WHAT IS A FISC STARTUP?

Several definitions are given to the word start-up. The one given by Wikipedia is not very different from that of the FISC.

  • According to the WIKIPEDIA encyclopedia, a start-up in English: young shoot or start-up company in French is a newly created innovative company, generally looking for significant investment funds, with a very strong potential for growth. economic and financial speculation on its future value. Its phase of research and development of an innovative product, idea testing, technology validation, or economic model is more or less long, before its commercial phase, and its risk of failure is much higher than that of others. companies, by its innovative character, its small size and its lack of visibility. Start-ups are generally established in business incubators, business incubators or technology parks, or in hacker houses, in innovative markets. Their number grew in particular from the 1990s, with the new economy (or digital economy, at the origin of the Internet bubble). They can be financed by various forms of venture capital, business angels, innovation mutual funds, etc.
  • The FISC defines a start-up as a newly created innovative company which is credited with a strong potential for economic growth. These are young structures looking for a business model / industrializable, profitable and allowing growth. The research phase is therefore an important step in the development of the start-up. It is generally carried out in business incubators or incubation centers. It is on this condition that a company can benefit from the tax advantages linked to the tax regime for the promotion of the digital economy. 

• As a reminder, article 125 ter of the finance law for fiscal year 2021 provides that innovative start-ups in the field of information and communication technologies benefit from the following tax advantages:

  • During the incubation phase which must not exceed five (05) years:
    • exemption from all taxes, duties, taxes and fees with the exception of social contributions;
  • At the end of the incubation phase:
    • in the event of the sale of the “start-up”: application of a reduced rate of 10% on the capital gain on the sale;
  • In the event of entry into the operation phase, the member benefits for a period of five (05) years from:
    • Exemption from the business license tax;
    • Exemption from registration fees on acts of creation, extension or increase of capital;
    • Exemption from all tax and employer’s charges on salaries paid to their employees
    • Excluding social security contributions;
    • Application of a reduced company tax rate of 15%;
    • Application of a reduction of 50% on the basis of the assessment of advance payment and the minimum company tax collection;
    • Income tax credit of 30% of research and innovation expenses capped at one hundred (100) million FCFA. 
    • Application of a reduced rate of tax on income from movable capital of 5%, on dividends paid to shareholders and interest paid to investors.