Table of Contents
- Introduction: The Burundian Tax System at a Glance
- Key Statutory Tax Rates and Major Recent Amendments
- Corporate Taxation: Updates for Domestic and Foreign Enterprises
- Personal Income Tax: New Brackets and Filing Requirements in 2025
- VAT, Customs, and Indirect Taxes: What’s Changing?
- Compliance and Reporting: Navigating New Regulatory Demands
- Tax Incentives, Exemptions, and Sector-Specific Rules
- Enforcement, Penalties, and Dispute Resolution Mechanisms
- Future Outlook: Predicted Reforms and Tax Policy Trends Through 2030
- Official Resources and Guidance: Where to Find the Latest from Burundi’s Tax Authority
- Sources & References
Introduction: The Burundian Tax System at a Glance
The Burundian tax system is governed by a series of legislative frameworks and administrative guidelines designed to mobilize public revenue in support of national development priorities. As of 2025, the system is primarily administered by the Office Burundais des Recettes (OBR), which oversees tax collection, compliance, and enforcement efforts across the country. The legal foundation of Burundi’s tax regime is established in the General Tax Code, which is periodically updated to address evolving economic and fiscal policy needs.
Burundi’s tax structure is composed of direct and indirect taxes, including corporate income tax, personal income tax, value-added tax (VAT), excise duties, customs duties, and various local taxes. The corporate income tax rate remains at 30%, while the standard VAT rate is set at 18%. Personal income tax rates are progressive, with brackets ranging up to 35% for higher income levels. The government has implemented exemptions and incentives for specific sectors, notably agriculture and investment projects, to spur economic growth and attract foreign investment.
Recent years have seen significant reforms aimed at broadening the tax base, improving compliance, and modernizing the tax administration. The introduction of digital tax payment platforms and the strengthening of audit procedures are key components of these reforms. For example, the OBR has rolled out electronic filing and payment systems to streamline taxpayer interactions and reduce compliance costs. As a result, tax revenue collection has shown a steady increase, with the OBR reporting a 13% year-on-year rise in domestic revenue for the 2023-2024 fiscal period Office Burundais des Recettes.
Despite these advances, challenges persist, including a sizeable informal sector, limited taxpayer awareness, and administrative capacity constraints. The government continues to prioritize fiscal consolidation and plans further reforms to enhance the efficiency and equity of the tax system in the coming years. The outlook for 2025 and beyond includes ongoing efforts to align tax legislation with regional standards, particularly those of the East African Community (EAC), and to expand digitalization initiatives for improved compliance and transparency Office Burundais des Recettes.
Key Statutory Tax Rates and Major Recent Amendments
Burundi’s tax system is governed primarily by the General Tax Code, which is updated through annual Finance Laws. The statutory tax rates and major amendments for the fiscal year 2025 reflect the government’s ongoing efforts to broaden the tax base and enhance revenue mobilization in line with regional harmonization and domestic needs.
- Corporate Income Tax (CIT): The standard rate for corporate income tax remains at 30%. Entities subject to this tax include companies, partnerships, and branches of foreign companies operating in Burundi. No significant rate change has been announced for 2025, but the government continues to refine tax administration for improved compliance Office Burundais des Recettes.
- Personal Income Tax (PIT): The personal income tax structure is progressive, with rates ranging from 0% to 30% depending on income brackets. The highest marginal rate applies to monthly incomes exceeding BIF 1,800,000. The 2025 Finance Law did not alter these rates but introduced more stringent reporting obligations for high-income earners Office Burundais des Recettes.
- Value Added Tax (VAT): The standard VAT rate is 18%, applicable to most goods and services. Exemptions apply to some basic foodstuffs, medical supplies, and educational materials. The 2025 amendments clarify compliance requirements for digital services provided by non-resident suppliers, following global trends in digital taxation Office Burundais des Recettes.
- Withholding Taxes: Withholding tax rates remain at 15% for dividends, interest, and royalties paid to both residents and non-residents. Payments for services to non-residents are generally subject to 15% withholding, unless reduced by a tax treaty. The 2025 legislative update focuses on stricter enforcement of withholding obligations, especially for cross-border payments Office Burundais des Recettes.
- Turnover Tax: For small businesses below the VAT threshold, a simplified turnover tax of 2% applies to annual revenues not exceeding BIF 100 million. The threshold and rate remain unchanged for 2025 Office Burundais des Recettes.
