From the end of May 2001, as some order was restored after the coup attempt in January, the government began instituting and planning reforms in tax structure and tax administration under the guidance of the IMF and the World Bank. The government wrote off tax arrears from prior to 1992 amounting to about €460 million. Most domestic state revenues come from indirect taxes on imports and exports, and on consumer products, and from business taxes. In 2002 the minimum 5% customs duty on all imports was extended.
The Côte d'Ivoire divides income into five categories according to its source-industrial and commercial profits, salaries and wages, marketable securities, land, and non-commercial profits. Each type is subject to its own specific tax. Individuals are taxed on their total income from all categories under the progressive General Income Tax (IGR), which takes into account the number and type of persons in the taxpayer's household.
Companies pay a tax for Industrial and Commercial Benefits (BIC) at a rate of 35% of profits. Individually-owned companies pay 25%. The tax on capital gains is included in the corporate tax. The New Code for Investments of 1995 offers programs of tax holidays, exemptions and reductions as incentives for foreign investment. Subsidiaries of foreign corporations are subject to withholding tax of 12% (18% if the profit is exempt from corporate tax). The withholding tax on income from royalties is 10% and from interest, 15%. Dividends to non-residents are subject to 18% withholding, but this may be reduced to 10% or 12%. All withholding taxes may be reduced or eliminated by the terms of bilateral double-taxation prevention agreements. The Côte d'Ivoire has double-tax treaties with about 20 countries, the United States not included among them. There is a real estate tax and a tax on capital gains from securities. Otherwise capital and capital gains are not taxed.
The main indirect tax is the value-added tax (VAT), which, as of 2 July 2001, was set at the unified rate of 20% with the abolition of the reduced rate of 11%. Supplies to ships and aircraft are exempt from VAT. Also levied is a tax on service provided (TSP) of 10% on certain financial and other services, a business franchise tax, a petroleum products tax, a tax on automobiles (50%-100%).