Generally, all business expenses are allowed as a deduction, unless specifically disallowed.

The following key expense types are not deductible or have limited deductibility for tax purposes:

Head-office overhead costs, including the cost of technical, accounting and financial assistance paid to related parties in excess of 10% of general expenses are not deductible;
Payments made in foreign countries are deductible provided they correspond to genuine operations and are within the dual limit of 5% of the turnover excluding taxes and 20% of the overhead of the paying company;
Commission and brokerage fees incurred in excess of 5% of purchases made by purchasing offices on behalf of the entity operating in Burkina Faso are not deductible;
Compulsory employer contribution for the retirement of expatriate employees in excess of 20% of the basic salary of the expatriate is not deductible;
Payments made to residents of non-cooperative jurisdictions and countries with privileged tax regimes are not deductible (see Sec. 13.5.);
Payments to related parties are deductible up to defined maximum percentages (see Sec. 13.4.2.);
Effective 1 January 2019, rental payments made to a managing director holding more than 10% of the shares, for the use of his personal property for business purpose are not deductible;
Advertising expenses in excess of 0.2% of turnover are not deductible;
Expenditure incurred in cash in excess of XOF 1 million (increased from XOF 100,000 effective 1 January 2024) is not deductible; and
Hotel and restaurant expenses in excess of 0.5% of turnover are not deductible.

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