manufacture of medicines as well as packaging used for packaging manufactured drugs, including customs duties.
The cinematographic sector can welcome the introduction of a tax on the distribution of videos on demand, payable by any natural or legal person who, on a professional basis, makes available to the public in return for the payment of a sum money, videos.
This tax, levied at the rate of 3% on the amount excluding tax of the price paid by the customer in return for the provision of the audiovisual work by means of an electronic communication process, will be allocated to the Office National du Cinéma and the Support Fund for the Film Industry, up to 40% and 60% respectively.
The State thus intends to contribute to the development of the film industry and restore fairness between video-on-demand services and traditional television services.
Pending the launch of the Fund for Science, Technology, and Innovation, FONSTI, a tax regime is planned in favor of companies engaged in research, development and technological innovation.
A sector called upon to play its part in the development of the country thanks to numerous measures, in particular deductibility from tax on profits, donations and gifts granted to scientific research organizations, private companies engaged in research, development and innovation, to national inventors and innovators.
And the agreement of a tax credit of 50% of the sums invested, chargeable to income tax, for the benefit of private companies of which at least 15% of the expenses are exclusively allocated to research, development and research activities. 'innovation
In total, 29 articles contained in the new tax schedule respond to the consistency of Ivorian tax policy. A tax policy intended to strengthen state support for the private sector and to maintain the attractiveness of Côte d'Ivoire.