Ivory Coast: The State imposes a tax of 0.5% on the transfer of money by mobile

Ivory Coast: The State imposes a tax of 0.5% on the transfer of money by mobile

The transfer of money by mobile costs significantly more in Ivory Coast since one week. This increase in costs results from the new 0.5% tax imposed by the State. It is contained in the tax schedule of the law n ° 2017-870 of December 27th, 2017, budget of the State for the year 2018. According to the tax schedule, this tax is perceived under the same conditions and under the same procedures, sanctions and security as value added tax.

It is the payer for the transfer of money that is responsible for paying the tax. In addition, it is the customer who performs the operation of sending money by mobile who pays the bill. For example, for 1,000 FCfa sent, it is 5 FCfa of tax that will have to be paid in addition to the shipping costs levied by the telecom operators for the service rendered. This new tax provision, aims to increase the revenue of the state.

In the 2018 tax schedule, however, the government indicates that the mobile money transfer tax “still falls short of the true potential, because the tax administration is having difficulty in understanding the actual volume of transfers of money . money made especially by mobile money “.

Speaker at the Currency Forum and Electronic Payment, held in Casablanca, Morocco from 22 to 23 July 2017, René Tano, Head of Cash Management at the International Bank for Trade and Industry of Côte d’Ivoire (BICICI) , estimated at 17 billion FCfa, the daily volume of transactions by Mobile Money in the country. With the new tax, this represents an income of 85 million CFA that the state will receive on a daily basis.

Source: Agence Ecofin