Burundi's 2013 income tax law reform moved the country from a purely territorial system to a hybrid residence and source basis: resident individuals and companies are taxed on worldwide income, while non-residents are taxed only on Burundi-source income and profits attributable to a Burundi permanent establishment, administered by the Office Burundais des Recettes (OBR).
The tax year is the calendar year for most taxpayers, with annual corporate tax returns and payment obligations administered by the OBR; a minimum tax of 1% of turnover applies where a company reports a loss.
30% standard rate (1% of turnover minimum if the company reports a loss).
Progressive: 0% up to BIF 1,800,000; 20% from BIF 1,800,001-3,600,000; 30% above BIF 3,600,000; flat 15% for non-residents.
18% standard VAT.
An individual is resident if they have their habitual abode in Burundi or are present for more than 183 days. A 2013 income tax law reform moved Burundi from a purely territorial (source-only) system to a hybrid residence/source basis: resident individuals and companies are now taxed on worldwide income, while non-residents remain taxed only on Burundi-source income and profits attributable to a Burundi permanent establishment.
A foreign company is subject to Burundian corporate tax on profits attributable to a permanent establishment maintained in Burundi, understood as a fixed place of business or a dependent agent conducting business in the country on the foreign company's behalf, consistent with the residence and source-based structure introduced by the 2013 reform.
Burundi has no CFC regime. It specifically proposes introducing a CFC rule as a future reform - taxing passive profits accumulated by Burundian residents in foreign low-tax subsidiaries at the local rate - as a measure Burundi does not currently have, precisely to prevent a Burundian resident from artificially parking profits in a tax haven while claiming no current Burundian tax applies. This is a direct, on-point confirmation that no such mechanism exists in current Burundian law. Burundi's Office Burundais des Recettes (OBR) administers a foreign tax credit under Article 14 of the tax code for foreign-source income already taxed abroad, but this is unrelated to CFC-style attribution.
Interest expenses paid to related entities are non-deductible where the debt-to-equity ratio exceeds 30%.
Burundi classifies entities according to its own domestic legal and tax code rather than offering an elective check-the-box system, and no ATAD2-style anti-hybrid mismatch regime addressing double-deduction or deduction-without-inclusion outcomes has been identified in Burundian tax law.
No domestic FBAR-equivalent regime requires Burundian residents to separately disclose foreign financial accounts, and Burundi is not currently a CRS participating jurisdiction, so it does not automatically exchange financial account information with foreign tax authorities under the OECD's Common Reporting Standard. US persons remain independently subject to FinCEN Form 114 (FBAR) and potentially Form 8938 regardless of Burundi's own rules.
No general participation exemption regime for dividends or capital gains from a qualifying subsidiary is identified in Burundian tax law; confirm current treatment of intercompany dividends directly with the Office Burundais des Recettes.
The Office Burundais des Recettes administers a foreign tax credit under Article 14 of the tax code for foreign-source income that has already been taxed abroad, distinct from and unrelated to any CFC-style attribution mechanism (Burundi has no CFC regime).
Burundi has very limited treaty coverage. Where treaties do exist, they generally follow OECD Model Tax Convention logic - dual-residence tie-breaker rules (permanent home, center of vital interests, habitual abode, nationality) and tax credit mechanisms to prevent double taxation. A comprehensive named-partner list is not available in accessible current sources. Separately, Burundi's Free Trade Zone regime offers a 0% corporate tax holiday for 10 years on qualifying non-resident-source profits, reverting to a 15% rate afterward.