Table of Contents
- Executive Summary: The State of Tax Law in Burkina Faso (2025)
- Government Policy Shifts: Key Tax Legislation Updates
- Corporate Taxation: New Rates, Incentives, and Compliance Demands
- Personal Income Tax: Major Changes Affecting Individuals
- VAT & Indirect Taxes: Reform Highlights and Impact Analysis
- International Taxation: Cross-Border Implications for Investors
- Tax Compliance: Reporting Obligations and Enforcement Trends
- Key Statistics: Revenue Collection and Taxpayer Data (2023–2025)
- Future Outlook: Predicted Reforms and Their Business Impact (2025–2030)
- Official Resources & Guidance: Ministry of Economy and Finance, Burkina Faso
- Sources & References
Executive Summary: The State of Tax Law in Burkina Faso (2025)
In 2025, Burkina Faso’s tax law landscape continues to evolve as the government pursues fiscal consolidation, broadens its tax base, and aligns with international standards. The General Tax Code (Code Général des Impôts) remains the foundational legal framework, periodically updated through annual Finance Laws to reflect economic and policy priorities. Recent reforms have focused on enhancing domestic resource mobilization, combating tax evasion, and improving tax administration efficiency.
Key taxes in Burkina Faso include corporate income tax (CIT) at a standard rate of 27.5%, value-added tax (VAT) at 18%, personal income tax (progressive, up to 30%), and various indirect and local taxes. The 2025 Finance Law introduced targeted adjustments, such as digitalizing tax filings, expanding VAT coverage, and strengthening transfer pricing rules to comply with the OECD’s BEPS standards (Direction Générale des Impôts). The government has also prioritized fiscal incentives for sectors such as renewable energy and agribusiness, aiming to attract investment and foster economic diversification.
Tax compliance remains a challenge. According to the latest statistics, the tax-to-GDP ratio stands at roughly 15%, below the West African Economic and Monetary Union (WAEMU) average target of 20% (IZF – Initiative pour la Transparence des Industries Extractives). The government, through the Tax Administration Modernization Program, is investing in digital infrastructure, taxpayer education, and the expansion of the taxpayer base, including the formalization of micro and small enterprises.
Enforcement has intensified, with strengthened audit processes, increased penalties for non-compliance, and enhanced inter-agency data exchange. Recent years have seen the introduction of electronic invoicing requirements and mandatory online declarations for large and medium-sized enterprises, with plans to extend these to smaller businesses by 2026 (Direction Générale des Impôts).
Looking ahead, tax law in Burkina Faso is expected to further converge with regional and global standards. The government is committed to ratifying additional bilateral tax treaties, improving dispute resolution mechanisms, and continuing to digitize tax processes. However, challenges such as informality, constrained administrative capacity, and regional security concerns may temper the pace of progress. Overall, the outlook for 2025 and beyond is one of cautious optimism, as Burkina Faso seeks to balance revenue needs with investment promotion and socio-economic development imperatives.
Government Policy Shifts: Key Tax Legislation Updates
In 2025, Burkina Faso’s tax landscape continues to evolve, driven by a pressing need to increase domestic revenue and align with international standards. The government has enacted and proposed several key legislative updates to reinforce tax compliance, improve administrative efficiency, and foster economic resilience amid ongoing security and fiscal challenges.
One of the most significant recent measures is the ongoing implementation of the 2023 Finance Law, which remains central to fiscal policy through 2025. This law introduced adjustments to the Value Added Tax (VAT) regime, including the rationalization of exemptions and a broadening of the tax base. The government also updated the minimum lump-sum tax (impôt minimum forfaitaire) for small businesses, seeking to capture a wider segment of economic actors into the formal tax net. Corporate income tax (CIT) rates remain at 27.5%, with specific incentives and sectoral adjustments applicable to priority sectors such as mining and telecommunications.Direction Générale des Impôts
Compliance measures have intensified, with the tax administration investing in digitalization and online services to streamline filing and payment procedures. In 2024–2025, the expansion of the e-Tax platform has aimed to reduce compliance costs and bolster transparency, while the introduction of real-time cross-checking mechanisms helps detect underreporting and tax evasion. The government has also strengthened its transfer pricing regulations, aligning with global best practices and enhancing scrutiny of multinational enterprises operating in Burkina Faso.Ministère de l’Économie, des Finances et de la Prospective
Statistical data underscores the impact of these reforms: tax revenue as a share of GDP rose modestly from 16.1% in 2022 to approximately 16.7% in 2024, with projections targeting 17% by the end of 2025. Key contributors to this increase include VAT (about 33% of total tax receipts) and corporate taxes (19%). Customs duties and excise taxes also remain critical, given Burkina Faso’s landlocked geography and reliance on cross-border trade.Inspection Générale des Finances
Looking ahead, the government’s 2025–2027 fiscal strategy prioritizes further digital transformation, gradual reduction of certain tax incentives, and continued alignment with Economic Community of West African States (ECOWAS) tax directives. Enhanced collaboration with regional and international tax bodies is expected to drive reforms, with the overarching goal of expanding the tax base, promoting voluntary compliance, and ensuring fiscal sustainability in a challenging economic context.
