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. Globalization Partners offers Côte d’Ivoire payroll outsourcing services to help take some of the stress of expansion off your plate. We can add your employees to our locally compliant payroll and act as the Employer of Record so that you can run your company without worrying about compliance.
Taxation Rules in Côte d’Ivoire
Your employees operate under a Pay As You Earn (PAYE) system for which they pay throughout the year, and you are responsible for deducting taxes from pay. You should calculate income tax, public health insurance, social security, and other deductions straight from an employee’s 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 your employees are contributing the right amount of their gross income to stay compliant.
Côte d’Ivoire Payroll Options for Companies
Your company has four main Côte d’Ivoire payroll options:
- Remote: Many companies may already run payroll through their parent company. You can pay your subsidiary’s employees remotely if you add them to this payroll.
- Internal: You can also choose to set up your own payroll as long as you have a large subsidiary with a full HR staff. However, you’ll need an expert who understands labor laws to operate your own payroll.
- Côte d’Ivoire payroll processing company: If outsourcing is easier, you can work with a local Ivory Coast payroll processing company. However, you’ll still be the one held compliant for all regulations.
- Globalization Partners: Globalization Partners is another Côte d’Ivoire payroll outsourcing option. Unlike a local payroll processing company, we can manage your payroll and shoulder all compliance, offering you complete peace of mind.
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 prevent you from hiring employees, adding them to your payroll, and giving out compensation and benefits. Globalization Partners eliminates this step-through Côte d’Ivoire payroll outsourcing. We have subsidiaries all over the world, including the Ivory Coast, and we can use those subsidiaries to help you start working faster.
Terminating an employment contract can often prove difficult in other countries. 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.
Payroll Processing Company in Côte d’Ivoire
Globalization Partners has the team you need to help your expansion succeed. Contact us today to learn more about Côte d’Ivoire payroll outsourcing.
THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s). G-P does not provide legal or tax advice. The information is general and not tailored to a specific company or workforce and does not reflect G-P’s product delivery in any given jurisdiction. G-P makes no representations or warranties concerning the accuracy, completeness, or timeliness of this information and shall have no liability arising out of or in connection with it, including any loss caused by use of, or reliance on, the information.