BURKINA FASO Law and Practice Contributed by: Bobson Coulibaly, Pierre Yanogo, Oumarou Cisse and Diana Woba, SCP Yanogo Bobson
5.4 Tax Consolidation Tax consolidation is not available in Burkina Faso as there is no legislation for group taxation under Burkinabé tax law. However, in terms of transfer pricing control, companies belonging to a group of companies and meeting the criteria in Article 99 of the GTC have to provide documentation. This includes the financial and tax situation of the multination - al enterprise group, which includes the annual consolidated financial statements of the multina - tional enterprise group for the fiscal year in ques - tion, if they are otherwise prepared for financial reporting, regulatory, internal management, tax or other purposes. 5.5 Thin Capitalisation Rules and Other Limitations Burkina Faso has not introduced any specific rules limiting the deductibility of interest paid to holding companies for corporation tax purposes. However, Article 66 of the GTC provides that for the purposes of calculating corporation tax pay - able by companies who are dependent on or control companies operating inside or outside Burkina Faso, profits indirectly transferred to companies operating inside or outside Burkina Faso, either by increasing or decreasing pur - chase or selling prices or by any other means, are incorporated into the account results. 5.6 Transfer Pricing Companies in Burkina Faso are subject to docu - mentary and reporting requirements relating to transfer pricing. These are as follows. • Documentation justifying transfer prices (Arti - cle 99 of the GTC). Each affiliated entity has to provide the tax authorities with documen - tation justifying the pricing policy applied in
transactions of all kinds with affiliated compa - nies operating inside or outside Burkina Faso. • An annual transfer pricing declaration for companies subject to tax (Article 98-1 of the GTC). • A prior agreement on transfer prices. Com - panies operating in Burkina Faso may apply to the tax authorities for a prior agreement on the method of determining the prices of future transactions with one or more companies with which they are dependent or control for a period not exceeding four years (Article 588-1 of the GTC). 5.7 Anti-Evasion Rules In order to tackle tax evasion, Burkina Faso has taken measures governed by Article 96-1 of the GTC and the decree of 31 May 2022 on the obligation to declare and keep a register of beneficial owners of legal persons and legal arrangements. These impose an obligation on companies to keep a register of beneficial own - ers and an obligation on companies to declare their beneficial owners to the tax authorities and the commercial court. 5.8 Tariffs The current tariff regime in Burkina Faso is structured around the community customs regulations of the West African Economic and Monetary Union (WAEMU), commonly known as the Common External Tariff (CET) of 24 June 2022 and Law 003-2025/ALT of 24 March 2025, establishing the Burkina Faso Customs Code. Under the WAEMU Regulation, the highest cus - toms duties are 35% and apply to goods falling under Category IV. They are applied to imported finished consumer products and specific luxury goods, particularly those that compete directly with local production, such as processed agricul - ture, food products, textiles and ready-to-wear
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