VI.   Primary Business Regulations in Burkina Faso


A.  Forms of Business

Burkina Faso's regulations governing the establishment of
businesses include most forms of companies admissible under French
business law.  These include: public corporations, limited
liability companies, limited share partnerships, subsidiaries and
affiliates of foreign enterprises, and sole proprietorships.


B.  Import/Export Regulations

In an effort to deregulate its economy, Burkina Faso has removed
most import/export restrictions on trade in addition to
streamlining taxation and other administrative procedures.  For
instance, there is no export tax nor is there a requirement that an
importer retain an agent/distributor in Burkina Faso, although such
a policy is recommended by the local government.


Prior to 1991, forty products were subject to import restrictions.
Currently, only three products (pharmaceuticals,
arms/ammunition/uniforms, toxic products) require special
authorization.  The pre-shipment inspection of imports over CFA
1,500,000 by the Societe Generale de Surveillance (SGS), an
international verification and control service, is still required.
However, this requirement will be lifted at the end of 1994.

The government of Burkina Faso has also begun to remove import
quotas on products in direct competition with local manufactured
goods, to lift price controls, and to reduce the number of imported
products on which profit margins are controlled.  However, in light
of the recent devaluation, the government reinstituted profit
margin controls on many imports.

Burkina Faso's customs fees are based on goods ad valorem (i.e.,
cif plus fees and commissions).  These duties include the following
components: a five percent customs fee, a variable import fiscal
duty (DFI) and a variable value-added tax both based on the type of
good.  In addition, the following minor levies apply: a four
percent statistical tax, a one percent community solidarity tax
(PCS), a one percent tax to support government intervening agencies
(TSI), and the "peage" set at 500 CFA (USD 0.83) per ton.  If
economic conditions warrant, the government may subsidize the
importation of basic products (eg., rice, sugar) by decreasing the
applicable custom duties. These extraordinary measures are in
addition to the already substantial subsidy the government of
Burkina Faso provides for the importation of rice and other food
staples.  In addition, the government may raise custom fees for a
limited period of time in order to protect local industrial
products.


C.  Fiscal/Business Taxes

In Burkina Faso, informal sector businesses and other small
businesses with an annual turnover of CFA 15 million or less (about
USD 25,000) pay a unique tax called the "Contribution du Secteur
Informel" or CSI.  The maximum CSI tax is CFA 100,000 or roughly
USD 166 per year.  Businesses qualifying for CSI tax status are
prohibited from bidding on state and parastatal tenders.

Individual enterprises and companies in Burkina Faso with an annual
turnover exceeding CFA 15 million are subject to a complex set of
taxes.  These include an annual tax on industrial, commercial and
agricultural profits (IBICA), set at 45 percent, and a forfeit tax
(IMFPIC), paid in advance each year based on the previous year's
gross receipts.  There is also a 25 percent tax on interest income
(the IRC) and a 25 percent tax on investment income (the IRVM).
Businesses must also pay an apprenticeship tax (TPA) on the
salaries of all national and foreign employees (four and six
percent respectively), and a patent tax which has two components (a
fixed amount based on gross revenues and an eight percent tax based
on the rental value of company buildings and the value of the
production equipment).  Upon incorporating, companies must pay a
registration tax equal to three percent of the company's capital.

Since 1993, businesses are required to apply a 15 percent value-
added tax on the value of the product.

In addition there are a number of real estate taxes.  These include
a 15 percent capital gains tax on the sale of real estate, and a
2.5 to 10 percent transfer tax (TBM) applied to the rental value of
the buildings.

Non-IBICA profits are taxed from five to 35 percent.  Private
sector employees and civil servants pay a single tax (IUTS) on
salaries and tips, usually by payroll deduction.