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Burkina Faso Salary Calculator 2023/24
Calculate your take home pay in Burkina Faso (that's your salary after tax), with the Burkina Faso Salary Calculator. A quick and efficient way to compare salaries in Burkina Faso, review income tax deductions for income in Burkina Faso and estimate your tax returns for your Salary in Burkina Faso. The Burkina Faso Tax Calculator is a diverse tool and we may refer to it as the Burkina Faso wage calculator, salary calculator or Burkina Faso salary after tax calculator, it is however the same calculator, there are simply so many features and uses of the tool (Burkina Faso income tax calculator, there is another!) that we refer to the calculator functionally rather than by a specific name, we mention this here to avoid any confusion.
Taxation in Burkina Faso
Burkina Faso is an African nation, landlocked and surrounded by 6 other nations. With an estimated population of over 20 million, the country's economy is primarily based on subsistence farming and livestock rising. Over 80% of its population relies on subsistence agriculture.
Ministry of Economy and Finance - Burkina Faso
In Burkina Faso, the Ministry of Economy and Finance oversees administration of tax collection under colonization. It also handles the country's economic, finance and budgetary policies along with regulation of economic activity. The Ministry of Economy and finance has some 3500 public officials throughout the country. The regional directors working for the department exercise jurisdiction over three or four provinces on average.
Burkina Faso provides an online portal for The Ministry of Economy and Finance.
Contribution to direct taxes is relatively low in Burkina Faso. There are several groups of direct and indirect taxes levied on individuals and corporate. This includes VAT, social security, and custom & excise duty. Let's have a look at these taxes in detail:
Personal Income tax
The tax year in Burkina Faso runs from December to December. Annual tax returns should be filed by 30th April of the subsequent year. Income tax brackets for citizens and expats are slightly different. Citizens pay tax up to 25% on any earned income, whereas expatriates pay income tax up to 27.5% on earned income.
Individual taxes for citizens
Citizens of Burkina Faso are taxed using income tax brackets, any individual earning income more than ₣ 360,000.00 should be registered as a taxpayer and file income tax returns. Burkina Faso follows progressing tax system for all taxable income types, the latest personal income tax rates for Burkina Faso residents is available here.
Tax rate for expatriates
Expatriates (Expats) working in Burkina Faso pay income tax up to 27.5%. The latest personal income tax rates for Burkina Faso Expats is available here.
Expatriates are also subject to tax on income from real estate between 18% and 25%, depending on the value of the property.
Tax deduction and Credits
Several deductions are available to taxpayers such as family allowance and transport allowance, also civil and military pensions and severance pay are offered by the administration.
Tax Treaties
Burkina Faso has tax treaties with France, Tunisia and West African Economic and Monetary Union. This is primarily to avoid double taxation of taxpayers.
Income tax for non-commercial professions
Professions considered as non-commercial include:
- Professional civil companies
- Liberal professions - These professions cover essential skills in the liberal arts of sciences which cannot be delegated to assistants. These professions include: Lawyers, doctors, engineers and accountants amongst others.
Taxable professions for this category of tax, (that is earned from sources other than professions mentioned above) are:
- Non-wage income of athletes
- Income from copyright products
- Income received by event organizers
The tax rates applicable for non-commercial professions are inline with the latest personal income tax rates for Burkina Faso non-residents which is available here.
Like a tax on agricultural and commercial profiles, this tax regime also neglects income less than ₣ 1,000.00 and offers a 30% tax discount for adherents of approved management centers.
Corporate tax
The standard rate of corporation tax for companies registered in Burkina Faso is 27.5%, this applies to all profits. A resident company is subject to tax on income from movable capital on a worldwide basis. All other types of taxable income are taxed at source. Nonresidents are charged taxes only on income source based in Burkina Faso.
An entity is considered tax residents upon incorporation in Burkina Faso. The branches of foreign companies are subject to an additional branch withholding tax of 12.5% on the tax base of 75% of the branch's income.
Taxable products
Taxable products include:
- Sales and revenues.
