Burkina Faso has instituted a tax called Tax on Financial Activities (TAF) in the tax system, as of January 1, 2021, according to a press release from the Director General of Taxes Moumouni Lougué .

The Director General of Taxes informs taxpayers, in particular banks and financial institutions approved in Burkina Faso, foreign exchange operators, persons carrying out money transfer operations and financial intermediation, that under the terms of the provisions on the finance law for the execution of the State budget, financial year 2021, a tax called Tax on financial activities (TAF) is instituted in the tax system, as of January 1, 2021, stipulates the press release.

This tax replaces VAT and applies to operations relating to banking and financial activities and, in general, to trading in securities and money, with the exception of leasing operations, specified the tax boss.

Affected persons have an obligation to charge the tax to their customers subject to statutory exemptions, he continued.

As a reminder, of which in particular subject to the TAF, interest and similar income, including overdraft commissions relating to customers, commissions acquired on the occasion of foreign exchange transactions, commissions received on the occasion of transfers of 'money.

The tax rate is set at 17%. It is reduced to 15% for companies subject to the normal real tax profit (RNI) regime and interbank refinancing.

It should be noted that transactions subject to TAF are exempt from value added tax.