Burkina Faso legal and accounting and tax considerations in 2024

1. The standard corporate tax rate for companies registered in Burkina Faso is 27.5% on all profits. The tax year in Burkina Faso is the calendar year and annual tax returns must be filed by 30^th April of the subsequent year;
2. Branches pay a corporate tax rate of 27.5% plus an additional 12.5% withholding tax on branch remittances;
3. In Burkina Faso, VAT is levied at a flat rate of 18% on all goods, services and imports. All VAT returns must be submitted quarterly;
4. Capital gains tax in Burkina Faso is subject to the standard corporate tax rate of 27.5%. Gains from sale of real estate are taxed separately at the rate of 10%;
5. Withholding tax is levied in Burkina Faso on i) dividends at the rate of 12.5% and ii) interest on bonds and debentures at the rate of 6% and interest on debt instruments at the rate of 25%. Withholding tax is levied on services in the mining industry at the rate of 5% for residents and 10% for non-residents;
6. Employers must submit to the relevant authorities i) payroll tax at the rate of 4% of gross salary ii) social security contributions at the rate of 16% of their employees’ gross salaries;
7. Stamp duty is levied on contracts at a flat rate of US$1 per page;
8. Transfer tax is levied at the rate of 10% on real property;
9. Exchange-control regulations exist in Burkina Faso for financial remittances outside the West African Economic and Monetary Union (UEMOA);
10. Burkina Faso has signed double tax treaties with France and the other member states of UEMOA which include Benin, Cote d’Ivoire, Guinea-Bissau, Mali, Niger, Senegal and Togo;
11. Healy Consultants Compliance Department will assist our Clients with i) documenting and implementing accounting procedures ii) implementing financial accounting software iii) preparation of financial accounting records and iv) preparing forecasts, budget and sensitivity analysis;
12. It is important our Clients’ are aware of their personal and corporate tax obligations in their country of residence and domicile; and they will fulfill those obligations annually. Let us know if you need Healy Consultants’ help to clarify your annual reporting obligations.