One of the most consistently challenging aspects of contracting in Burundi is complying with the country’s tax system. As well as paying tax in Burundi, you might also still be eligible to pay some tax in your home country, and understanding the legislation behind this can be a challenge.
If you’re working in Burundi 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 Burundi 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 Burundi, but contractors may not be offered this service because of their short stay with each employer.
Anybody who can’t pay their tax in Burundi through PAYE is left with the prospect doing everything themselves.
Do you know much about Burundian Tax Law? Does Burundi have a tax treaty with your home country? You will need to find out or find someone who can help! Income tax in Burundi can range from 20 to 30 percent, and you need to be sure you are placed in the correct tax brackets.
If you are a contractor and want a calculation on your tax and net retention in Burundi, we can supply it to you free of charge.
Contractors in Burundi are faced with masses of paperwork and numerous wasted hours filing a tax return unless they find an alternative option. A Burundian 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 Burundian 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 Burundian tax office or tax department directly including processing your tax refund if you are eligible.
We work with numerous umbrella companies in Burundi, many of whom are experts in tax and immigration laws. If you have any questions about tax in Burundi, 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 Burundian work permit.
Our advice is 100 percent free, and comes with no obligations. You will be paying taxes in Burundi but without the overhead of directly dealing with the Burundian tax authorities. Get in touch with us today for some reliable advice on tax in Burundi!
Individuals are not required to file taxes on employment income. Employers must withhold taxes under the PAYE system, and remit payments to the tax authorities within 15 days following the end of the month for which the tax was due.
Deductions are allowed for:
(i) Employee contributions to the state pension;
(ii) Contributions to a qualified pension fund or complementary social security contributions (capped at 20% of gross income);
(iii) Fringe benefits relating to transportation expenses (capped at 15% of the basic salary); and
(iv) Rental or compensatory allowances (unless they exceed 60% of the basic salary, in which case the excess is treated as taxable income).
You become a tax resident in Burundi when:
- You are a Burundian national;
- Your permanent abode is in Burundi; or
- You spend 183 days or more in Burundi during the tax year.
Residents are taxed on their global income. Non-residents are taxed on their Burundi-source income only.