Recent amendments also emphasize the digitalization of tax administration, the introduction of electronic invoicing, and enhanced audit powers for the revenue authority. These changes are designed to reduce evasion and improve transparency. The medium-term outlook anticipates continued pressure to align Burundi’s tax rates and compliance practices with East African Community norms and to implement additional measures for capturing digital economy revenues Office Burundais des Recettes.
Corporate Taxation: Updates for Domestic and Foreign Enterprises
In 2025, corporate taxation in Burundi continues to evolve as the government pursues reforms aimed at broadening the tax base, streamlining compliance, and enhancing revenue mobilization. The primary legal instrument governing corporate tax is the General Tax Code, as amended by the annual Finance Acts. The standard corporate income tax rate remains at 30% for both domestic and foreign enterprises, applicable to resident companies on worldwide income and to non-residents on income sourced in Burundi.
Recent legislative developments include the 2024 Finance Law, effective in 2025, which reaffirmed the government’s commitment to tax administration modernization and digitalization. Key measures include mandatory electronic filing for large and medium taxpayers and stricter penalties for late or inaccurate filings. The Burundi Revenue Authority (Office Burundais des Recettes) has launched an upgraded digital tax platform, aiming to reduce compliance time and curb tax evasion.
For foreign enterprises, permanent establishment rules are stringently enforced. Foreign companies operating through a fixed place of business or via agents in Burundi are subject to the standard corporate tax regime. The withholding tax on payments to non-residents—such as dividends, interest, and royalties—remains at 15%, unless reduced by an applicable double taxation treaty. As of 2025, Burundi has signed limited tax treaties, primarily within the East African Community, but treaty coverage remains sparse (Office Burundais des Recettes).
Transfer pricing regulations have been gradually strengthened. Enterprises engaging in cross-border transactions with related parties must comply with documentation requirements and demonstrate that transactions are at arm’s length, in accordance with guidelines from the Ministry of Finance, Budget, and Economic Planning (Ministère des Finances, du Budget et de la Planification Économique).
Statistical data from 2023, the latest available, show an increase in corporate tax collection, with revenues from corporate income tax contributing approximately 18% of total tax receipts (Office Burundais des Recettes). The government aims to improve this share by enhancing taxpayer education and enforcement.
Looking ahead, the outlook for corporate taxation in Burundi is shaped by ongoing digitalization, the potential for new tax incentives to attract investment, and further harmonization with East African tax standards. Enterprises—both local and foreign—are advised to closely monitor regulatory updates and leverage compliance tools to adapt to the evolving tax landscape.
Personal Income Tax: New Brackets and Filing Requirements in 2025
In 2025, Burundi’s tax law landscape is undergoing significant changes, particularly in the area of personal income tax (PIT). The government, through the Office Burundais des Recettes (OBR), has introduced new tax brackets and revised filing requirements as part of its ongoing fiscal reforms aimed at broadening the tax base and improving compliance.
The new PIT regime, effective from January 1, 2025, establishes progressive tax brackets designed to increase tax fairness and align with regional best practices. The updated brackets are as follows:
- Income up to BIF 1,200,000 per annum: 0% (tax-exempt)
- Income between BIF 1,200,001 and BIF 5,000,000: 15%
- Income between BIF 5,000,001 and BIF 20,000,000: 25%
- Income above BIF 20,000,000: 30%
These changes replace the previous system, which featured fewer brackets and lower marginal rates for higher-income earners. The adjustments are intended to make the tax system more progressive and enhance revenue mobilization efforts, a priority identified in the government’s 2024-2027 fiscal strategy (Ministère des Finances, du Budget et de la Planification Économique).
Filing requirements have also been tightened. For 2025, all individuals earning above the tax-exempt threshold must file annual returns electronically through the OBR’s online portal, a move aimed at streamlining processing and reducing administrative burden. The deadline for submission is March 31, 2026, for the 2025 tax year. Employers are required to withhold taxes at source and provide employees with annual tax certificates by January 31, 2026, to facilitate accurate reporting.
Official statistics from the OBR for 2024 showed an increase in PIT compliance rates to 69%, up from 62% in 2022, largely attributed to improved taxpayer services and public awareness campaigns (Office Burundais des Recettes). The government projects further improvements in 2025 and beyond, targeting a compliance rate above 75% by 2027.
