Burkina Faso has implemented mandatory country-by-country (CbC) reporting from 1 January 2023. In-scope companies operating in Burkina Faso that are members of a multinational enterprise (MNE) are thus required to file a CbC report electronically, using a template prescribed by the General Tax Directorate (Direction Générale des Impôts, or DGI), the authority responsible for administration and collection of taxes in Burkina Faso. The CbC report should be submitted electronically within the 12 months following the end of the fiscal year.
The CbC report template has yet to be set by the Minister of Finance. The content of the CbC report template provided by this new article is fixed and determined by a decree of the Minister of Finance.
Companies that are in-scope must pass the following initial criteria:
- Be part of an MNE group; and
- The MNE group must have an aggregate turnover equal to or above XOF 491 billion (approximately EUR 747 million).
Thus, companies that may not have a CbC report filing requirement in other jurisdictions that generally follow the EUR 750 million guideline as per the Organisation for Economic Co-operation and Development (OECD) may have the compliance requirement in Burkina Faso. It is recommended that Burkinabe companies that are members of foreign MNEs monitor their CbC report compliance position in this regard. Furthermore, a fluctuation in exchange rates between the West African franc and the group reporting currency may impact this position.
A Burkinabe company other than an ultimate parent company of an MNE group will not be liable for filing the CbC report regarding a fiscal year in Burkina Faso in cases where there is a filing of substitution in another jurisdiction by the MNE group under the fulfilment of cumulative conditions for this fiscal year.
The cumulative conditions state, in this article, to benefit from this exemption in Burkina Faso is to ensure that the CbC report was filed by another jurisdiction and the report is available.
Advance pricing arrangements (APAs)
Also from 1 January 2023, Burkinabe companies that are part of an MNE group may conclude an APA with the DGI. APAs are intended to prevent transfer pricing disputes and will specify in advance the method for determining future transactions carried out between related parties. APAs are allowed for a period not exceeding four years.
The terms and conditions for the conclusion and termination of APAs will be determined by decree of the Minister of Finance.