Special Economic Zones / Free Trade Zones

The SEZ is an area or a part of the customs territory, geographically defined, placed under an administrative and management authority, where any goods brought in can generally be considered for import duties and taxes, as being outside the customs territory.

Registered investment entities in a FTZ satisfying certain conditions stipulated in the Burundian Law on Investment Promotion are entitled to following benefits:

CIT exemption for first 10 years of business, and then reduced CIT of 15% from 11th year
Reduced CIT of 10% if the company employs more than 100 Burundi nationals
No withholding tax on dividends
Tax-free repatriation of profits
Exemption from transfer tax on the purchase or sale of buildings

Entities engaged in trade operating in FTZ satisfying certain conditions stipulated in the Burundian Law on Investment Promotion are entitled to following benefits:

Turnover tax during first 10 years of establishment is 1%
Turnover tax, if company employs more than 20 Burundi nationals is 0.80%
Free repatriation of profits

General Tax Incentives available under Investment Code are as follows:

Exemption from customs duties on raw materials, equipment and special vehicles
Payment of countervailing duties of 5% instead of 10% -25% in respect of semi-finished or finished products
Reduction in CIT by 2% for companies employing between 50 and 200 Burundi nationals
Reduction in CIT by 5% for companies employing over 200 Burundi nationals
Depreciation of goods at 100%

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