Regulatory Alerts2025-06-01
Ministerial Order No. 540/12.59 of April 1, 2025 on the Tax Treatment of Credit-Lease Operations
The Burundi Ministry of Finance, Budget and Economic Planning issued Ministerial Order No. 540/12.59 on April 1, 2025, to standardize the tax treatment of credit-lease operations for existing and future contracts. The Order mandates authorized financial institutions to submit proof of asset allocation and lessee documentation, declare VAT suspension within fifteen days, and maintain separate accounting to validate depreciation deductions. It further requires lessees to calculate amortization based on contract duration and initial asset value, subjecting undue deductions to fiscal readjustment and penalties.
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