Tax In Burkina Faso

A Contractor’s Guide to Taxes :

One of the most consistently challenging aspects of contracting in Burkina Faso is complying with the country’s tax system. As well as paying tax in Burkina Faso, you might also still be eligible to pay some tax in your home country, and understanding the legislation behind this can be a challenge.

How do I calculate my taxable income:

If you’re working in Burkina Faso under a permanent contract, many employers will handle your tax under the PAYE (pay-as-you-earn) system. This means that they calculate and process your taxes in Burkina Faso for you and then send you a net wage. Your income tax, public health insurance, social security and other deductions will all be covered by this payment. This is the easiest way to handle your income tax in Burkina Faso, but contractors may not be offered this service because of their short stay with each employer.

Anybody who can’t pay their tax in Burkina Faso through PAYE is left with the prospect doing everything themselves.

Do you know much about Burkina Faso Tax Law? Does Burkina Faso have a tax treaty with your home country? You will need to find out or find someone who can help! Income tax in Burkina Faso can range from 12.1 to 25 percent, and you need to be sure you are placed in the correct tax brackets.

Tax Calculator:

If you are a contractor and want a calculation on your tax and net retention in Burkina Faso, we can supply it to you free of charge.

Using an Umbrella Company for Income Tax :

Contractors in Burkina Faso are faced with masses of paperwork and numerous wasted hours filing a tax return unless they find an alternative option. A Burkina Faso umbrella company can act as your employer during your stay in the country whilst still allowing you the freedom of a contractor. The only difference is that you submit your timesheets to them; they’ll calculate and pay your taxes as you earn, and then you receive a net wage (as well as documentation for your records).

The companies are experts in Burkina Faso taxation, and they’ll ensure that you keep the largest proportion of your earnings whilst complying with local laws. They can deal with any issues with the Burkina Faso tax office or tax department directly including processing your tax refund if you are eligible.

How We Can Help You with Tax:

We work with numerous umbrella companies in Burkina Faso, many of whom are experts in tax and immigration laws. If you have any questions about tax in Burkina Faso, we’ll get the answers from them directly so you can rest assured you’ll be getting accurate information. We have comprehensive knowledge of the different services they provide, and can help you find the right company to handle your income tax. We help oil and gas workers, software developers, IT project managers, testers, business analysts and telecommunications contractors get tax efficient payments and sponsorship for their Burkina Faso work permit.

Our advice is 100 percent free, and comes with no obligations. You will be paying taxes in Burkina Faso but without the overhead of directly dealing with the Burkina Faso tax authorities. Get in touch with us today for some reliable advice on tax in Burkina Faso!

When Do You Need to Lodge Your Tax Return?:
30 April (of the year following the income tax year)
Tax Filing Deadline :
30 April (of the year following the income tax year)
Can you file it online? :
Yes, https://esintax.bf/
Currency:
West African CFA Franc (XOF)
Tax-free Threshold in:
XOF30,000
Grossed Income:
0 – 30,000
Tax Rate:
0%
Grossed Income:
>30,000 – 50,000
Tax Rate:
12.1%
Grossed Income:
>50,000 – 80,000
Tax Rate:
13.9%
Grossed Income:
>80,000 – 120,000
Tax Rate:
15.7%
Grossed Income:
>120,000 – 170,000
Tax Rate:
18.4%
Grossed Income:
>170,000 – 250,000
Tax Rate:
21.7%
Grossed Income:
>250,000
Tax Rate:
25%
How long does it take to set up:
3 days
How much does it cost:
XOF47,500
Is it easy? :
Starting your own business in Burkina Faso is quick, but registration may be costly, and has its administrative challenges. Burkina Faso has a ‘Starting a Business Rank’ of 74 out of 190 countries (Source: The World Bank).
How to File Taxes in:

You are not required to file taxes in Burkina Faso If your taxable income is derived from one employer only.

Notes:

The table above refers to monthly taxable income.

Does the 183 day rule apply in:

No

When do you become a tax resident in:

You become a tax resident in Burkina Faso when:

  • You have a permanent home in Burkina Faso; or
  • You are employed by a resident corporation.
Am I taxed on my global income in:

Residents are taxed on their global income. Non-residents are taxed on their Burkina Faso-source income only, if (i) it arises from activities are performed in Burkina Faso, and (ii) the employer is in the country.

Client comment

  • Great advice and excellent service on contracting and immigration solutions in the UK. I would highly recommend Tim and the team to assist you with accurate, clear and concise contracting advice in the UK or any other country for that matter.

    Prishen Pillay Shell International Trading & Shipping / Global DBA Operations Lead
  • I utilized PEO services with Contractor Taxation & have found the services invaluable. We had to quickly establish a presence in China to meet a perceived large market, knowing how difficult it could be setting up a complete operation there. CT helped us immensely to navigate these waters and establish this beachhead without a lot of the normal distractions associated w/opening a full operation. This allowed us to focus on our client’s expectations and keep us moving forward in the market.

    John Zimmer Charles River Development / Vice-President, Finance