Chapitre 1
GENERAL PROVISIONS
Article 1
The present law states the accounts, financial and tax system applicable to partnership CONTRACTS and contracting partners’ services in accordance with law n° 2006/012 of the 29th December 2006 creating partnership CONTRACTS.
Article 2
(1) The accounts, financial and tax system provided by the present law is known as stable and specific.
(2) The stability refers to fixity of tax, financial, and accounts clauses of contracts signed in accordance with the law.
(3) Specificity is the waiver character of the tax financial, and accounts system applicable to partnership
CONTRACTS.
Chapitre II
TAX SYSTEM
Article 3
The tax system applicable to partnership CONTRACTS is specific to the conception, realisation and operation phases of an investment project.
Section I
CONCEPTION AND REALISATION PHASES
Article 4
At the conception and realisation, tax profits are at follows:
- Reimbursement by the contractor’s budget of the VAT related to local imports and purchase of materials
- Free registration conventions and acts between the contracting partner and the PUBLIC CONTRACTOR in the realisation of investment projects.
Article 5
(1) Imported equipment and materials destined to investment projects in partnership agreement benefit from the consumption and reimbursement of taxes and duties by the contractor’s budget;
(2) The aforementioned taxes and duties comprise, apart from the Common External Tariff applicable to projects, the VAT tax likely to be supported at Imports, Communal Special Surtax, Integration Community Tax, Integration Community Contribution, OHADA tax, but royalties for service achieved.
(3) The aforementioned equipment and materials in paragraph 1 must compulsory be accompanied with the following documents: bill of lading or waybills, bills, freight and import declaration bearing the name of the owner of the contract with the contract number enclosed.
Article 6
Materials and equipment provisionally imported, destined to realise investment projects, benefit from Special Temporary Admission system with reimbursement by the contractor’s budget, of taxes and duties corresponding to the stay of the materials in the National Territory.
Article 7
(1) Materials and equipment quoted in Section 5 and 6 above can, during the customs clearance operations, benefit from direct clearance procedure as provided by the laws in force
(2) Direct clearance application comprises, apart fro imports document quoted above in Section 5, the specific declaration of valuable goods and the consignment monitoring electronic declaration.
Article 8
(1) Imported equipment and materials destined to investment projects in partnership agreement can be inspection-free before loading, at the request of the contractor.
(2) The inspection-free application is addressed to the customs officer, who is bound to process it within five days, if not it shall found accepted.
Article 9
Materials and equipment processed in accordance with advantages provided by Section 7 and 8 above shall be subject to an intrusive control by the Public Authorities.
Section II
OPERATION PHASE
Article 10
At the operation phase, tax advantages are as follows:
- The PUBLIC CONTRACTOR’s contracting partner benefit from a five-point discount in PUBLIC CONTRACTOR on the corporate tax during the first five years of the exploitation.
- Conventions and acts signed by the contracting partner are recorded free of charge during the first five years of the exploitation.
Article 11
Tax deficit from a cycle can be successively reported till the fifth one which follows its realisation.
Chapitre II
FINANCIAL SYSTEM
Section I
FINANCING
Article 12
- Full financing by a private partner;
- Joint financing State-private partner
- Financing by a third party organism;
- Joint financing State-decentralised local communities
- Joint financing among decentralised local communities
- Joint financing State-decentralised local communities-private partner
- Joint financing decentralised local communitiesprivate partner
Section II
PARTICULAR FINANCIAL PROVISIONS
Article 13
Management, operation and remuneration financial clauses of investments are jointly fixed
Article 14
The total cost of investment represents the only component likely to be subject to debt transfer.
Article 15
The investment cost mentioned in the contract shall take into account the overall expenditures incurred by the contracting parties.
Article 16
The contract session is subject to the authorisation of the higher authority who managed partnership agreement after a notification of motivation from the public contractor.
Article 17
Commitments made by the public contractor in the partnership agreement are supported by his budget.
Chapitre IV
ACCOUNTING SYSTEM
Article 18
(1) the contracting partner can deduct from his taxable profits, depreciations calculated according to a preferential constant system in account of the depreciable goods used in the realisation of the contract;
(2) the depreciation rate provided in paragraph 1 above is equal to a 25% increased normal rate;
(3) the starting point of computing the depreciation deadline provided in paragraph 1 is the starting date the effective operation
Article 19
The depreciation system which can be deferred in periods of deficit is also applicable accelerated depreciations quoted in Section 18 above.
Chapitre V
FINAL AND VARIOUS PROVISIONS
Article 20
Subject to provisions of the present la the public contractor and his contracting partner are submitted to other accounts, financial, tax system obligations provided by the regulations in force.
Article 21
The public contractor’s contracting partner cannot cumulatively benefit from advantages of the general taxation system or other attached texts and those provided in the present law.
Article 22
The application clauses of the present law are, if need be, fixed by regulatory channel.
Article 23
The present decree shall be recorded and published in accordance with emergency procedure, then enclosed in the official Gazette in French and in English.