Burkina Faso investment income and IRCM withholding

General reference only. This skill is general tax/accounting reference material for AI-assisted workflows. It has not been reviewed for any specific person's facts, documents, elections, deadlines, residency, filing status, or local procedures. Do not rely on it to file, pay, amend, or take a tax position without review by a qualified professional in the relevant jurisdiction.

Who this applies to

This covers selected 2026 IRCM jobs for an individual recipient and the company, bank or other person responsible for payment, withholding or reporting. Classify the instrument before choosing a rate or remittance date. It is not the tax on selling an investment or an individual's complete income/residence return.

Receivables. CGI art. 129 covers interest, arrears and other products of mortgage, preferred and unsecured receivables, deposits regardless of depository or use, cash guarantees, current accounts and bons de caisse. It excludes borrowing represented by obligations, public instruments and other loans falling under art. 132(6). That latter provision covers borrowings of the listed public bodies and Burkina-seated companies, even without instruments or negotiable bonds. A shareholder loan to a company therefore requires this classification; do not automatically treat every private company loan as an ordinary receivable. CGI arts. 129, 132(6).

Securities and distributions. Arts. 131–132 cover distributions by entities subject to Burkina IS, including IS-exempt entities; dividends and other equity products of Burkina-seated entities; capital repayments or amortisations before dissolution/liquidation; the listed issuers' redemption premiums; general-administrator/board office allowances, flat expense reimbursements and other remuneration; and shareholders' remuneration on general meetings. They also cover the listed IS entities' advances, loans or instalments made available to associates directly or through interposed persons/entities, and the remuneration or advantages in art. 132(9). The director exception below must be proved rather than presumed. CGI arts. 131–132.

Rates, bands and thresholds

Apply these domestic rates only after checking classification, exemption and any applicable double-tax convention. The new-company rate does not halve every interest payment.

Income and conditions	Domestic rate or boundary	Official source
Art. 129 receivables and other income without a specific rate	25%	CGI art. 140(1)
Art. 129 deposit/current-account products in the books of a bank, financial institution, agent de change, securities broker, Treasury or agricultural credit fund	Half the preceding rate: 12.5%; not all loans or all cash guarantees	CGI art. 140(1)
Interest, arrears and other products of obligations issued in Burkina Faso	6%; first exclude exempt public-debt products	CGI arts. 134(5), 140(2)
Other securities products	12.5%, subject to art. 141	CGI art. 140(2)
Newly constituted enterprise distributing share, interest-part or commandite products for its first three social periods following constitution	Half ordinary rate: 6.25%; those periods together cannot exceed 42 months	CGI art. 141, first branch
Share income distributed by a société ou entreprise communautaire	Separate 3% branch, first three social periods and maximum 42 months in total; classification evidence remains held	CGI art. 141, second branch

The base

Computation order. Identify the legal recipient, issuer/debtor, instrument and payment type; check exemptions; establish the statutory amount and tax point; apply the eligible rate; reconcile the tax withheld and the net amount to the statement. For art. 129 products the base is gross interest, arrears and other products. Art. 135 puts the tax exclusively on the creditor despite any contrary contractual clause. It does not authorise an assumed net-of-tax gross-up. CGI arts. 129, 135, 140.

For securities income, payment need not come out of profits. Art. 137 uses the dividend fixed by the meeting/board documents, the interest or borrowing income distributed in the year, the redemption premium above its issue basis, the board-remuneration decisions or, for other deemed distributions, the elements determined by the administration. Art. 138 supplies special issue-basis rules: a single issue rate; otherwise an issue average; the preceding 31 December position for undetermined variable issues; then the stated twenty-times-annual-interest fallback or an estimated declaration if no interest is stipulated. Do not assume face value is the issue basis. Specialist issue-basis execution remains held. CGI arts. 136–138.

Deemed distributions and repayment. Art. 133 includes profits/products not reserved or capitalised and sums made available to associates outside profits. Its express exceptions are repayments for cancelled securities following capital reductions not motivated by losses, and loan/service/function remuneration deductible for IS. Profits no longer invested are presumed distributed, but the listed stock-value adjustments, excessive depreciation and non-deductible provisions are not disinvestment under that paragraph. These exceptions do not exempt a separately taxable interest payment under another provision. CGI art. 133.

For an associate advance taxed under art. 132(8), reimbursement to the entity strictly less than five years after the money was made available gives restitution of the fraction of the original tax attributable to that reimbursement. A partial repayment does not refund the tax on the unreturned balance. The statute supplies the right; the current claim form, time limit for making the claim and payment process are not verified here. CGI art. 132(8).

