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Tax Focus Newsletter – June 2022 – Tax Authorities

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The 2022 fiscal year began in Burkina Faso with the
promulgation by Decree No. 2021-1352/PRES of Law No. 042-2021-AN of
December 16, 2021, on the Finance Law for the execution of the
State budget, Fiscal Year 2022.

Among the innovations of this Finance Act 2022, various measures
to strengthen the fight against money laundering and terrorist
financing in Burkina Faso have been adopted.

These measures concern, among other things, the rules related to
the determination of transfer prices and the declaration of
beneficial owners of Burkina Faso companies.

From now, companies established in Burkina Faso, regardless of
their form and activities, must keep a register of their beneficial
owners. A beneficial owner is defined as the person or persons who
ultimately own or control a customer and/or the individual on whose
behalf a transaction is carried out. The definition also includes
persons who ultimately exercise effective control over a legal
person. The register must be kept up to date with all changes in
the beneficial ownership of the legal entity and presented to the
Administration at any time.

In addition to this register, companies are also required to
file, in support of their declaration of existence, a declaration
of beneficial owners using a form provided by the tax authorities.
Pre-existing companies and those created after January 1, 2022,
will be required to file the declaration of beneficial owners at
the same time as the corporate income tax return.

In terms of transfer pricing, related companies whose annual
turnover excluding taxes or gross assets is greater than or equal
to 1,000,000,000 FCFA (1,524,000 €) are required to submit, by
May 31 at the latest, the annual transfer pricing declaration for
the accounting period ended December 31 of the previous year. This
declaration is made on a form in accordance with the model of the
Tax Administration.

In addition, any company operating in Burkina Faso, whose annual
turnover excluding tax or gross assets is greater than or equal to
1,000,000,000 FCFA (1,524,000€), which owns or is owned
directly or indirectly by a company that realizes in Burkina Faso
an annual turnover excluding tax or gross assets is greater than or
equal to 1,000,000,000 FCFA (1,524,000€) is required to keep
at the disposal of the tax authorities a documentation to justify
the pricing policy practiced in the context of transactions of any
kind carried out with these companies.

In terms of procedures, taxpayers are now required to keep
duplicates of invoices, bills of fees, purchase orders, delivery
notes and any other document of the elements contained in the
declarations submitted for 10 years.

The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.

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