Burundi legal and accounting and tax considerations in 2024

1. Corporate tax in Burundi is levied at a standard rate of 30%. If a company makes a loss then the taxation is 1% of the turnover. The tax year in Burundi is the calendar year and annual tax returns must be filed by 30^th April of the subsequent year. Penalties vary based on nature of tax and/or violation;
2. Branches pay a corporate tax rate of 30% and there is no additional withholding tax on branch remittances;
3. All corporate businesses are required to register for VAT. The standard VAT rate levied on provision of goods and services in Burundi is at a rate of 18%. Certain goods and services are either subject to a reduced VAT rate of 10%, zero-rated or tax exempt. All VAT returns must be submitted monthly by the 15^th of the subsequent month;
4. Capital gains tax in Burundi levied at the rate of 20%. Capital gains from the sale of immovable commercial property is taxed at the rate of 15%;
5. Withholding tax is levied in Burundi on i) dividends at the rate of 15%, ii) interest at the rate of 15%, iii) royalties at the rate of 15%, iv) management and professional fees at the rate of 15% and v) acquisition of immovable and movable assets and financial assets from a non-resident at the rate of 5% which must be filed with OBR;
6. Free Zone companies in Burundi are tax exempt for the first ten years of operation and thereafter are required to pay a reduced corporate tax rate of 15%;
7. Employers must submit to the relevant authorities social security contributions at the rate of 6% plus an occupational hazard tax at the rate of 3% of the gross salary on behalf of their employees;
8. Public tenders are taxed at the rate of 4% of the transaction exclusive of VAT;
9. Exchange-control regulations exist in Burundi on the import and export of capital. Financial remittances are subject to approval by the Burundi Central Bank;
10. 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.