Chapter 7: Tax Exemptions

International Leadership University- Burundi

Lecturer: Patrick Rumeci
UCC 213: Principles of Taxation
Academic Year: 2020-2021
 DEFINITION
Monetary exemption reducing taxable income.
Complete relief from taxes.
Reduced rates.
Tax on only a portion of items.

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TAX EXEMPTION VS. EXCLUSION
Statutory exception to a general rule.
Exclusion= mere absence of taxation in particular
circumstances.

UCC 213 Principles of Taxation 3

 TAX EXEMPTION VS. DEDUCTION
Removal from taxation of a particular item. In other
words, exclusion, albeit by law.
Subtraction based on a condition.

UCC 213 Principles of Taxation 4

 TAX EXEMPTION IN BURUNDI
Property/Real Estate tax.
Vehicle tax.
Income tax.
VAT and tariffs.

UCC 213 Principles of Taxation 5

 TAX EXEMPTION-PROPERTY/REAL ESTATE
Property owned by the State and the local
governments.
Property owned by physical persons with an annual
income under 36,000 BIF.
Property coming under ratified international
convention, provided that there is a reciprocity.
Use of the property (E.g.: agriculture or public
education).

UCC 213 Principles of Taxation 6

 TAX EXEMPTIONS-VEHICLE
Vehicles belonging to the State.
Vehicles coming under ratified international
convention, provided that there is a reciprocity.
Vehicles for emergency (E.g.: police car, ambulance,
etc…).

UCC 213 Principles of Taxation 7

 TAX EXEMPTIONS-INCOME
Monthly income <= 150,000 BIF exempted from
taxation.
Other exemptions depending on the laws (E.g.: Rent
not exceeding 60% of the base salary).

UCC 213 Principles of Taxation 8

TAX EXEMPTIONS – VAT AND TARIFFS
Insurance-related operations or financial operations
related to credit, foreign exchange, and investment.
Medical operations.
Medicine.
Education.
Importation of goods from countries having a customs
agreement with Burundi.

UCC 213 Principles of Taxation 9