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6.5. Deduction of Cross-Border Payments and Non-Deductible Expenses

Expenses incurred for the purpose of business are deductible unless they are specifically disallowed. The following general expense types are not deductible or have limited deductibility for tax purposes in Burundi:

  • Personal expenses
  • CIT and recoverable VAT
  • Fines and penalties
  • Depreciation on revaluation and its related expenses
  • 20% of expenses out of business expenses such as telephone, electricity and fuel which cannot be bifurcated into business and non-business use
  • Representation expenses e.g. cost of a reception or a ceremony, business gifts, payments for tickets for shows or private travel and the cost of business meals & drinks exceeding 1% of turnover up to a limit of BIF 5 million
  • Head office overhead