The amendment, outlined in the 2025 Tax Annex, now subjects all advertising messages resulting from sponsorship to a 3% tax. This includes any expenses incurred by sponsors in exchange for advertising exposure, such as donations or other forms of compensation.
Ms. Annick Kopoin Soko, a tax expert, explained that while the sponsored party typically receives the donation, it is ultimately the sponsor who is responsible for paying the advertising tax. The tax is calculated based on the total expenses incurred for the sponsored activity.
This expansion of the advertising tax base is expected to generate additional revenue for the Ivorian government, which is facing increased economic pressures due to the global economic challenges stemming from the Covid-19 pandemic, the war in Ukraine, and the resulting energy and food crises.
Despite these challenges, the Ivorian government aims to maintain an economic growth rate of over 7% in 2025, as outlined in the 2021-2025 National Development Plan.
AP/Sf/fss/abj/APA