Capital Gains Tax in Côte d'Ivoire

Capital Gains Taxation in Côte d'Ivoire

Côte d'Ivoire's capital gains tax system is designed to tax profits realized from the sale or disposal of capital assets. The tax is levied on individuals and businesses alike, ensuring that they contribute their fair share of tax on investment income.

Definition of Capital Gains

In Côte d'Ivoire, capital gains are defined as the profit realized from the sale or disposal of capital assets. These assets include:

• Real estate properties
• Stocks and securities
• Bonds and debentures
• Business assets

There is no distinction made between short-term and long-term capital gains for tax purposes.

Calculation of Taxable Capital Gains

Taxable capital gains are calculated as the difference between the selling price of the asset and its acquisition cost. The formula for calculating capital gains is as follows:

Capital Gain = Selling Price - Acquisition Cost - Expenses

Adjustments or deductions may be allowed in the calculation of the gain, including expenses related to the sale (e.g., brokerage fees, legal fees) and any improvements made to the asset during ownership.

Tax Rates

Capital gains tax in Côte d'Ivoire is generally levied at the standard income tax rates applicable to individuals or corporations, depending on the taxpayer's status and the nature of the asset disposed of. As of [current date], the standard income tax rates for individuals range from 0% to 35%, while for companies, the standard corporate income tax rate is 35%.

Legal Framework

The taxation of capital gains in Côte d'Ivoire is governed by the following legal provisions:

• Article 14 of the General Tax Code (CGI) defines capital gains as the profit realized from the sale or disposal of capital assets.
• Article 15 of the CGI outlines the methodology for calculating taxable capital gains.
• Article 16 of the CGI specifies the tax rates applicable to capital gains.

These provisions aim to regulate and influence investment decisions by ensuring that individuals and businesses pay their fair share of tax on profits realized from the sale or disposal of capital assets.

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