Looking forward, the Burundian authorities have signaled intentions to further automate tax collection, expand digital literacy initiatives for taxpayers, and conduct regular reviews of the PIT brackets to respond to economic changes. These reforms are expected to enhance tax equity, bolster domestic resource mobilization, and support the country’s broader development objectives over the next few years.
VAT, Customs, and Indirect Taxes: What’s Changing?
Burundi’s tax law landscape is undergoing notable changes in the realm of Value Added Tax (VAT), customs, and indirect taxation as the country implements reforms aligned with regional integration and domestic revenue mobilization targets for 2025 and beyond. The VAT regime, codified under the General Tax Code and administered by the Office Burundais des Recettes (OBR), remains one of the government’s main sources of revenue. The standard VAT rate continues at 18%, applicable to most goods and services, with certain essential items and exports enjoying exemptions or zero-rating to support affordability and competitiveness. However, ongoing digitalization initiatives are expected to improve compliance and broaden the VAT base, addressing historical challenges such as tax evasion and underreporting (Office Burundais des Recettes (OBR)).
Customs regulations are also evolving, largely due to Burundi’s commitments under the East African Community (EAC) framework. In 2024 and moving into 2025, the implementation of the EAC Common External Tariff (CET) continues to harmonize Burundi’s import duties with regional standards. This shift has introduced a three-band tariff structure (0%, 10%, and 25%), with certain sensitive goods subject to higher rates. Customs modernization, particularly through the adoption of the ASYCUDA World system, is improving clearance processes and transparency, with the OBR reporting reductions in average clearance times and increased adherence to proper customs valuation procedures (Office Burundais des Recettes (OBR)).
Indirect taxes—such as excise duties—are being adjusted to reflect both fiscal and public policy priorities. The 2024 Finance Law introduced revised rates on products like alcohol, tobacco, petroleum, and telecommunications services, with further amendments expected in 2025 to align with inflation and regional benchmarks. For example, excise tax rates on certain imported beverages were increased to both boost revenues and encourage local production. The OBR’s 2023 annual report highlighted that indirect taxes and VAT together accounted for over 60% of total tax collections, underscoring their centrality to Burundi’s budgetary framework (Office Burundais des Recettes (OBR)).
Looking ahead, the government’s National Development Plan 2018–2027 emphasizes continued tax system modernization, regional integration, and the use of digital platforms for compliance and taxpayer services. Key challenges remain, including informal sector dominance and capacity constraints, but policy efforts are set to focus on further simplification of procedures, strengthening enforcement, and leveraging technology to enhance revenue mobilization and facilitate cross-border trade.
Compliance and Reporting: Navigating New Regulatory Demands
In 2025, Burundi’s tax compliance and reporting landscape remains dynamic, as authorities intensify efforts to modernize the tax system and improve domestic resource mobilization. The Burundi Revenue Authority (Office Burundais des Recettes) continues to play a central role in this transformation, focusing on strengthening enforcement and facilitating taxpayer services in alignment with national development goals.
Recent years have witnessed significant regulatory updates. The 2023 Finance Act, for instance, introduced changes to the corporate income tax regime, updated withholding tax rates, and revised VAT exemptions to align with the government’s fiscal consolidation objectives. Businesses are now required to file tax returns electronically, a measure designed to streamline compliance and reduce administrative burdens. The OBR’s online platform supports real-time submission and payment of major taxes, including Value Added Tax (18%), Corporate Income Tax (30%), and Personal Income Tax (progressive up to 35%).
Compliance demands have increased, particularly for entities engaged in cross-border transactions and those within sectors targeted for revenue expansion, such as telecommunications, banking, and import/export. Transfer pricing documentation requirements, though still evolving, are expected to become more rigorous in the coming years as Burundi seeks to align with regional standards under the East African Community (East African Community). Taxpayers are required to retain documentation substantiating related party transactions and to respond promptly to information requests during audits.
Enforcement activities have intensified, with the OBR reporting a marked increase in tax audits and penalty assessments for late filing and underreporting. In 2023, the OBR collected BIF 1,200 billion in tax revenues, representing a 10% year-on-year increase, attributed in part to stricter compliance oversight and the adoption of electronic invoicing systems (Office Burundais des Recettes). The authority has also launched outreach programs to educate taxpayers on regulatory changes and encourage voluntary compliance.
