Burundi is one of Africa’s smallest countries by landmass (26,834 square km), covering only 0.1% of the vast continent. This landlocked East African country borders the Democratic Republic of Congo, Rwanda, and Tanzania.

With a workforce of 6.1 million, Burundi is a top choice for affordable overseas labor. The Burundian economy thrives on agricultural exports, with coffee, tea, and spices accounting for 69.5% of its total global trade.

Even though Agriculture accounts for 86% of total employment in Burundi, the service sector employs 12% of the total workforce. This means foreign organizations can hire from over 500,000 trained professionals in Burundi.

Before you start hiring and doing business in Burundi, you should familiarize yourself with payroll and income tax laws to avoid legal traps and other consequences.

In Burundi, payroll taxes are classified as personal income taxes, and the body responsible for administering tax laws is the Office Burundais de Recettes (OBR), otherwise called the Burundian Revenue Office.     

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Overview of Income Tax in Brunei

After Burundi’s civil war ended in 2005, the country was admitted into the East African Community in 2007. Thereafter, Burundi sought to rebuild all aspects of its economy, including the taxation system.

As a result, the Burundian Revenue Office (OBR) was established on July 14, 2009, under Law No.1/11. This law replaced the existing Department of Tax Administration under Burundi’s Finance Ministry. On November 5, 2021, Law No.1/22 revised the OBR Act.

In Burundi, income taxes are used to reduce poverty through improved public revenue and a stable business environment. With over 87% of its citizens below the poverty line, the OBR takes its core duty seriously.

To avoid burdening its already poor population, Burundi operates a tax system that focuses its attention on high-income and middle-income earners.

Income Tax Rates in Burundi

Income taxes for citizens and resident individuals in Burundi are considered fair thanks to a progressive tax system. As your income increases, you pay more to finance government spending and other expenses.

As an international employer, you should note that salaries and taxes can only be paid in the local currency. Burundi’s local currency is the Burundian Franc (BIF), and you can bypass all the currency, payroll, filing, and compliance complexities with a competent employer of record in the country like Remote People.

Currently, the tax rate breakdown for Burundi’s citizens and resident individuals is as follows.

Tax RateTaxable Income (BIF)
0%BIF 0.00 – BIF 1,800,000
20%BIF 1,800,000.01 – BIF 3,600,000
30%BIF 3,600,000.01 and above

If you are an agricultural worker earning BIF 1,800,000, you are exempt from paying personal income taxes.

However, if you are a finance manager or government worker earning BIF 3,000,000 per month, you will have to pay BIF 600,000 in taxes.

A high-income earner with a take-home of BIF 5,000,000 will have to pay BIF 1,500,000 in taxes.

Non-Residents

Non-residents who are not affiliated with a permanent establishment are required to file personal income taxes with the OBR. The tax rate for these individuals is fixed at 15% regardless of the income bracket.

Other income taxes for both resident and non-resident individuals include;

Tax CategoryTax Rate
Dividends15%
Interests15%
Royalties15%
Management and Professional Fees15%
Capital Gains15%

Employer and Employee Contribution Rates in Brunei

Employers and employees in Burundi are responsible for remitting social security contributions. Before income taxes are administered on employee wages, employers are required to deduct social security contributions. This allows taxpayers to enjoy greater relief and reduce their total tax liability.

In Burundi, the body responsible for collecting and administering social security funds is the National Social Security Institute (INSS). The INSS caters to six cardinal social security programs, which include:

  • Old age, disability, and survivors
  • Health and long-term care benefits
  • Sickness and maternity benefits
  • Accidents at work and occupational diseases
  • Unemployment
  • Family and household benefits

To deliver these social services, the INSS funds the following schemes:

  • Social Security Fund – This fund directly provides for Burundi’s poverty alleviation programs, childcare for contributing employees, and financial support for family welfare.
  • National Health Insurance Fund (CNAM) – This covers healthcare expenses for contributing employees and their dependents.
  • National Pension Fund (CNAPS) – This scheme covers retirement plans, old age benefits, and pension funds for Burundi’s retirees.
  • National Employment and Vocational Training Fund (FNEF) – 48% of Burundi’s population is below 18 years old, and this fund pays for employment schemes and vocational training programs for its teeming young population.
  • Occupational Risk (Work Injury) Insurance program – Since 86% of its population works in the agricultural sector, Burundi uses this fund to cover compensation and medical care for work-related injuries and illnesses.

