Burkina Faso Corporate Tax Guide 2026

Overview — Corporate Tax in Burkina Faso

Corporate tax in Burkina Faso is governed by the Code Général des Impôts and administered by the Direction Générale des Impôts (DGI). A company is tax resident if it is incorporated under Burkinabé law or if its place of effective management is in Burkina Faso. Resident companies are taxed on worldwide income; non-resident companies with a permanent establishment are taxed on Burkina Faso-source income only. Companies must register for tax with DGI and obtain a Taxpayer Identification Number (IFU). The tax year aligns with the calendar year. Annual returns are due by 30 April of the following year.

Standard Corporate Tax Rate — 27.5%

The standard CIT rate for resident companies in Burkina Faso is 27.5% of chargeable profits. Non-resident companies with a permanent establishment are also taxed at 27.5% on Burkina Faso-source income. Taxable profit is computed as gross revenue less allowable deductions including operating expenses, capital allowances (depreciation), interest costs, and losses carried forward. Losses may be carried forward for up to 5 years. Capital gains are included in ordinary income and taxed at the standard CIT rate.

Reduced Rates — Agriculture 20%

Companies engaged in agriculture, livestock, forestry, and fishing benefit from a reduced CIT rate of 20%. This incentive is designed to promote primary production and food security. To qualify, the company must derive at least 50% of its gross income from qualifying agricultural activities. Agricultural companies may also benefit from additional tax holidays and investment incentives under the investment code.

Priority Sectors — 15%

Companies operating in priority sectors designated by the government may qualify for a reduced CIT rate of 15%. Priority sectors include manufacturing, renewable energy, mining, tourism, and information technology. The reduced rate is typically granted for a specified period under the investment code and may be subject to minimum investment thresholds. Qualifying companies must obtain approval from the Ministry of Economy and Finance.

Branches of Foreign Companies

Foreign companies operating through a branch in Burkina Faso are taxed at 27.5% on Burkina Faso-source profits. Branch profits remitted to the head office may be subject to a branch profit remittance tax. Foreign companies may prefer to incorporate a Burkinabé subsidiary to benefit from local tax incentives and the standard dividend withholding tax regime.

Capital Allowances (Depreciation)

Burkina Faso uses a capital allowance system for tax purposes. Rates vary by asset category:

• Plant & machinery — 10–20% per annum (declining balance)
• Buildings — 5–10% per annum (straight-line)
• Motor vehicles — 20–25% per annum (declining balance)
• Computers & office equipment — 25–33% per annum
• Agricultural assets — accelerated rates available

Companies investing in qualifying assets may benefit from accelerated depreciation and investment tax credits under the investment code.

FAQs

What is the penalty for late filing of corporate tax returns?

Late filing attracts penalties of 10% of the tax due plus interest at the statutory rate per month overdue. Additional penalties may apply for failure to maintain proper records or for tax evasion.

Can foreign companies claim treaty relief?

Yes, Burkina Faso has double tax treaties with WAEMU member states and several other countries. Treaty relief may reduce withholding tax rates on dividends, interest, and royalties paid to non-residents.

Is there a minimum tax for loss-making companies?

Burkina Faso imposes a minimum flat-rate tax (IMT — Impôt Minimum Forfaitaire) on companies with low or no taxable profit. The IMT is calculated based on turnover and is creditable against future CIT.

Disclaimer

This guide provides general information about Burkinabé corporate tax for the 2026 tax year. Tax laws and rates may change. Always consult with a qualified tax advisor or the Direction Générale des Impôts for advice specific to your situation. InvestmentKit does not provide tax advice.