In this page:
Accounting Rules |
Tax Rates |
Intellectual Property |
Legal Framework |
- Tax Year
The tax year is the calendar year.
- Accounting Standards
The Organization for the Harmonization of African Business Law released a Uniform Act on Accounting and Financial Information (AUDCIF), which came into effect on January 1, 2018 for individual accounts and on January 1, 2019 for consolidated accounts, combined accounts, and financial statements prepared in accordance with IFRS.
Since January 1, 2019, all listed companies and firms making a public call for capital are required to meet IFRS Standards.
- Accounting Regulation Bodies
Conseil Permanent de la Profession Comptable (CPPC)
- Accounting Reports
According to art. 8 of the Accounting Act of the Organisation for the Harmonization of Corporate Law in Africa (OHADA), companies must publish a balance sheet, a profit and loss account, a cash flow statement and notes to the financial statements.
All listed companies and companies making a public call for capital must use IFRS standards for their financial statements.
- Publication Requirements
Each company must file a separate tax return before 30 April fafter the tax year ends, together with the tax balance for companies with annual turnover.
- Professional Accountancy Bodies
Ordre National des Experts-Comptables et des Comptables Agréés du Burkina Faso (ONECCA)
- Certification and Auditing
Statutory audits are mandatory for all public companies, limited liability companies and partnerships that exceed one of these three thresholds: total balance sheet in excess of CFA125 million; sales volume greater than CFA250 million; or more than 50 permanent employees with a total balance sheet in excess of CFA250 million and sales volume of CFA500 million. For banks, financial institutions and insurance companies, mandatory audits are also required.
- Accounting News
- 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%).
- Company Tax
- 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
|Number of Payments of Taxes per Year
|Time Taken For Administrative Formalities (Hours)
|Total Share of Taxes (% of Profit)
- Latest available data.
|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
|XOF 30,001 – 50,000
|XOF 50,001 – 80,000
|XOF 80,001 – 120,000
|XOF 120,001 – 170,000
|XOF 170,001 – 250,000
|Above XOF 250,000
|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.
- Independence of Justice
The constitution (article 129) and law of Burkina Faso prohibit arbitrary arrest and detention, and provide for an independent judiciary. According to NGOs, however, the judiciary is still corrupt, inefficient, and subject to executive influence. The law presumes defendants are innocent. Defendants have the right to be informed promptly and in detail of the charges.
- Equal Treatment of Nationals and Foreigners
Foreigners are formally granted the same rights and obligations as nationals.
- The Language of Justice
- Recourse to an Interpreter
Courts provide interpretation services.
- Sources of the Law and Legal Similarities
Burkina Faso’s legal system is based on civil law and is largely derived from the French legal system. The hierarchy of laws in Burkina Faso is as follows: the constitution, regularly signed and ratified international treaties, acts of parliament, ordinances, decrees.
- Checking National Laws Online
Library of the Congress website
- General Information
- Opening Hours and Days
Shops and businesses are normally open from 8am to noon and from 3pm to 6pm (Monday to Friday) and from 9am to 1pm on Saturday.
Banks usually open from 9am to 2pm (Monday to Friday).
|New Year's Day
|International Women's Day
|All Saints' Day
|Prophet Muhammad's Birthday
|Proclamation of Independence Day
- Holiday Compensation
Periods When Companies Usually Close
|Closure for Easter
||End of March/Early April
|Closure for Christma
||End of December
|Closure for Eid
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Latest Update: September 2023