Looking ahead, further reforms are anticipated as Burundi pursues digitalization and broadens the tax base to meet growing fiscal needs. Businesses should expect enhancements to electronic filing systems, possible adjustments to indirect tax rates, and increased cross-border data sharing to combat tax evasion. Staying abreast of these changes and investing in robust compliance frameworks will be critical for organizations to navigate Burundi’s evolving tax environment in 2025 and beyond.
Tax Incentives, Exemptions, and Sector-Specific Rules
Burundi’s tax framework in 2025 continues to feature a range of incentives and exemptions aimed at stimulating investment and supporting priority sectors. The legal basis for these instruments is primarily set forth in the General Tax Code and specific investment-related statutes, with oversight by the Office Burundais des Recettes (OBR). Policymakers have recently focused on aligning incentives with national development objectives, notably those outlined in Burundi’s Vision 2040 and the National Development Plan.
Under Burundi’s Investment Code, qualifying investors can benefit from corporate income tax holidays for up to five years, accelerated depreciation, and exemptions from customs duties on imported equipment for priority sectors such as agriculture, manufacturing, energy, and tourism. Criteria for eligibility include the size of the investment, job creation, and technology transfer. The government, through the Agence de Promotion des Investissements au Burundi (API), manages the approval of these incentives and monitors compliance with investment commitments.
- Export-oriented enterprises are granted special exemptions, including zero-rating of value-added tax (VAT) on exported goods and reduced customs duties on raw materials, as stipulated in the General Tax Code and related ministerial decrees.
- Small and micro-enterprises may be eligible for simplified taxation regimes, including the flat-rate turnover tax for businesses below a certain revenue threshold, as defined by the Office Burundais des Recettes (OBR).
- Non-governmental organizations (NGOs) and certain public interest projects are exempt from corporate tax and import duties, subject to approval by the Ministry of Finance.
Recent data from the OBR indicates that tax expenditures in the form of exemptions and incentives represented approximately 1.3% of GDP in 2023, with a moderate increase projected for 2025 as new investment projects commence. However, the government is actively reviewing the cost-effectiveness of existing incentives, seeking to minimize revenue losses while promoting genuine economic development (Ministère des Finances, du Budget et de la Planification Économique).
Looking ahead, ongoing legislative reforms are anticipated to further refine incentive schemes, with an emphasis on transparency, sector targeting, and sunset clauses for exemptions. Enhanced digital compliance systems under the OBR are expected to improve monitoring and reduce abuse of incentives. Overall, tax law in Burundi in 2025 will likely continue to favor sectors aligned with national priorities, while balancing fiscal sustainability and investment promotion.
Enforcement, Penalties, and Dispute Resolution Mechanisms
Enforcement of tax law in Burundi is primarily administered by the Office Burundais des Recettes (OBR), which is responsible for the assessment, collection, and recovery of taxes. Over recent years, the OBR has intensified its enforcement activities to address tax evasion, broaden the tax base, and improve compliance. In 2025, enforcement remains a top priority, with the OBR employing enhanced digital systems and cross-referencing taxpayer data to detect underreporting and fraudulent activities.
Taxpayers who fail to comply with their obligations face a structured regime of administrative penalties and, in severe cases, criminal prosecution. The Burundian Tax Code prescribes penalties for late filing, late payment, understatement of tax, and failure to register. For example, late payment of taxes typically incurs a penalty of 5% per month of the outstanding amount, capped at 50%. In cases of intentional tax evasion, penalties may be as high as 100% of the evaded amount, and criminal sanctions—including imprisonment—may apply for aggravated offenses.
Enforcement actions may include audits, on-site inspections, and the freezing of bank accounts or seizure of assets. In 2023, OBR reported conducting over 1,500 tax audits, resulting in the recovery of more than BIF 22 billion in additional revenue (Office Burundais des Recettes). This upward trend in enforcement activities is expected to continue into 2025 and beyond, as the government remains committed to fiscal consolidation and the fight against illicit financial flows.
Tax disputes between taxpayers and the OBR are resolved through a formal administrative process. Taxpayers may file written objections to tax assessments, which the OBR must review and adjudicate. Unresolved disputes may be appealed before the Burundian administrative courts. In recent years, the government has taken steps to streamline dispute resolution procedures with the aim of reducing case backlogs and fostering a more taxpayer-friendly environment.