- Income from investments.
- Income from rented properties.
- Gains on disposal income of fixed assets.
- Miscellaneous or extraordinary income.
Tax exemptions
The following are exempt from corporate tax:
- Noncommercial public institutes by state of local authorities.
- Agriculture credit unions that are operating in line with legal provisions.
- Central Bank of West African States.
- Agriculture associations of general interest.
- Professional civil companies.
- Nonprofit organizations.
In Addition to these new companies enjoy exemption of minimum fee for the first year of operation.
Capital gains tax
Capital gains on disposal of fixed assets and shares are included in taxable income. However, only 50% of the income is considered in the calculation and can be calculated using the Burkina Faso Capital Gains Tax Calculator. Capital gains from mergers and contribution of assets are exempt from corporate tax.
Other corporate taxes
Other corporate taxes include:
- Withholding taxes.
- Dividends start at the rate of 12.5%.
- Interest on bonds at the rate of 6% interest on debt instruments at 25%.
- Services in the mining industry at 5% for residents and 10% for nonresidents.
- Stamp duties (according to the type of document).
- Business transfer tax at 10%.
- A business license duty.
- A real property tax at 0.1% of the taxable amount.
Tax incentives for small businesses and industries
Small industries and new small business are exempt from business tax in the first two years of the operation. This is effective from the start of their activity that is duly noted by the tax authorities.
Small businesses adhering to approved management centers can also enjoy these tax benefits:
- A reduction of 50% on fixed minimum charge.
- A 30% reduction on tax on profits.
- A reduction of 20% on the employer and learning tax.
Consumption taxes
Consumption taxes in Burkina Faso are mainly collected in two different ways:
Value Added Tax (VAT)
VAT applies to businesses at a standard rate of 18% and can be calculated online using the Burkina Faso VAT Calculator. Companies subject to VAT in Burkina Faso and details of VAT exemptions are available in the latest Burkina FASO tax tables These businesses include:
Custom and Excise duty
All goods imported to Burkina Faso and generally subject to custom duties. Custom duties are also set as at the standard rate of 18%. Special duties are levied on:
- Tobacco.
- Cosmetics products.
- Non-biodegradable plastic bags and packaging products.
- Beverages.
- Petroleum products.
- Coffee and tea.
- Airline tickets.
- Passenger vehicles that are equal to or greater than 13 horsepower is also subject to special duties.
Tax on agriculture, industrial and commercial profiles
This tax is levied on individuals that:
- Buy shares of real estate companies in order to sell them.
- Buy buildings or businesses for reselling purposes.
- Provide intermediary services to the above-mentioned people for the sale and purchase of properties.
- Contractors, dealers and Farmers.
- Founder of Educational institutions.
- Renters of furnished apartments.
- Individuals who engage in any commercial, business or industrial operations.
The tax rates applicable for agriculture, industrial and commercial profiles are inline with the latest personal income tax rates for Burkina Faso non-residents which is available here.
Taxable income of less than ₣ 1,000.00 is neglected. Additionally, adherents of approved management centers enjoy a 30% discount on income tax.
Taxable products
Taxable products are:
- Sales and revenues.
- Financial income and gross income on investments.
- Miscellaneous income.
- Rental income from developed or undeveloped properties.
- Gains on disposal of fixed assets.
- The bonus on recovery and disposal of packaging that includes: the work done by the company itself, work in progress value in cost, reversal and expense transfers.
Payroll tax, and learning
Payroll tax or employer tax is paid by any person or organizations that pay salaries, allowances, emoluments and benefits of other kinds.
Tax rate base is set at the standard 4% of gross salary. Adherents of approved management centers enjoy a 20% discount on amounts of emoluments and benefits.
Exemptions
- Diplomatic missions, international and inter-organizations.
- Private education and health care businesses.
- Noncommercial state/local government and public institutions.
- NGOs.
- Agriculture credit unions that are operating in line with legal provisions.
Social security
Employers must contribute to social security at the rate of 16% of their employee's gross salaries.