Côte d’Ivoire, also known as the Ivory Coast, is located in West Africa and borders the Atlantic Ocean. The country’s economy is growing and has a large population as well as natural resources like crude oil, palm oil, timber, and cocoa. It’s an attractive location for companies looking to expand to Africa, but opening a location in Côte d’Ivoire isn’t without its challenges.
You need to set up your Côte d’Ivoire payroll, examine your payroll options, and hire employees, all while running your company.
Taxation rules in Côte d’Ivoire
Employees operate under a pay-as-you-earn (PAYE) system, and employers are responsible for deducting taxes from pay. Companies should calculate income tax, public health insurance, social security, and other deductions straight from employees’ paycheck and send them a net wage.
Employers are also responsible for contributing 25% of taxable profits as corporate income tax. If your company is in the telecommunication, information technology, or communication sectors, the corporate income tax rate increases to 30%. You also have to pay an 18% VAT tax and ensure employees are contributing the right amount of their gross income to stay compliant.
Côte d’Ivoire payroll options for companies
Companies have 3 main Côte d’Ivoire payroll options:
- Internal: Companies may opt to set up an internal payroll, but keep in mind that you’ll need to set up a subsidiary, hire a full HR team, and keep a close eye on compliance to ensure smooth operations.
- Côte d’Ivoire payroll processing company: If outsourcing is easier, you can work with a local Ivory Coast payroll processing company. However, your company will still be liable for any compliance issues.
- G-P: The easiest way to run payroll in Côte d’Ivoire and stay compliant is partnering with an Employer of Record (EOR) like G-P. With us, you can rest assured that all employees will be paid on time, freeing you to focus on other important aspects of your business.
How to set up a payroll in Côte d’Ivoire
Before you set up your Côte d’Ivoire payroll, you have to establish a subsidiary in the country. However, the incorporation process can take up to a few months and will likely delay the hiring process and payroll setup timeline.
But can G-P eliminate this step. With us, companies can start working and hiring in Côte d’Ivoire in a fraction of the time, without setting up an entity.
Entitlement/termination terms
Terminating an employment contract can often prove difficult in most countries. That’s why we recommend including entitlement and termination terms in all your employment contracts before examining your Côte d’Ivoire payroll options.
Employers must notify employees of termination in writing, and employees are generally eligible for severance depending on how long they’ve worked for the company.
Streamline global payroll management with G-P.
G-P streamlines each step of the payroll management process with our market-leading Global Growth Platform™. Pay your team with confidence anywhere in the world in 150 currencies with our 99% on-time automated payroll system — all with just a few clicks. Our products also integrate with leading HCM solutions, syncing employee payroll data across platforms automatically to create one reliable, convenient source of truth for HR teams.
Contact us to learn more about how we can support you.