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Investment Incentives in Burundi

General Incentives

  • Good reasons to invest in Burundi include, amongst others, access to markets, capital transfers, certain tax advantages, an Investment Promotion Agency (API) and a business environment in constant improvement.

Tax Incentives

  • A tax credit of 37% of the amount invested in new or used assets is available to investors provided the amount invested is at least BIF100 million and the business assets are held for at least five tax periods.

The investment allowance is 50% for investment in rural areas and specified activities as provided by the Investment Authority.

  • Tax discount and exemption – A registered investment entity that operates in a Free Trade Zone (FTZ), and foreign companies that have theirs headquarters in Burundi that fulfills the requirements stipulated in the Burundian law on Investment Promotion, is entitled to:
  • Exemption from corporate income tax for its 10 years of business.
  • 15% corporate income tax from year 11 and upwards.
  • 10% corporate income tax if the investor employs more than 100 Burundians.
  • Exemption from 15% WHT on dividends.
  • Tax-free repatriation of profits.
  • Free transfer on purchase or sale of buildings.

http://www.deloitte.com/assets/Dcom-SouthAfrica/Local%20Assets/Documents/Burundi.pdf

 

About The Author

John Muhaise-Bikalemesa (JMB), is the founder of Muhaise.com blog and bigdrumassociates.com company. Learn more about him here and connect with him on his social medias below

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