Corporate Taxation: New Rates, Incentives, and Compliance Demands
In Burkina Faso, corporate taxation has undergone significant changes in recent years, with ongoing reforms aimed at enhancing compliance, attracting investment, and increasing domestic revenue mobilization. As of 2025, the standard corporate income tax (CIT) rate remains at 27.5%, applicable to most resident companies. However, the government continues to adjust tax incentives and compliance requirements to align with national economic objectives and international standards.
A notable development is the targeted use of tax incentives to promote investment in priority sectors such as mining, agriculture, and renewable energy. The 2023 Finance Law introduced and subsequently refined provisions for tax credits, accelerated depreciation, and exemptions for companies operating in designated economic zones or engaging in infrastructure projects deemed vital for national development. These incentives are subject to rigorous eligibility criteria and reporting obligations, reinforcing the government’s commitment to transparency and efficient tax expenditure management (Direction Générale des Impôts).
Compliance demands have increased, with a shift toward digitalization of tax administration. The mandatory use of the eSINTAX platform for filing corporate tax returns and managing payments has expanded, aiming to reduce errors, minimize face-to-face interactions, and combat tax evasion. Companies are now required to submit detailed transfer pricing documentation, especially multinationals, in line with the OECD’s Base Erosion and Profit Shifting (BEPS) framework. This aligns Burkina Faso with regional and global best practices, as stipulated by the West African Economic and Monetary Union (UEMOA) and the Organization for the Harmonization of Business Law in Africa (OHADA).
- In 2024, corporate tax contributed about 15% of total tax revenue, with mining firms accounting for a substantial share (Direction Générale des Impôts).
- Non-compliance penalties have been strengthened, ranging from monetary fines to temporary suspension of business licenses for repeated violations.
- Tax audits are increasingly data-driven, leveraging electronic filing to identify discrepancies and enforce compliance.
Looking ahead to 2025 and beyond, the outlook for corporate taxation in Burkina Faso is shaped by continued modernization of the tax administration, greater regional harmonization, and a focus on broadening the tax base. The government is expected to introduce further digital tools, enhance taxpayer support services, and refine incentive schemes to attract both domestic and foreign investment. However, businesses must remain vigilant to evolving compliance requirements, particularly regarding documentation, electronic filing, and sector-specific obligations.
Personal Income Tax: Major Changes Affecting Individuals
In 2025, personal income tax (PIT) in Burkina Faso continues to be governed by the General Tax Code, which is administered and updated by the Direction Générale des Impôts. The PIT system is progressive, applying increasing rates to higher income brackets. Recent legislative activity has focused on strengthening compliance, digitalizing tax filing, and expanding the tax base to bolster domestic revenue in line with fiscal targets set by the Ministry of Economy, Finance and Prospective (Ministère de l’Économie, des Finances et de la Prospective).
Significant changes for individuals in 2025 include the consolidation of tax brackets and a modest adjustment to rate thresholds to account for inflation and cost-of-living changes. The PIT rates now range from 10% for the lowest bracket to 30% for the highest, applicable to annual income exceeding 5,000,000 XOF. These changes were enacted through the 2024 Amending Finance Law, which took effect on January 1, 2025 (Ministère de l’Économie, des Finances et de la Prospective).
Another major development is the expansion of the digital tax portal, enabling individuals to file returns and pay taxes online. By mid-2025, over 60% of PIT declarations are expected to be made electronically, a substantial increase from less than 30% in 2022. This digitalization is part of a broader effort to reduce fraud, expedite processing, and enhance taxpayer services (Direction Générale des Impôts).
Compliance measures have also intensified. The tax authority has launched targeted audits and data-matching initiatives, focusing especially on high-net-worth individuals and professionals in the informal sector. Penalties for non-compliance were raised in the 2024 amendments, with late filing fees now set at 5% of unpaid tax per month, capped at 50% of the total liability.
Key statistics underscore these reforms: personal income tax accounted for roughly 15% of total domestic revenue in 2023, and preliminary figures for 2024 suggest a 10% increase in collections, attributed largely to the expanded digital system and stricter enforcement (Ministère de l’Économie, des Finances et de la Prospective).
