Botswana - Taxation

The corporate tax rate in 2002 was 25%, consisting of 15% company tax and 10% surcharge. For manufacturing companies, approved as such by the Minister of Finance, a reduced rate of 15% (5% company tax and 10% surcharge) applies. A withholding tax of 15% is assessed on the payment of all dividends and on the payment of interest on offshore loans. Taxes on such capital income may be reduced or eliminated in double taxation treaties. In 2002 Botswana had tax treaties with South Africa, the United Kingdom, Sweden and Mauritius. The capital gains rate is the same as the corporate tax rate and is assessed on 100% of the gains from real estate transactions and on 50% of the gains from transactions in moveable property, including the sale of shares in a company. However, capital gains from the sale of shares of a company listed on the Botswana Stock Exchange are tax-exempt.

The income tax law establishes for individual incomes progressive rates ranging up to 25%, reduced from 30%. A local government tax is paid to the district or town council to finance social and sanitary services.

As of 7 January 2002 a value-added tax (VAT) with a standard rate of 10% replaced Botswana's 10% sales tax which was imposed on fuel, liquor, cigarettes, motor vehicles, computers, domestic electrical appliances, and other consumer and luxury goods.

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Feb 17, 2009 @ 3:03 am
I have gone through the tax which you have put forward and hence came with the following suggestions :
a)withholding tax is to much hence this tool is to induce investors to invest more by putting 15% we curtail such investments and the country gets a few investors who are already established .
b)the surcharge if only it can be reviewed will go along way in boosting investmet in this time of reccession .
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Aug 3, 2011 @ 8:08 am
Residents - do Resisidents pay income tax on foreign income whether transffered to their botswana bank account or not...?
robert james
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Dec 6, 2012 @ 12:12 pm
How does the VAT refund system work .If you are a VAT Registrant and you have not made any taxable supplies during a particular tax period are you still entitled to a credit/refund on the input tax incurred for that period? or do you actually have to make a taxable supply before you are entitled to a refund?

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