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13.5. Other Anti-Avoidance Rules

Preferential Tax Regimes

Payments made by resident companies to persons resident in preferential tax jurisdictions are allowed as a deduction only if documentary proof corresponding to the actual transactions is submitted. A person is considered to be resident in a country with a preferential tax regime if it is not taxable in that country or it is subject to tax on profits or income (until 31 December 2019, on corporate tax) not exceeding half of the tax that would be payable in Burkina Faso.

Non-Cooperative Jurisdictions

Any payments made to companies’ resident in non-cooperative jurisdictions are not deductible for tax purposes. Any jurisdiction that does not comply with international standards for transparency and exchange of information is considered as a non-cooperative jurisdiction.

Ultimate Beneficial Ownership Disclosure

Effective 1 January 2022, all companies are required to maintain a register of their beneficial owners and submit a declaration on the identity of beneficial owners within the due date for the annual tax return (i.e., 30 April or 31 May as applicable). The register must be kept up to date with all the changes occurring in the ownership of the legal person and must be presented at the request of the relevant authorities.

The beneficial owner of a legal person means the natural person identified as such within the meaning of the ‘Law No. 016-2016/AN of 3 May 2016’ relating to the fight against money laundering and the financing of terrorism in Burkina Faso. Accordingly, the term’ beneficial owner’ includes a natural person who ultimately owns or controls a customer or the account of the person on whose behalf a transaction is conducted, or the person who exercises ultimate, actual control over a legal entity or its management.