Looking ahead, the government aims to further align PIT rules with regional standards set by the West African Economic and Monetary Union (WAEMU), and to continue broadening the tax base through formalization of the informal sector and improved data analytics. Ongoing dialogue with professional associations and civil society is expected to shape future reforms, with an emphasis on fairness, transparency, and administrative efficiency.
VAT & Indirect Taxes: Reform Highlights and Impact Analysis
Burkina Faso’s value-added tax (VAT) and indirect tax regime has undergone notable reforms in recent years, reflecting the government’s efforts to bolster domestic revenue, harmonize with regional tax frameworks, and improve compliance. As of 2025, VAT remains a cornerstone of the indirect tax system, with the standard rate maintained at 18%, applicable to most goods and services except for those specifically exempt or zero-rated under national legislation. The tax base has been gradually broadened, aligning with the objectives set out in the country’s fiscal consolidation strategies and commitments under the West African Economic and Monetary Union (WAEMU) directives.
Recent legislative updates, particularly the 2024 Finance Law, have introduced stricter documentation requirements for VAT credits, expanded the list of taxable services, and adjusted certain exemptions to limit abuse and revenue leakage. For instance, the new law mandates electronic invoicing for large taxpayers, with anticipated phased implementation for medium-sized enterprises through 2026. This digitalization is intended to enhance transparency and improve VAT collection efficiency (Direction Générale des Impôts).
Burkina Faso’s indirect tax system also includes excise duties on selected products such as tobacco, alcoholic beverages, and petroleum products. In 2025, excise rates have been incrementally increased in line with public health and revenue objectives, and the scope of environmental taxes has been modestly expanded to cover more plastic and electronic waste items. These measures are expected to generate additional budgetary resources, with the government projecting an increase in indirect tax revenue from 8.2% of GDP in 2023 to a target of over 9% by 2026 (Ministère de l'Économie, des Finances et de la Prospective).
Compliance remains a key challenge. The tax administration has intensified audits, particularly in high-risk sectors like retail, construction, and telecommunications. Penalties for non-compliance with VAT obligations have been reinforced, and the introduction of risk-based audit selection is expected to enhance enforcement while reducing the compliance burden for low-risk taxpayers. According to official statistics, VAT accounts for approximately 35% of total tax revenues, underscoring its fiscal significance (Direction Générale des Impôts).
Looking ahead, the outlook for VAT and indirect taxes in Burkina Faso is shaped by ongoing digitalization, regional tax harmonization, and continued efforts to broaden the base and improve compliance. While these reforms are expected to boost state revenues and support development goals, effective implementation and taxpayer education remain critical to realizing their full impact.
International Taxation: Cross-Border Implications for Investors
Burkina Faso’s tax law framework for international investors in 2025 is shaped by ongoing legislative reforms and its commitment to global tax standards. The country’s principal tax legislation, the General Tax Code, governs income, corporate, and indirect taxation, with frequent amendments to align with both regional and international obligations.
A central feature is Burkina Faso’s participation in the West African Economic and Monetary Union (WAEMU) and the Economic Community of West African States (ECOWAS), which influences cross-border taxation through standardized customs duties and value-added tax (VAT) rates. For instance, cross-border investors face a standard corporate income tax (CIT) rate of 27.5%, with certain incentives available in priority sectors under the Investment Code. The standard VAT rate remains at 18%, applicable to goods and services, including those involving foreign entities Direction Générale des Impôts.
Double taxation remains a key concern for international investors. Burkina Faso has entered into several bilateral tax treaties, primarily with other African nations and France, to prevent double taxation and facilitate the exchange of tax information. These treaties provide for reduced withholding tax rates on dividends, interest, and royalties for qualifying investors. In the absence of a treaty, withholding tax on payments to non-residents is generally 12.5% for dividends and 15% for interest and royalties Direction Générale des Impôts.
Transfer pricing regulations have become increasingly pertinent. Burkina Faso, aligning with international best practices, requires related-party cross-border transactions to be conducted at arm’s length. Multinational enterprises must maintain documentation supporting their transfer pricing policies, and the tax authorities have announced plans to strengthen audit capacity in this area for 2025 and beyond Direction Générale des Impôts.
Compliance remains a challenge, with the government reporting a tax-to-GDP ratio of approximately 15% in recent years, below the WAEMU target of 20%. Efforts are underway to improve electronic filing, expand the tax base, and reduce fraud, all of which will impact cross-border investors through enhanced scrutiny and potential legislative changes Ministère de l’Économie, des Finances et de la Prospective.
