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Tax rates in Burkina Faso

Tax Rates

Consumption Taxes

Nature of the Tax
Value-added Tax (VAT) - Taux sur la valeur ajoutée (Local name)
Tax Rate
18% (standard rate)
Reduced Tax Rate
According to the Burkina Faso Mining Code, holders of mining titles do not pay VAT. During the exploration phase, titleholders are exempt from VAT on all imported goods (conditions apply).
Exports are exempt.
Other Consumption Taxes
Goods imported into Burkina Faso are normally subject to customs duties. Special duties are levied on the following goods: beverages, tobacco, perfume and cosmetic products, non-biodegradable plastic packaging and bags, petroleum products, coffee and tea, kola nuts and passenger vehicles with a power that is to equal or greater than 13 horsepower. Airline tickets are subject to special duty.
Customs duties vary between 0% and 35%. Imports are also subject to a statistical royalty (1%), a community solidarity tax (1%), and a CEDEAO community tax (0.5%).

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Corporate Taxes

Company Tax
27.5%
Tax Rate For Foreign Companies
A resident corporation is subject to tax on income from movable capital on a worldwide basis. Other types of taxable income are taxed at source. Non-residents are taxed only on Burkina Faso-source income.
An entity incorporated in Burkina Faso is considered resident for tax purposes.
The Burkina Faso-source income of branches of foreign companies is subject to a branch withholding tax rate of 12.5%. The taxable base applies to 75% of the annual income of the branch.
Capital Gains Taxation
Capital gains arising from the disposal of fixed assets and shares normally are included in taxable income, but only at half of the total amount. Capital gains resulting from mergers for companies and asset contributions are exempt from corporate income tax. Capital gains derived from the sale of mining licenses are taxed at a rate of 20%.
Gains from the sale of real properties are taxed separately at a rate of 10%.
Main Allowable Deductions and Tax Credits
Business costs and expenses are deductible if they are strictly related to the business. Losses may be carried forward four years following the year of the losses.
The deduction of royalties paid to related parties for licenses, patents, trademarks, manufacturing processes or formulas, and other similar rights is limited to 3.5% of turnover (excluding VAT) from goods or services, the production or marketing of which gives rise to the royalty fees.
Provisions are only deductible when the company demonstrates that the asset has become entirely unrecoverable. Self-insurance provisions made by a company are non-deductible, same as for the provision for paid leave and for retirement pay. Head office costs are deductible up to 10% of the overheads from the taxable profit. Furthermore, payments made in foreign countries are deductible within the dual limit of 5% of the turnover excluding taxes and 20% of the overheads of the paying company, providing they correspond to actual operations.
Other Corporate Taxes
Other corporate taxes include: stamp duties for administrative acts (at a fixed or variable rate according to the type of document), a business transfer tax at 10%, a real property tax at 0.1% of the taxable amount, a business license duty, a real estate transfer tax at 8%.
Social security contributions paid by the employer amount to 16% of salaries paid (3.5% for occupational accident contribution; 7% for family allowance; and 5.5% for old age pension). The contribution may not exceed XOF 33,000/month. The contribution is paid to the national social security fund every month by companies with at least 20 employees, or quarterly in other cases.
Other Domestic Resources
Directorate-General for Taxation, in French
Consult Doing Business Website, to obtain a summary of the taxes and mandatory contributions.

Country Comparison For Corporate Taxation

  Burkina Faso Sub-Saharan Africa United States Germany
Number of Payments of Taxes per Year 45.0 36.6 10.6 9.0
Time Taken For Administrative Formalities (Hours) 270.0 284.8 175.0 218.0
Total Share of Taxes (% of Profit) 41.3 47.3 36.6 48.8

Source: Doing Business, Latest available data.

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Individual Taxes

Tax Rate

Personal Income Tax Progressives rates from 12.1% to 25% (reduced on the basis of the number of dependents, from 8% to 14%)
XOF 0 – 30,000 0%
XOF 30,001 – 50,000 12.1%
XOF 50,001 – 80,000 13.9%
XOF 80,001 – 120,000 15.7%
XOF 120,001 – 170,000 18.4%
XOF 170,001 – 250,000 21.7%
Above XOF 250,000 25%
Tax on land revenue (IRF)
applies to income from renting out built or unbuilt
property for any purpose. It applies by income bracket after a flat 50% reduction
XOF 0 to 100,000: 18%
+
above XOF 100,001: 25%
Allowable Deductions and Tax Credits
Several deductions are provided, including transport allowances, family allowances, civil and military pensions and severance pay.
The amount due is reduced as follows:
- 8% in case of one dependent
- 10% in case of two dependents
- 12% in case of three dependents
- 14% in case of four dependents.

Individuals above the age of 60 who receive a pension are exempted from residence tax.

Special Expatriate Tax Regime
Residents are taxable on a worldwide basis, whereas non-residents are subject to tax on Burkina Faso-source employment income provided the activities are carried out in Burkina Faso and the employer is located in the country.

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Double Taxation Treaties

Countries With Whom a Double Taxation Treaty Have Been Signed
Double taxation agreement between Burkina Faso and WAEMU
Double taxation agreement between Burkina Faso and France
Withholding Taxes
Dividends: 12.5%; Interests: 12.5% (for income from deposit accounts and current accounts with a bank or financial broker)/25%; Royalties: 0 (residents)/20% (non-residents).

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Latest Update: November 2022

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