Burkina Faso took a decisive step on August 7, 2023, by formally denouncing the longstanding double taxation tax treaty that had linked the country with France since February 15, 1967.
“The government denounces the double taxation agreement signed on August 11, 1965 between Burkina Faso and the French Republic, which entered into force on February 15, 1967, including its amendment signed on June 3, 1971, which entered into force on October 1, 1974,” reads the press release signed by the head of Burkina Faso’s diplomatic service, Olivia Rouamba.
She explained that “this denunciation is the consequence of the refusal” of the French to renegotiate the details of the agreement.
In January 2020 and at the end of 2021, Burkina Faso submitted requests to negotiate the 1965 tax convention, but France had “remained silent.”
For the Minister of Foreign Affairs, the transitional government has no choice but to terminate the treaty.
She specified that “the present denunciation will take effect within three (03) months of receipt of this notification.”
The strict measure Burkina Faso took will be a serious blow for French multinationals, established in Burkina. All French income derived from activities carried out on Burkina Faso will now be taxed.
This denunciation comes 48 hours after France suspended all development aid and budgetary support to Burkina following the support given by the Burkinabe military junta to the National Committee for the Defence of the Homeland (CNSP), which overthrew Mohamed Bazoum in Niger on July 26.
