Tax Focus

Burkina Faso

By:
Jean-Louis Dattie,
Charles-Alexandre Koffi
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The 2022 fiscal year began in Burkina Faso with the promulgation by Decree No. 2021-1352/PRES of Law No. 042-2021-AN of December 16, 2021, on the Finance Law for the execution of the State budget, Fiscal Year 2022.
Contents

Among the innovations of this Finance Act 2022, various measures to strengthen the fight against money laundering and terrorist financing in Burkina Faso have been adopted. These measures concern, among other things, the rules related to the determination of transfer prices and the declaration of beneficial owners of Burkina Faso companies. From now, companies established in Burkina Faso must keep a register of their beneficial owners regardless of their form and activities.

A beneficial owner is defined as the person or persons who ultimately own or control a customer and/or the individual on whose behalf a transaction is carried out. The definition also includes persons who ultimately exercise effective control over a legal person. The register must be kept up to date with all changes in the beneficial ownership of the legal entity and presented to the Administration at any time.

In addition to this register, companies are also required to file, in support of their declaration of existence, a declaration of beneficial owners using a form provided by the tax authorities. Pre-existing companies and those created after January 1, 2022, will be required to file the declaration of beneficial owners simultaneously with the corporate income tax return.

In terms of transfer pricing, related companies whose annual turnover excluding taxes or gross assets is greater than or equal to 1,000,000,000 FCFA (1,524,000 €) are required to submit, by May 31 at the latest, the annual transfer pricing declaration for the accounting period ended December 31 of the previous year.

This declaration is made on a form in accordance with the model of the Tax Administration.