Burkina Faso Introduces 1% Withholding Tax on Remuneration to Fund National Security Efforts

This January 2024, the Council of the Ministry of Economy, Finance and Foresight endorsed decree N° 2024-0027/PRES-TRANS/PM/MEPFMFPTPS which imposed compulsory deductions of 1% on salaries of public officials as well as employees in private sectors.

The intention is to enhance financial resources of the Patriotic Support Fund (FSP) that is important for combating terrorism in the country. Thereafter following this decree, a circular was sent out by the Ministry of Economy, Finance and Foresight to all employers working in both public and private sectors explaining how to implement the new withholding tax.

According to Chapter 2, Article 4 of this decree; 1% withholding tax will be imposed on an employee's net salary starting from January 1st 2024. The collection period for the withholding tax will be twelve months aiming at assisting both government initiatives against terrorism as well improving national security. Employers are expected to comply with this new regulation by making the necessary deductions from their employees' net salaries and remitting the amounts to the relevant authorities

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