Selected exemptions. Retain the supporting account terms, instrument, status and transaction records. The following are conditional exemptions, not labels to add to an ordinary commercial product.

Product or event	Conditions and boundary	Official source
CNE savings books and legally regulated housing-savings accounts	Interest on the specified products; not every savings account	CGI art. 130(1)
SONAPOST fixed-term deposits	Interest generated by those deposits	CGI art. 130(2)
Business current accounts under art. 130(3)	Both parties have a listed industrial, commercial, agricultural, mining or quarry capacity; account operations relate exclusively to both businesses; products are taxed under Burkina IBICA or IS	CGI art. 130(3)
State/local-authority rentes, bonds and other public instruments	Their interest, arrears and other products; examine issuer and legal instrument before using the bond rate	CGI art. 134(5)
Reserve distribution through capital increase; profits directly capitalised	Art. 134(6) applies. If following a non-loss capital reduction or tax-free direct repayment less than five years earlier, the resulting capital increase must exceed capital repaid	CGI art. 134(6)
Actual management work paid to a director/general administrator	Non-excessive for the service; exemption for only one named administrator. For an employee appointed to the board who continues the pre-existing salaried job, art. 132(4) applies only to receipts in administrator capacity	CGI art. 134(11)
Qualifying corporate redistribution	Burkina-seated SA/SAS/SARL receives qualifying dividends from a Burkina-seated subsidiary and redistributes. Exemption capped at that period's received products net of IRCM; registered holding at least 20%; subscribed/allotted at issue and continuously in company name, or held in registered form for at least two consecutive years. The fusion carryover also applies	CGI art. 134(12)

Capitalisation is not an unconditional permanent exemption. Art. 134(6) withdraws it for the amount repaid where, within five years afterwards, the distributions are followed by a capital reduction motivated by losses, or a transaction involving tax-free direct/indirect capital repayment. The printed provision expressly uses that loss-motivated wording. Duties fall due by the 20th of the month following the event quarter, under art. 765 sanctions. Obtain local advice on the actual restructuring; do not substitute the opposite wording. Other specialised exemptions in arts. 130 and 134 are not cleared by this selected table. CGI art. 134(6).

Deadlines and filing

First establish the tax point. Payment in any manner and interest entry on the debit or credit side of an account trigger the liability. For dividends, payment is deemed within a maximum nine months after period close, subject to an extension granted by the competent court under the OHADA provision cited in art. 139. Keep the payment, posting, close and court-order evidence. Do not postpone tax indefinitely because cash has not moved. CGI art. 139.

1. Bank/financial-institution debt route. Withhold on taxable interest/products paid or posted. Maintain the special statement with account-holder identity and number, taxable interest and entry date. At each civil quarter end establish the tax; submit the certified bordereau showing total taxable sums and tax to the competent tax receiver by the 20th of the following month and pay immediately. A commercial person opening such product accounts needs DGI authorisation to use arts. 144–145; quarterly treatment is not a unilateral election. CGI arts. 142–146.
2. Other art. 147 persons. A natural/legal person outside the art. 144 group, with seat or PE in Burkina, that pays or receives taxable interest must withhold and pay on an administration-model declaration at its assigned receiver. File and pay before 30 April following the period-close year; attach the total taxable interest/products paid or received. This does not override arts. 144–146. Preserve the distinction between this printed before deadline and art. 148's no later than deadline. CGI art. 147.
3. Interest from non-established entities or private individuals. Under art. 148 the beneficiary pays at the domicile tax service no later than 30 April following the year received. Declare the claim's origin, instruments and their dates/registration/judgment, interest/products received, tax, applicable periods and unpaid interest where relevant. If interest was paid in a notary's office, that notary files in the creditor's name within the same period. This is not a general foreign-dividend return rule. CGI art. 148.
4. Unpaid-interest debts. On total/partial debt repayment or release of its security, art. 149 requires corresponding tax on unpaid interest arrears. Its exceptions are judicially established debt reductions and repayments by distribution or amicable/judicial contribution. If the interest payer is not personally liable for the tax, art. 150 separately requires a duplicate annual beneficiary name/forename/address/amount statement to the residence tax service by 30 April where the annual amount strictly exceeds XOF 50,000 per beneficiary. That threshold is for the information report, not an interest exemption. CGI arts. 149–150.
5. Dividend company route. Art. 131 companies withhold at source and remit to their assigned tax service. Deposit meeting reports and deliberation extracts within one month of the meeting. After annual close, liquidate and remit dividend tax within thirty days of the dividend being made payable (mise en paiement), read with art. 139's deemed-payment rule. These provisions do not establish a universal monthly 20th deadline for every securities product. CGI arts. 151–153.
6. Directors and capital redemptions. Art. 155's board-office/diverse-remuneration branch requires tax by the 20th of the month following the preceding quarter's distributions. Retain the named, totalled statement certified by legal representatives, showing each board member's amount and domicile/residence (art. 156). Total/partial capital repayments or amortisations instead use the 20th of the month following their mise en paiement; if an exemption application has been lodged, liability is deferred until it is decided. The art. 154 supporting redemption statement gives securities amortised, art. 138 issue basis for premiums, applicable market repurchase price, premiums and taxable amount. A missing general-administrator remittance detail must not be filled by inventing the dividend timetable. CGI arts. 154–156.
7. Intermediary reporting. Art. 610 professional/ancillary securities payers obtain identity and real domicile before payment/account opening, report beneficiary identities and net payments. Coupons are presumed to belong to the presenter unless proved otherwise. For third-party coupons, the presenter can supply a list giving the presenter’s and true owners’ names and real domiciles and each owner’s coupon amount; the payer must annex that list if supplied. Keep supporting records to the end of the fourth year after payment, unless a longer duty applies. Art. 611 covered habitual securities custodians send prescribed account opening/closure notices within the first ten days of the next month and obtain the receipt; they report prior-year credited coupons before 1 February. These are distinct duties from paying IRCM. CGI arts. 610–611.
8. Close the payment record. Use an art. 671 authorised payment route, obtain the statutory quittance and record amount/date/receipt number on the declaration under art. 672. The current declaration IDs, boxes, portal login/upload/acknowledgement and electronic payment-reference sequence were not accessed. Stop at this preparation workpaper until those are verified for the actual route. CGI arts. 671–672.