Looking ahead, Burkina Faso is expected to further harmonize its tax rules with WAEMU and OECD standards, including the implementation of anti-abuse provisions and digital taxation measures. International investors should anticipate increased reporting obligations and more robust enforcement as the government prioritizes domestic resource mobilization and compliance in the coming years.
Tax Compliance: Reporting Obligations and Enforcement Trends
Tax compliance in Burkina Faso is governed by an evolving legal framework, primarily established through the General Tax Code and annual Finance Laws. For the 2025 fiscal year, these laws lay out comprehensive reporting obligations for individuals and enterprises, reflecting the country’s ongoing tax reforms and alignment with regional standards set by the West African Economic and Monetary Union (WAEMU).
- Reporting Obligations: All resident entities and individuals engaged in economic activity in Burkina Faso must register with the tax authorities and obtain a taxpayer identification number. Corporate taxpayers are required to submit annual tax returns, generally by April 30th following the tax year, detailing income, expenses, and taxes due. Value Added Tax (VAT) registrants must file monthly VAT returns by the 20th of the following month. Employers are also obligated to withhold and remit personal income tax (Impôt Unique sur les Traitements et Salaires, or IUTS) on behalf of employees, submitting monthly statements to the tax administration. These requirements are stipulated in the Direction Générale des Impôts’ official guidance.
- Electronic Filing Initiatives: In recent years, the tax administration has accelerated digitalization to improve compliance. The Direction Générale des Impôts has deployed electronic filing portals for VAT, corporate tax, and other taxes, aiming to reduce errors and administrative burdens. By 2025, the government continues to invest in these platforms, with a growing proportion of medium and large taxpayers mandated to file and pay taxes electronically.
- Enforcement Trends: The authorities have stepped up enforcement, conducting targeted audits and leveraging third-party data to detect underreporting and non-compliance. The deployment of risk-based audit selection has become more systematic, as noted in annual performance reports by the Direction Générale des Impôts. Penalties for late filing, underpayment, and non-compliance remain significant, in line with the General Tax Code.
- Key Statistics: In 2023, tax revenue was reported to account for 15.7% of GDP, with a government target to increase this ratio to over 17% by 2025 through enhanced compliance and enforcement measures (Direction Générale des Impôts).
- Outlook for 2025 and Beyond: Looking forward, Burkina Faso is expected to continue tightening compliance requirements and investing in digital infrastructure. With ongoing support from regional bodies and international development partners, the government’s strategy focuses on broadening the tax base and improving efficiency, both to enhance revenue mobilization and to foster a more transparent business environment.
Key Statistics: Revenue Collection and Taxpayer Data (2023–2025)
Tax revenue is a cornerstone of Burkina Faso’s public finance strategy, with the government striving to improve collection efficiency and expand the tax base amid ongoing socio-economic challenges. According to the Direction Générale des Impôts (DGI), total tax revenues for Burkina Faso reached approximately 1,300 billion CFA francs in 2023, marking a 7.5% increase compared to 2022. This growth is attributed to enhanced digitalization of tax services and intensified compliance campaigns targeting both individuals and enterprises.
The number of registered taxpayers has shown steady growth. As of late 2023, Burkina Faso had over 320,000 registered taxpayers, with enterprises accounting for about 20% of the total and individuals, including self-employed professionals, representing the remainder (Direction Générale des Impôts). The adoption of the “e-Impôt” digital platform has facilitated taxpayer registration, online filing, and payment, contributing significantly to improved compliance rates.
Value Added Tax (VAT) and corporate income tax are the principal sources of tax revenue. In 2023, VAT collections accounted for nearly 45% of total tax revenue, while corporate income tax represented around 22%. The mining sector remains a significant contributor, with extractive industries subject to specific tax regimes under the 2015 Mining Code (Ministère de l’Economie, des Finances et de la Prospective).
The tax-to-GDP ratio in Burkina Faso stood at approximately 15.8% in 2023, slightly below the West African Economic and Monetary Union (WAEMU) target of 20%. This underscores the government’s ongoing efforts to broaden the tax base and reduce informality in the economy (Ministère de l’Economie, des Finances et de la Prospective).
Looking ahead to 2025, the DGI has set ambitious targets: boosting revenue collection to 1,450 billion CFA francs and increasing the taxpayer register to over 350,000. These goals are underpinned by ongoing reforms, such as the expansion of electronic tax services, strengthened audit and enforcement mechanisms, and targeted outreach to sectors with historically low compliance.
In summary, Burkina Faso’s recent tax statistics reflect both progress and persistent challenges. While revenue and compliance rates are rising, further reforms are necessary to meet regional benchmarks and finance critical development objectives in the coming years.
