Burkina Faso Investment Income Guide 2026

Overview — Investment Income Taxation

Burkina Faso taxes investment income through withholding taxes at source for most passive income streams. The withholding tax is generally a final tax for resident individuals, meaning no further tax reporting is required. For companies, withheld tax is creditable against corporate tax. For non-residents, withholding tax rates may be reduced under applicable double tax treaties. The Direction Générale des Impôts administers all withholding tax under the Code Général des Impôts. Investment income includes dividends, interest, and capital gains, each with distinct tax treatments aligned with WAEMU regional standards.

Dividends — Withholding Tax

Dividends paid by Burkina Faso-resident companies are subject to withholding tax. The standard rate is 12.5% for resident shareholders. This is a final tax for resident individuals, meaning the dividend income is not included in the individual's progressive IRPP assessment. For corporate shareholders, the WHT is a creditable advance payment against their CIT liability. For non-residents, the dividend WHT rate is generally 15% (reduced under applicable DTTs). WAEMU directives set a harmonised minimum rate for dividend withholding across member states.

Interest Income — Withholding Tax

Interest income is subject to withholding tax at different rates depending on the source:

• Treasury bills & government bonds — withholding tax at source
• Bank deposit interest — withholding tax at source
• Corporate bonds — withholding tax at the standard rate
• Foreign currency deposits — withholding tax applies

The withholding tax on interest is generally a final tax for resident individuals. The rates follow WAEMU directives aimed at harmonising the taxation of financial income across the West African Economic and Monetary Union.

Capital Gains on Securities

Gains from the disposal of shares, bonds, and other securities are treated as ordinary income and taxed at the taxpayer's marginal rate. For individuals, gains are included in IRPP taxable income. For companies, gains are included in chargeable profits subject to CIT. The cost base is adjusted for inflation for long-held securities. There is no separate preferential rate for capital gains on securities in Burkina Faso.

WAEMU Harmonisation

As a member of the West African Economic and Monetary Union (WAEMU), Burkina Faso has aligned its investment income tax rules with regional directives. Key harmonised provisions include:

• Common definition of dividend and interest income
• Harmonised withholding tax rate ranges
• Coordination of tax treatment across member states
• Exchange of information between tax authorities

WAEMU directives aim to eliminate double taxation within the union and promote cross-border investment among member states including Benin, Côte d'Ivoire, Guinea-Bissau, Mali, Niger, Senegal, and Togo.

FAQs

Do I need to report dividend income on my tax return?

If you are a resident individual, the WHT on dividends is generally final, so no further reporting is needed. Non-residents and corporate shareholders should report and claim treaty relief where applicable.

Are foreign investment income and capital gains taxable in Burkina Faso?

Yes, tax residents are taxed on worldwide investment income. Foreign dividends, interest, and capital gains should be declared. Foreign tax credits may be available under DTTs.

Can I claim a refund if WHT exceeds my tax liability?

Yes, where the WHT deducted exceeds the final tax liability, you can claim a refund from DGI by filing an annual return.

Disclaimer

This guide provides general information about Burkinabé investment income taxation 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.