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Burundi Salary Calculator 2023/24
Welcome to the Burundi Salary and Tax section of iCalculator. In this section we provide detailed tax guides, tax calculators and salary calculators for Burundi.
On this page you can access:
- An introduction to the tax system in Burundi
- Income Tax calculator for Burundi
- A list of tax calculators and tools we provide for Burundi
Burundi Income Tax Calculator
Calculate your income tax deductions and take home pay in Burundi (that's your salary after tax), with the Burundi Salary Calculator. A quick and efficient way to compare salaries in Burundi, review income tax deductions for income in Burundi and estimate your tax returns for your Salary in Burundi. The Burundi Tax Calculator is a diverse tool and we may refer to it as the Burundi wage calculator, salary calculator or Burundi salary after tax calculator, it is however the same calculator, there are simply so many features and uses of the tool (Burundi income tax calculator, there is another!) that we refer to the calculator functionally rather than by a specific name, we mention this here to avoid any confusion.
Taxation in Burundi
Burundi is an East African country, landlocked by Rwanda, Tanzania & Democratic Republic of Congo. Burundi is densely populated with its people depending heavily on subsistence farming.
Tax Administration & Compliance
Tax is administered by the Burundi Revenue Authority. The administration is handled by the Burundian Office of Recipes (OBR). Established on the 14th of July 2009, OBR is responsible for collecting taxes, duties, and customs duties and to comply with all other responsibilities relating to the taxes.
The website for OBR can be accessed with this link: https://www.obr.bi/
Tax filing requirements are different for individuals and corporate. This can be understood better with the table below:
| Compliance requirement | Individuals | Corporate |
|---|---|---|
| Tax Year | Calendar year, however different 12-month period is allowed upon requests | Calendar year, however different 12 month period is allowed upon requests |
| Filing and Payments | No filing requirement if tax is subjected to PAYE mechanism | Self-assessment regime applies, to be filed and paid not later than 3 months after the end of the tax year. |
| Advance tax | Not allowed | Allowed |
| Penalties | Upon failure to comply, penalties, fines and interest are applied | Interest on late payments, and interest & fines on tax understatements |
| Others | A Tax Identification number (TIN) is mandatory. | A legal person must have A Tax Identification number (TIN) |
Burundi has maintained income tax system for over 50 years. There have been reforms and changes ever since. Taxation in Burundi is rather simple currently.
Basis of Tax
Income tax is applicable to revenue generated by both individual and corporate within the territory of Burundi. This is irrespective of residents and non-residents.
Personal Income Tax (PIT)
The tax brackets for both residents and non-residents are the same. However, residents are taxed on worldwide income and non-residents are taxed on source-based income. This includes the professional activities carried out in Burundi.
An individual is taxed on:
- Employment income
- Business or professional income
- Investment income
- Dividends
- Interests
- Royalties
- Capital gain - Only on capital gains by sale or lease of commercial immovable properties
2023 Personal Income Tax Rates
You can view the latest tax rates and tax brackets for residents and non-residents in 2023 here.
Corporate Income Tax (CIT)
Similar to individual income tax, corporate taxes apply to a company's income generated in Burundi, regardless of residence.
Basis of Tax for Corporations
Residence companies are taxed on worldwide income and non-resident companies are normally taxed only on Burundi source based income.
2023 Corporate Taxable income
Any income generated by business operations is considered taxable as per corporation tax laws. Also, business investment income that includes capital gains derived from the sale of an asset are considered taxable at a different rate.
Corporate Tax Rates
Indirect Taxes in Burundu
Value added tax (VAT)
VAT is filed and paid on a monthly basis by the 15th day of the following month. VAT is levied on a standard rate of 18%. Imported foodstuff, processed agricultural products, and agriculture inputs are charged at 10% flat. Exports are exempted from VAT.
VAT is imposed on imports, sale of goods and provision of services with the exception of telecommunication. Reduced tax rates applied to some imports. Registration threshold for VAT is BIF100,000,000.00.
Custom and Excise duties
Excise duties are levied only on some of the local productions and imported products. Locally manufactured products are taxed on the sales price exclusive of taxes, whereas imported goods are taxed on the cost, insurance and Freight (CIF) charges.
Other taxes
- There are no taxes collected on: Stamp duties, Net wealth, inheritances and donations.
- Tax on real property is paid to the municipal authorities, calculated on the basis of location and utilization of property.
- Fees are charged on transfer of assets.
- A special contribution of 5% of profit before tax applies to financial institutions.
Employment related taxes
Payroll tax
A payroll tax is withheld by the employer. The employers are personally responsible to declare, withhold, and pay taxes as per PAYE system directly to Burundi Revenue Authority. This should be done on a monthly basis within 15 days of the following month.
Payroll tax at the rate of 30% is withheld where the employer is not the principal employer and in case of casual labour, tax at the rate of 15% is withheld by the employers. Employers are obliged to conduct proper bookkeeping of tax payment.
Social Security
A total contribution of 10% is required against social security for stardard employees, where the employee is involved in arduous work, this rises to 14.6%. Social security consists of 6% by the employer and 4% by the employee. This is capped at BIF450,000.00 per month which is BIF5,400,000.00 per annum.
Tax Incentives
The Burundi government offers tax incentives to promote foreign investments. Registered investment entities that operate in a free trade zone (FTZ) and foreign companies that have their headquarters in Burundi and comply with investment incentives laws are entitled to these incentives. The incentives are:
- Exemption from corporate income tax for the first 10 years and 15% from the 11th year of operation.
- A 10% of corporate income tax if the investor employs more than 100 Burundians.
- Tax-free repatriation of profits.
- Tax exemption on dividends.
- Exemption of transfer tax on the sale purchase of buildings.