Breakdown of Employer Contributions

Burundi’s OBR and INSS mandate employers to file taxes and contributions before the 15th of the following month. Every year, employers are also required to file an annual employer declaration. This declaration will contain a summary of the total gross salary paid to each employee and the total tax and contributions deducted and remitted within that year.

The OBR uses this declaration to ensure compliance, and failure to submit (or worse, falsify) the declaration can lead to heavy fines and legal proceedings.

Also, employers can treat social security contributions as business expenses depending on their corporate reporting needs. The total employer tax payable to the INSS is 13% of the employee’s gross income. Here’s a breakdown;

Social Security SchemeContribution RateContribution Cap
Social Security6%BIF 450,000 per month
National Health Insurance3% 
National Employment and Vocational Training Fund1% 
Work Injury Insurance3%BIF 80,000 per month

Breakdown of Employee Contributions

In Burundi, employees are responsible for filing contributions under the Social Security Fund, the National Pension Fund Scheme, and the National Health Insurance Fund.

Additionally, employees are also required to file an Annual Employee Income Tax Return with OBR at the end of every year. Employees in Burundi will declare all sources of income and claim eligible deductions or tax credits that were not covered under personal income tax remittance.

The employee tax rate on gross income is usually around 8%.

Social Security SchemeContribution RateContribution Cap
Social Security4%BIF 450,000 per month
National Pension Fund1% 
National Health Insurance Fund3% 

Corporate Income Tax and Other Taxes in Burundi

Corporate Tax

The Office Burundais De Recettes (OBR) fixed corporate tax for both resident and non-resident companies at 30% of profit. However, if the company makes a loss within a fiscal year, they are obligated to remit 1% of its turnover.

Capital Gains, Dividends, Branch Profits, and Royalties Tax

Capital gains from the sale or cession of commercial immovable property are taxed at 15%. This tax is remitted alongside the corporation tax. Dividends and interest payments, royalties, and branch profit remittances are also taxed at 15%.   

Value Added Tax (VAT)

Value Added (Sales) Tax in Burundi is set at a standard rate of 18% for most goods and services. However, the OBR levies 10% VAT on essential goods such as basic foodstuffs, medicine, and educational items. Furthermore, the OBR exempts healthcare services from VAT altogether.

Transfer Pricing

Burundian Income Tax Law does not have specific Transfer Pricing rules. However, the general guideline is that interest expenses paid to related entities are non-deductible for tax purposes if the debt-to-equity ratio is over 30%. Also, there are no stamp duties on transfers in Burundi.

Custom Taxes

The East African Customs Union (of which Burundi is a member) stipulates a general external tariff for goods not originating from East Africa. The import duty rate for raw materials is 0%, semi-finished goods are taxed at 10%, while finished goods carry a 25% import levy.

Inheritance Taxes

There are no inheritance taxes in Burundi.

Enjoy Hitch-Free Compliance in Burundi with Remote People

Burundi is one of the most attractive countries to hire from due to affordable wages, a 45-hour/week work schedule, and dual language status (English and French are official languages in Burundi).

If you are looking to hire, leverage, and manage talent in Burundi, we’ve got the whole process covered. You’ve got nothing to worry about because we will handle your recruiting, documentation, payroll, and income tax compliance.

And with the Remote People global payroll calculator, you can monitor how your Burundian employees are being paid and the taxes they remit to the government without any hassle.