French concessions in Burkina Faso end

The Burkina Faso Ministry of Foreign Affairs announced the end of tax benefits granted to France.

In the informative note sent by the Ministry of Foreign Affairs of Burkina Faso to the Ministry of Foreign Affairs of France, it was indicated that the “Avoidance of Double Taxation” agreement applied for the benefit of French companies and citizens was terminated.

In the note, it was noted that the termination will become effective within a period of 3 months.

AGREEMENT OF THE FRENCH CONFERENCE

The Double Taxation Elimination agreement was first signed between France and Burkina Faso in 1965, with various amendments to the agreement in 1967, 1971, and 1974.

Within the scope of the agreement, French companies and citizens paid tax on their income in Burkina Faso to France and were exempted from many taxes in Burkina Faso.

The agreement provided a great advantage to French multinational companies operating in Burkina Faso.
With the termination of the agreement, the French will pay to this country the tax on the income they obtained in Burkina Faso.

SIGNIFICANT TAX REVENUE WILL BE PROVIDED

Burkina Faso wanted to renegotiate the agreement in 2020 and 2021, but France did not respond to this request. It is claimed that Burkina Faso has suffered a severe loss of revenue for many years due to the agreement and that it will gain a significant amount of tax revenue from the termination of the agreement.

A few days ago, France suspended development aid and budget support to Burkina Faso, which supported the coup in Niger. (AA)