Penalties and interest

Failure and conditions	Statutory consequence	Official source
Late IRCM payment	10% of due sums plus 1% per month or fraction	CGI art. 765(1)
Inaccuracy/omission prejudicing the Treasury	100% of simple duties due, minimum XOF 25,000	CGI art. 765(2)
Incorrect classification of director remuneration under art. 134(11)	200% of tax evaded	CGI art. 765(3)
Other IRCM contravention	XOF 25,000	CGI art. 765(4)
Art. 610(1)/611 reporting omission or inaccuracy	XOF 20,000 per omission/inaccuracy	CGI art. 766
Breach of art. 610's last-paragraph retention duty	XOF 500,000	CGI art. 766

Match the failure to its provision. These are not permission to aggregate every sanction; cumulation, procedural notices and detailed month-counting are held.

Cross-border points

Art. 140 makes rates subject to double-tax conventions. Residence, beneficial-owner evidence, the convention's current force and the actual relief/refund procedure need separate verification. Art. 148's interest-receipt route above does not prove that all foreign investment income of every individual is subject to the same treatment. The non-resident company's Burkina PE deemed-distribution job in arts. 157–159 remains separate and unfinished. Do not apply its company rules to an individual investor. CGI arts. 140, 148, 157–159.

The IRCM credit against company IS remains in corporate tax, its existing figure home under arts. 93–94. It is not an individual recipient's automatic credit or exemption. Service payments use non-resident services withholding; paying a non-resident does not turn an investment return into a service fee. CGI arts. 93–94.

Two worked examples that recompute

Instrument decision, same gross interest. Assume XOF 1,000,000 gross interest, no exemption or convention relief, and properly established classifications. An ordinary interest-bearing debt owed by a private individual under art. 129 uses 25%: tax XOF 250,000. A qualifying ordinary bank deposit under art. 140(1) uses 12.5%: XOF 125,000. An ordinary non-exempt obligation issued in Burkina uses 6%: XOF 60,000. A State instrument satisfying art. 134(5) is exempt, so its tax is zero. The code below tests classification, not an unverified source or residence assumption.

name: IRCM instrument classification before rate
inputs:
  gross_interest: 1000000
  ordinary_receivable: 1
  qualifying_deposit: 1
  qualifying_local_obligation: 1
  public_instrument_exempt: 1
steps:
  private_debt_tax: gross_interest * 0.25 * ordinary_receivable
  deposit_tax: gross_interest * 0.125 * qualifying_deposit
  obligation_tax: gross_interest * 0.06 * qualifying_local_obligation
  exempt_public_tax: gross_interest * 0.06 * (1 - public_instrument_exempt)
expected:
  private_debt_tax: 250000
  deposit_tax: 125000
  obligation_tax: 60000
  exempt_public_tax: 0

