Umbrella Company in Burkina Faso

Independent contracting in Burkina Faso isn’t always straightforward. You’ve got immigration issues, tax difficulties, and mountains of complex admin work. Even worse, missteps can cost you serious money, or even land you in legal trouble.

Before you consider taking a contract in Burkina Faso, you should be aware of what you’re getting into – and how you can make it simpler.

Difficulties of Contracting in Burkina Faso

Generally, you need to have an employer sponsor in order to secure the appropriate work permit and work visa for Burkina Faso.

If you’re working independently, it can be difficult to find clients willing to sponsor you. Moreover, even if your client can do this, you’ll need a new sponsor each time you decide to take on a new contract. Of course, every new sponsor will mean more paperwork.

Also, are you familiar with the intricacies of the tax system in Burkina Faso, as well as your own country’s laws on overseas earnings? If so, good on you!

However, if you’re like the rest of us, figuring out (much less reducing) your tax liability in Burkina Faso and your home country can seem like full-time work in itself.

How Umbrella Companies Work

Most freelance workers aren’t superheroes who successfully tackle these issues all on their own. There are companies who specialise in helping workers make the most out of their contracts.

They’re called Umbrella Companies (or, contractor management companies).

Basically, an Umbrella Company acts as your full-time employer, even though you maintain your independence as a contractor. They collect and filter payments from your clients, filtering out the necessary social security and fees. You send them your timesheets, and they send you payments.

Because they act as your “employer,’ they can sponsor you and provide a single work permit for multiple contracts in Burkina Faso. Even better, most are experts in Burkina Faso and expat tax law, meaning they’ll also help you optimise your earnings in Burkina Faso.

Although the Umbrella Company is technically your “employer,” you’re essentially freeing yourself to work even more independently. You still dictate your contracts, your hours, your schedule. The Umbrella Company simply filters out the time-consuming admin and immigration issues, allowing you to focus on your new contract.

Why Use an Umbrella Company in Burkina Faso

Most people want to do their work, earn their money and enjoy their spare time without taking on loads of admin in a new country. That is why an umbrella company can help.

When you’re working through an Umbrella Company, you’ll essentially be outsourcing the admin and tax issues to specialists.

While the umbrella company will charge a fee, you’ll likely end up saving more money in the long run: you’ll be able to focus on your work, expertly reduce your tax liability, and comply with all laws and regulations in Burkina Faso (which means avoiding fees, fines, or even worse penalties).

How We Can Help You

There’s a huge variety of Umbrella Companies with different specialities and advantages in Burkina Faso. How do you find the right one for your circumstances?

We work closely with Umbrella Companies all throughout Burkina Faso and match contractors with the right company for them. If you’ve already secured a contract in Burkina Faso, we can help you find your best match (for free). Or, we can simply give you feedback on your situation (for free).

A Contractor's Guide to Taxes in Burkina Faso

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 in Burkina Faso

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 Filing in Burkina Faso


When Do You Need to Lodge Your Tax Return?30 April (of the year following the income tax year)
Tax Filing Deadline30 April (of the year following the income tax year)
Can you file it online?Yes, https://esintax.bf/

How to File Taxes in Burkina Faso

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

Tax Figures in Burkina Faso

CurrencyWest African CFA Franc (XOF)
Tax-free Threshold in Burkina FasoXOF30,000
Income Tax Rates
Grossed Income Tax Rate (%)
0 - 30,000 0%
>30,000 - 50,000 12.1%
>50,000 - 80,000 13.9%
>80,000 - 120,000 15.7%
>120,000 - 170,000 18.4%
>170,000 - 250,000 21.7%
>250,000 25%
Notes

The table above refers to monthly taxable income.

Tax Residency in Burkina Faso

When do you become a tax resident in Burkina Faso

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.

Does the 183 day rule apply in Burkina Faso

No

Am I taxed on my global income in Burkina Faso

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.

Can you set up your own Limited Company in Burkina Faso

How long does it take to set up 3 days
How much does it costXOF47,500
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).

Tax Calculator in Burkina Faso

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 in Burkina Faso

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 in Burkina Faso

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!

 

Work Permit Processing Time

Immigration is one of the primary concerns for any contractor hoping to start working in Burkina Faso. Permanent employees will find it easy to get their Burkina Faso work permit because they’ll receive “sponsorship” for their entire stay from their prospective employer.

The Burkina Faso work permit, known more commonly as the Worker Card, is dependent on this sponsorship because it confirms that you’ll be earning money during your stay in the country. Contracting in Burkina Faso is more difficult because the work permit is tied to one employer, so you have to change it to suit each new contract. Thankfully, umbrella companies provide a convenient and effective solution to this issue.

How Can Umbrella Companies Help You Get a Work Permit in Burkina Faso ?

As your permanent employer, umbrella companies are able to sponsor you for your Burkina Faso work permit provided they’re on the register of approved sponsors. Many different companies offer this service, because it makes contracting in Burkina Faso infinitely simpler and saves you the hassle of continuous paperwork. Instead of changing your work permit every time you get a new contract, you can just work how you ordinarily would under the same permit. They protect you from the bureaucratic “rain” of legal compliance with the Burkina Faso immigration authorities. They can even deal with the Burkina Faso Embassy directly. 

Through their service you may be able to use a business visa to get started quickly and then transition to a work visa in Burkina Faso. It depends on your specific visa requirements. Be aware you may have to register for a residence permit in Burkina Faso.

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."

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Shell International Trading & Shipping