Verified Facts
Tax rates in Burundi range from 10% to 30% for personal income tax, with a corporate tax rate of 30% and a value-added tax (VAT) rate of 18%.
Tax laws change frequently. Always consult a qualified tax professional for advice specific to your situation. This is a general guide only.
Quick Facts
Tax System Overview
Burundi operates a territorial taxation system, where individuals and companies are taxed on their income derived from Burundian sources, regardless of their tax residency status. The tax year in Burundi runs from January to December. To be considered a tax resident in Burundi, an individual must have a permanent home in the country, or have been present in the country for at least six months in a calendar year. Non-residents are taxed only on their Burundian-sourced income.
The tax system in Burundi is administered by the Directorate General of Taxes, which is responsible for collecting taxes, enforcing tax laws, and providing tax services to taxpayers. The tax authority has implemented various measures to improve tax compliance, including the introduction of electronic filing and payment systems. Taxpayers can also access tax information and services through the tax authority's website and social media platforms.
Personal Income Tax
| Income Bracket (BIF) | Tax Rate |
|---|---|
| 0 - 500,000 | 10% |
| 500,001 - 1,000,000 | 15% |
| 1,000,001 - 2,000,000 | 20% |
| 2,000,001 - 5,000,000 | 25% |
| 5,000,001 and above | 30% |
| The tax rates in Burundi are progressive, with higher income earners paying a higher tax rate. Taxpayers are entitled to various deductions and allowances, including a personal allowance of BIF 500,000, and deductions for mortgage interest, medical expenses, and charitable donations. Tax returns must be filed by the end of March following the tax year, and tax payments can be made in installments or as a lump sum. |
Corporate & Business Tax
- The corporate tax rate in Burundi is 30%, which applies to all companies, including foreign companies with a permanent establishment in the country.
- Small business incentives are available for small and medium-sized enterprises, including a reduced tax rate of 20% for companies with an annual turnover of less than BIF 100 million.
- Free zones have been established in Burundi to attract foreign investment, with benefits including a reduced tax rate of 10% and exemptions from customs duties and VAT.
- Registration requirements for businesses in Burundi include obtaining a business license, registering with the tax authority, and obtaining a social security number.
VAT / Sales Tax
- The standard VAT rate in Burundi is 18%, which applies to most goods and services, including imports.
- Reduced rates of 10% and 5% apply to certain goods and services, including basic foodstuffs, medicines, and educational materials.
- Exemptions from VAT include exports, financial services, and charitable activities.
- Tourist refund schemes are available for foreign tourists, who can claim a refund of VAT paid on goods and services purchased in Burundi.
For Expats & Foreign Workers
- Tax residency rules for expats and foreign workers in Burundi are based on the number of days spent in the country, with individuals who spend more than 183 days in a calendar year considered tax residents.
- Double taxation treaties have been signed by Burundi with several countries, including Belgium, France, and Rwanda, to avoid double taxation and fiscal evasion.
- Social security contributions are mandatory for all employees in Burundi, including foreign workers, with contributions ranging from 10% to 20% of gross salary.
- Remittance rules allow foreign workers to remit up to 50% of their earnings abroad, subject to tax withholding and exchange control regulations.
- Work permits are required for foreign workers in Burundi, which can be obtained through the Ministry of Labor and Social Security.
- Residence permits are also required for foreign workers, which can be obtained through the Ministry of Interior and Public Security.
Crypto & Investment Income
- Investment income, including dividends, interest, and capital gains, is subject to tax in Burundi, with tax rates ranging from 10% to 30%.
- Dividends are subject to a withholding tax of 15%, which can be reduced or exempted under double taxation treaties.
- Cryptocurrency is not specifically regulated in Burundi, but income derived from cryptocurrency transactions is subject to tax, including capital gains tax and VAT.
- Foreign-sourced income is not taxed in Burundi, unless it is remitted to the country, in which case it is subject to tax.