The definition of permanent establishment has been revised and expanded upon by the Finance Law 2017. A permanent establishment is defined as a fixed place of business where the operations of a company are wholly or partly carried on. The fixed place of business may include:

A management office;
A branch office;
An office;
A factory;
A workshop;
A mine, quarry, or other place of extraction of natural resources;
A construction or assembly project or supervisory activities related thereto if lasting for more than 6 months;
A sales outlet;
Provision of services by an enterprise through its employees or other personnel engaged by the enterprise, if such activities continue in the country for a period of more than 183 days during a 12-month period;
A dependent agent to the extent this agent either has and regularly exercises the authority to negotiate and conclude contracts in the name and on behalf of the principal, or maintains in Burkina Faso a stock of merchandise for regular deliveries to clients of the principal; or
The collection of insurance premiums or the insurance of risks located in Burkina Faso by an insurance or reinsurance undertaking through an employee or a person other than an independent agent acting in the normal course of his business.

However, the following places are not considered as a permanent establishment of a foreign entity in Burkina Faso:

Using facilities for the storage or display of goods belonging to the enterprise;
Maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of storage and display;
Using facilities for storing goods or merchandise belonging to the enterprise for the sole purpose of being processed by another enterprise;
Using a fixed place of business for the purpose of advertising, providing information, scientific research, or enabling the execution of a contract for patent or know-how, if they are of preparatory or auxiliary character;
Using facilities for the carrying out of activities of preparatory or auxiliary character; or
Using of facilities for the combined exercise of the activities listed above.

Effective 1 January 2023, non-residents not having a permanent establishment in Burkina Faso are required to appoint a resident tax representative accredited with the tax authorities to meet all corporate tax obligations. This requirement is an extension of the existing requirement of appointing a resident tax representative for VAT reporting and payment purposes.

Powerful Tax Solutions

Tax Rules Engine

Collaboration Tools

Latest Tax News