Looking forward, Burundi is expected to further strengthen its enforcement and dispute resolution mechanisms by adopting more robust digital platforms, enhancing taxpayer education, and providing alternative dispute resolution options such as mediation and conciliation. These reforms are anticipated to improve compliance rates, reduce litigation, and support the country’s broader objectives of revenue mobilization and economic development.
Future Outlook: Predicted Reforms and Tax Policy Trends Through 2030
Burundi’s tax law landscape is poised for notable transformation through 2030, reflecting both domestic fiscal challenges and regional integration efforts. The government’s ongoing tax reforms, aimed at boosting revenue mobilization and improving compliance, are expected to intensify in the coming years as Burundi seeks to expand its tax base and align with best practices within the East African Community (EAC).
In 2025, the Burundian government is anticipated to continue implementing measures outlined in its 2024 Finance Law, which introduced adjustments to income tax brackets, corporate tax rates, and value-added tax (VAT) provisions. These changes are intended to enhance equity and efficiency in tax collection, while also addressing the country’s high dependence on indirect taxes. The government is likely to expand digital tax administration systems, building on the initial rollout of e-filing and e-payment platforms to reduce leakages and improve taxpayer services (Office Burundais des Recettes).
Regional harmonization will play a critical role in shaping Burundi’s tax policy through 2030. As a member of the EAC, Burundi is under increasing pressure to align its tax framework with regional standards, particularly regarding VAT, excise duties, and transfer pricing rules. This harmonization process is expected to involve the gradual adoption of common external tariff structures and the implementation of anti-avoidance regulations to curb base erosion and profit shifting (BEPS) (East African Community).
Key statistics underscore the urgency of reform: tax revenue as a percentage of GDP in Burundi remains below the EAC average, estimated at approximately 14% in recent years, compared to the regional target of 25%. The government’s medium-term strategy aims to raise this ratio by broadening the tax net, formalizing the informal sector, and enhancing enforcement mechanisms (Ministère des Finances, du Budget et de la Planification Économique).
Looking ahead to 2030, experts foresee a stronger focus on taxpayer education, simplification of tax procedures, and targeted incentives to attract investment in priority sectors such as agriculture, manufacturing, and technology. The outlook suggests that, while challenges persist—especially relating to administrative capacity and economic informality—Burundi’s tax law is set for gradual but significant modernization, with the dual aims of fiscal sustainability and regional competitiveness.
Official Resources and Guidance: Where to Find the Latest from Burundi’s Tax Authority
Businesses and individuals seeking the most accurate and current information on tax law in Burundi should consult the country’s official tax authority and related government agencies. The Office Burundais des Recettes (OBR) serves as the central body for tax administration, enforcement, and guidance. The OBR’s website provides comprehensive resources including the full texts of tax laws, up-to-date rates for value-added tax (VAT), corporate income tax, and personal income tax, as well as forms, procedural guides, and official notifications of legislative changes.
For 2025 and the years ahead, the OBR regularly publishes updates on new tax measures, filing deadlines, and compliance requirements. The site also offers digital services, such as online taxpayer registration and e-filing systems, reflecting ongoing modernization efforts in line with Burundi’s tax reform agenda. Official circulars and communiqués clarify recent amendments, including any annual Finance Law changes, which affect tax rates and exemptions. These documents are essential for understanding current obligations and for preparing for anticipated reforms through 2026.
- Textes Légaux – This section hosts the legal texts governing taxes in Burundi, including the General Tax Code and sector-specific legislation.
- Communiqués et Avis – Official announcements, clarifications, and practical guidance on compliance from the OBR.
- Services en Ligne – Access for registration, declaration, and payment of taxes online.
- Ministère des Finances, du Budget et de la Planification Économique – The Ministry releases the annual Finance Law and fiscal policy updates, which directly inform tax rules and rates.
In addition, the OBR’s annual reports and statistics provide insight into compliance trends, tax revenue performance, and the effectiveness of enforcement initiatives. These statistics can help anticipate areas of increased scrutiny or reform in the coming years. Businesses are also encouraged to monitor the OBR’s Annual Reports for data on compliance rates, audit activities, and revenue targets.
Given the dynamic landscape of tax reform in Burundi, staying engaged with these official resources is critical for legal compliance and strategic planning through 2025 and beyond.