Distribution eligibility and the separate loan-repayment gate. A qualifying new enterprise distributes XOF 2,000,000 equity products for its second social period; the first periods total 24 months, and no other exemption or convention applies. The established eligibility gate selects 6.25%, tax XOF 125,000 and net XOF 1,875,000. If instead the same distribution belongs to its fourth period, the gate fails and ordinary 12.5% gives XOF 250,000. Separately, a properly classified associate advance of XOF 800,000 was taxed at 12.5%. Repayment of XOF 400,000 four years after availability gives a statutory attributable-tax restitution amount of XOF 50,000; at exactly five years the art. 132(8) timing condition is not met. The computed entitlement is not a refund already received, and the dividend reduction is not applied to the advance.

name: IRCM dividend gate and partial advance reimbursement
inputs:
  distribution: 2000000
  within_first_three_periods: 1
  within_42_months: 1
  fourth_period_eligible: 0
  advance: 800000
  advance_repaid: 400000
  repaid_strictly_before_five_years: 1
  repaid_at_five_years_eligible: 0
steps:
  eligible: within_first_three_periods * within_42_months
  selected_rate: 0.125 * (1 - 0.5 * eligible)
  dividend_tax: distribution * selected_rate
  dividend_net: distribution - dividend_tax
  fourth_period_tax: distribution * 0.125 * (1 - 0.5 * fourth_period_eligible)
  original_advance_tax: advance * 0.125
  attributable_restitution: original_advance_tax * advance_repaid / advance * repaid_strictly_before_five_years
  five_year_restitution: original_advance_tax * advance_repaid / advance * repaid_at_five_years_eligible
expected:
  eligible: 1
  selected_rate: 0.0625
  dividend_tax: 125000
  dividend_net: 1875000
  fourth_period_tax: 250000
  original_advance_tax: 100000
  attributable_restitution: 50000
  five_year_restitution: 0

Ask the client first

Obtain investor and beneficial-owner identity, domicile/residence evidence, debtor/issuer identity and seat, instrument and terms, issue country, gross amounts, account postings, payment dates and any net-of-tax clause. For distributions obtain constitution date, all first-period close dates, resolutions, court extensions, capital/loan and repayment histories, and evidence supporting exemptions or community status. Identify the payer's statutory filing route, DGI authorisation, withholding and receipts already issued, current prescribed forms, and any intermediary/custodian duties. For corporate redistribution obtain registered-holding evidence, acquisition/issue dates and net received dividends. Route company IS credits to their existing Guide; stop where a material hold below applies.

Sources

Official source	Actual reading scope	Read on
DGI, official CGI 2026	Complete arts. 129–159 and neighbouring arts. 127–128/160; complete selected exemptions in art. 130/134 read although only the specified branches are operationally drafted; arts. 93–94, 610–611 with neighbours, 669–673 and 763–767. Printed/physical pages 77–80 visually inspected for rates, timing and distinct calendars. This is a selected reading, not a whole-volume amendment-chain certification.	2026-11-01
Signed 2026 finance law, Loi 021-2025/ALT, Journal officiel special 1	Identity/promulgation pages and OCR amendment headings screened across arts. 14–36 against CGI article numbers. No amendment of arts. 129–159, 610–611 or 765–766 identified in those headings. This is limited overlay screening, not verification of every provision or all later legislation.	2026-11-01

The rule ledger records every drafted rule, original-language anchor and source hash. The migration receipt preserves the corporate Guide's two transferred table rows against an immutable commit; its IS-credit body and all other Guide bodies remain unchanged.

Not yet confirmed: current prescribed declaration/claim/certificate IDs and boxes, authenticated portal upload/acknowledgement and electronic payment references; administrative rounding and detailed penalty month-counting/cumulation; general-administrator or non-dividend borrowing-product remittance calendar beyond the expressly read branches; exact interaction between deemed dividend payment and an absent distribution resolution; individual residence, final-tax/credit treatment, foreign dividends and foreign tax relief; convention force, entitlement and relief procedure for any recipient; current community-company classification evidence; special exemptions outside the drafted art. 130/134 branches, art. 134(6) restructuring interpretation and redemption issue-basis execution; associate-reimbursement claim form/time limit/refund execution; PE deemed distributions and investment disposals; further amendments outside the selected source set. All seven pack domains remain partial. This new job and its two migrated corporate rows have completed independent conditional source review, with one correction closed; no accountant has attested to them.