Burundi's National Assembly, led by its president Gélase Daniel Ndabirabe, unanimously adopted two conventions with the United Arab Emirates on Tuesday, May 12, 2026. The conventions, originally signed on February 6, 2017, address the prevention of double taxation and fiscal evasion, alongside the promotion and reciprocal protection of investments. Deputies approved the two draft laws following a process that included substantive and formal amendments. This legislative action, marked by a unanimous vote, shows strong parliamentary support for strengthening economic ties between Burundi and the Emirats arabes unis. The consensus reached in the National Assembly reflects a shared national interest in fostering a more strong and predictable economic relationship with the United Arab Emirates.
Investment Framework Goals
The conventions are considered key for establishing a legally secure and stable investment framework, according to official statements. This framework aims to stimulate commercial initiatives and increase exchanges and capital mobility between Burundi and the United Arab Emirates. The agreements also seek to foster a more predictable environment for investors from both nations, providing clarity and confidence in cross-border transactions. By setting clear guidelines and protections, these instruments are expected to mitigate risks typically associated with international investments, thereby encouraging greater participation from the private sectors of both countries. The overarching goal is to create a mutually beneficial economic ecosystem that supports long-term growth and development.
The agreement on reciprocal investment promotion and protection, alongside the tax convention against double taxation, are described as complementary legal tools. These instruments are designed to work in conjunction to create an attractive and reliable climate for businesses. The integrated approach ensures that investors benefit from both safeguards against expropriation and clear tax regulations, reducing financial uncertainties for cross-border investments. This full legal framework is anticipated to enhance the ease of doing business and attract foreign direct investment into key sectors of Burundi's economy, while also facilitating Burundian investments in the UAE.
Tax Convention Details
The tax convention outlines four primary axes designed to prevent double taxation of income and combat fiscal evasion. These axes define the specific taxes and individuals covered by the agreement, establish the concept of a stable establishment and its taxation modalities, detail the methods for taxing persons and income, and set forth procedures for eliminating double taxation. These four major axes were meticulously determined to achieve the objectives of non-double taxation of income and fiscal evasion, providing a strong structure for financial interactions. The clarity provided by these detailed provisions is expected to streamline tax compliance and reduce disputes between tax authorities of the two nations.
Among the modalities for income taxation addressed in the convention are provisions concerning company profits, dividends, and income generated from real estate. The agreement also specifies taxation rules for employment income and various other categories of earnings, aiming to provide a full framework for financial interactions between the two nations. This detailed approach ensures that a wide array of income sources is covered, providing predictability for businesses and individuals engaged in cross-border economic activities. The convention's provisions are designed to ensure equitable taxation while avoiding situations where the same income is taxed twice in both jurisdictions.
Ministerial Rationale
Minister Edouard Bizimana stated that the agreements, once ratified, are expected to serve as significant levers for economic attractiveness. He further indicated that the conventions would function as essential tools for promoting investment across various sectors. The minister emphasized that these instruments would actively contribute to attracting capital and fostering economic development within the region. Minister Bizimana specifically noted that once ratified, the conventions will be used as vital tools for investment promotion. He showed their potential to unlock new economic opportunities and diversify Burundi's economic partnerships, thereby enhancing its global economic integration.