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Tourism: a profitable investment sector
The current legislative framework for tourism investments is highly attractive at levels over 1.8 billion CFA francs. Elimination or reductions in fees, tax breaks, subsidies and many other measures allow investors to guarantee their investments, both in the early stages of the projects and throughout their development. Now there is a proposal to extend these benefits to smaller investments as well. The proposals will soon be submitted.
For investments greater than 1.8 billion CFA francs (USD 3,600,000):
- Total exemption, for a period of ten years, from customs fees and import taxes as well as taxes on new equipment, tools, capital goods and transportation methods to be used for the development of tourism, excluding tour vans accommodating five to ten people including the driver.
- During the construction period for the project and during the first eight years of operation starting at the end of the construction period:
- Tax exemption for companies (moral entities)
- Exemption from income tax, industrial and marketing benefits (individual companies)
- For the following eight years:
- Exemption for the tax owed on half of the net profits (moral entities)
- Exemption from income tax, industrial and marketing benefits (individual companies)
- Losses reported during the exemption period may be allocated to offset profits during the three years after the end of the exemption period.
- Business tax exemption during the five first years of business
- Property tax exemption on new construction for ten years starting on its completion date.
For investments under 1.8 billion CFA francs (currently being revised) :
- Tax credit corresponding to 5% of the amount of the investment excluding tax for a period of five years.
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