Cote d’Ivoire: Challenges faced in Cote d’Ivoire due to the introduction of Base Erosion and Profit Shifting (BEPS)

Cote d’Ivoire facing International Challenges related to the Changes Introduced by the Multilateral Instrument to Prevent Base Erosion and Profit Shifting (BEPS)

As part of the implementation of measures related to tax treaties to curb base erosion, profit shifting, and reduce opportunities for tax evasion by multinational companies, Cote d’Ivoire signed the multilateral convention in 2018 and deposited its instrument of ratification in September 2023.

The Multilateral Instrument came into effect for Cote d’Ivoire on January 1, 2024.

To ensure a uniform application of BEPS measures, Cote d’Ivoire has initiated the process of amending its 13 oldest bilateral tax treaties, signed with the following countries: France, Belgium, Norway, Germany, Italy, Canada, the United Kingdom of Great Britain and Northern Ireland, Switzerland, Tunisia, Morocco, Portugal, Turkey, and the WAEMU countries.

Thus, for the tax treaty between France and Cote d’Ivoire, it is now necessary to refer to the amended version of the said treaty since January 2, 2024.

The tax treaties currently under negotiation, such as those with Qatar and Saudi Arabia, are expected to be in line with the OECD model.

Moreover, the adoption of these international standards is critical in light of Cote d’Ivoire's ambitions to expand its economy and secure funding for its advancement. In fact, the nation must make sure that these foreign investments actually aid in its development rather than serving as a cover for tax evasion schemes, given its abundance of natural resources and expanding market.

Cote d’Ivoire encounters several difficulties during this oversight procedure. The first is the requirement to modify administrative procedures and provide tax-related training to officials in order to bring national tax laws into compliance with international standards. However, it is imperative that local and international businesses be made aware of the value of openness and tax compliance.

In summary, Cote d’Ivoire is working to implement the BEPS standards in order to improve its reputation as a responsible investment destination, promote equitable taxation, and fight abuses in a complex international environment where competitive pressures may lead some companies to look for ways to circumvent new regulations.

As a result, Cote d’Ivoire 's ability to meet these obstacles and take advantage of the opportunities presented by multilateral standards will determine how it handles taxes going forward.

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FACE Africa Tax & Legal