Future Outlook: Predicted Reforms and Their Business Impact (2025–2030)
Looking toward 2025 and beyond, Burkina Faso’s tax law landscape is poised for significant evolution, with both domestic pressures and international obligations shaping forthcoming reforms. The government, under its commitment to bolster public revenue and ensure fiscal sustainability, has signaled intentions to modernize its tax framework and improve compliance.
A key driver of anticipated reforms is the ongoing digitalization strategy led by the Direction Générale des Impôts (DGI). Since 2023, the DGI has accelerated the rollout of electronic tax filing and payment systems, aiming to reduce administrative burdens and combat tax evasion. By 2025, further enhancements are expected, including expanded digital platforms for VAT, corporate income tax, and personal income tax declarations. These efforts are projected to increase compliance rates, which, according to the DGI’s latest data, hovered around 60% for major taxpayers in 2023.
Another anticipated reform involves the harmonization of tax rates and bases in line with West African Economic and Monetary Union (WAEMU) directives. The Ministère de l’Economie, des Finances et de la Prospective has indicated that Burkina Faso will align its VAT structure more closely with WAEMU’s minimum thresholds and implement stricter transfer pricing regulations to curb profit shifting by multinational enterprises. The business community should expect enhanced documentation requirements and increased scrutiny of cross-border transactions.
The government is also considering introducing new incentives to attract foreign direct investment (FDI), particularly in sectors such as renewable energy, agribusiness, and mining. Potential reforms include targeted tax holidays and accelerated depreciation for priority industries, as outlined in the 2024–2028 National Development Plan. However, these incentives are likely to be balanced with measures to broaden the tax base and improve revenue mobilization, as Burkina Faso seeks to raise its tax-to-GDP ratio, currently estimated at around 16%, closer to the WAEMU target of 20% by 2030.
- Widespread digitalization will streamline compliance but require businesses to invest in IT systems and staff training.
- Alignment with regional tax standards may raise compliance costs, especially for companies with cross-border operations.
- Greater enforcement and transparency will likely reduce informality but could increase regulatory burdens in the short term.
In summary, businesses operating in Burkina Faso should prepare for a more digital, transparent, and regionally harmonized tax environment by 2030, with a strong emphasis on compliance and documentation. Monitoring updates from the Direction Générale des Impôts and the Ministère de l’Economie, des Finances et de la Prospective will be essential for proactive adaptation.
Official Resources & Guidance: Ministry of Economy and Finance, Burkina Faso
The Ministry of Economy, Finance and Prospective (Ministère de l’Economie, des Finances et de la Prospective) serves as the principal authority for tax policy, administration, and compliance in Burkina Faso. Through its Directorate General of Taxes (Direction Générale des Impôts, DGI), the Ministry oversees the development and enforcement of tax legislation, publishes official tax guidance, and administers the country’s tax collection systems.
- Legislative Framework: Burkina Faso’s tax law is grounded in the General Tax Code (Code Général des Impôts), which is updated annually via the Finance Law (Loi de Finances). The 2024 and 2025 Finance Laws introduced key updates to corporate and personal income tax rates, VAT exemptions, and digital tax administration measures. The Ministry issues official bulletins and circulars interpreting these amendments, available through its online portal (Direction Générale des Impôts).
- Official Guidance & Compliance: The DGI provides comprehensive tax guides, filing instructions, and downloadable forms for individual and corporate taxpayers. In recent years, the Ministry has promoted electronic filing platforms and supports capacity-building seminars for tax professionals and businesses. Compliance deadlines, payment procedures, and audit protocols are regularly updated online, and the DGI maintains a searchable FAQ and helpline (Direction Générale des Impôts).
- Key Statistics: According to the Ministry’s annual reports, tax revenue collection improved by over 10% between 2022 and 2024, driven by enhanced compliance and digitalization. The VAT remains the largest source of tax revenue, with ongoing efforts to broaden the tax base and reduce informality. The DGI’s statistics dashboard provides up-to-date figures on tax collections, sectoral contributions, and compliance rates (Ministère de l’Economie, des Finances et de la Prospective).
- Outlook for 2025 and Beyond: The Ministry’s strategic plan for 2025–2027 includes further digitalization of tax services, simplification of tax procedures, and targeted taxpayer education campaigns. Upcoming reforms are expected to focus on transfer pricing regulations, combating illicit financial flows, and aligning domestic law with regional WAEMU and ECOWAS standards. Official updates will continue to be published on the Ministry and DGI websites (Ministère de l’Economie, des Finances et de la Prospective).
