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Impostos a Botswana

Tax Rates

Consumption Taxes

Nature of the Tax
Value-added tax (VAT)
Tax Rate
14% (from 1 April 2021; 12% before that date)
Reduced Tax Rate
No reduced rates are available. Nevertheless, several items are exempt from VAT while others are zero-rated.
Exempt goods and services include: medical services provided in a public medical facility; supply of prescription drugs; education; some agricultural farming implements; financial services (unless provided for a fee, charge or commission).
Zero-rated goods and services include: exports of goods and services; international transport; sale of a business as a going concern to a registered person; fuel for vehicles; illuminating paraffin; sorghum and maize meal for human consumption; bread flour, sugar, brown bread, fresh fruits, rice, milk and samp (coarsely ground corn); intellectual property rights for use outside Botswana; household consumption of water up to 5,000 liters or 25 drums of 200 liters.
Other Consumption Taxes
Customs and excise duties apply to the importation of goods (including currencies). Anti-dumping and countervailing duties may also apply in addition to customs and excise duties. Supplies traded within the Southern African Customs Union (Botswana and South Africa, Lesotho, Namibia, and Swaziland) are exempt from customs and excise duties.
 
Find out more about Taxes and Accounting in Botswana on GlobalTrade.net, the Directory for International Trade Service Providers.
 

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Corporate Taxes

Company Tax
22%
Tax Rate For Foreign Companies
Botswana has a source-based taxation system. Non-resident companies are taxed on their Botswana-sourced income at a rate of 30%.
A company is resident in Botswana if it is incorporated or managed and controlled in the country.
Capital Gains Taxation
Capital gains are included in taxable income and imposed at the standard corporate tax rate. Where capital gains arise from the sale of shares, only 75% of the net aggregate gain is taxable. Gains from shares that are listed on the Botswana Stock Exchange (BSE) are tax-exempt if the seller holds at least 49% of the shares for at leasat one year prior to the disposal. Gains from the disposal of International Financial Services Centre (IFSC) shares are exempt from tax.
Main Allowable Deductions and Tax Credits
Expenditures incurred on machinery and equipment before 30 June 1982 can be claimed up to 100%. Deduction for expenditures incurred after this date is calculated on the cost by the straight-line method on the basis of the expected useful lives of the individual assets. An initial allowance of 25% is granted for the improvement of certain industrial buildings. A separate allowance of 2.5% is extended to all industrial and commercial buildings based on cost or, for industrial buildings on which an initial allowance had been claimed, the original cost less the initial allowance. Mining companies qualify for a standalone mining capital allowance calculated in accordance with 100% of the mining capital expenditure made in the year in which such expenditure was incurred. Amortisation of goodwill and start-up expenses are not tax-deductible.
Interests paid to a resident are deductible whereas those paid to a non-resident can be deducted in the year when the relevant withholding tax on interest has been remitted to the Botswana Unified Revenue Service. Bad debts that are written off are tax-deductible.
Charitable contributions are tax-deductible (capped at 20% of taxable income). Donations must be made to educational institutions recommended by the Ministry of Education or sports clubs or sports associations recommended by the Ministry of Youth, Sport and Culture and approved by the Commissioner-General.
Fines and penalties cannot be deducted for tax purposes.
Net operating losses can be carried forward up to five years. Mining companies can carry forward their losses indefinitely. Carryback of losses is not permitted.

Special tax allowances include:
- Training allowance – 200% of expenditure which is not funded by the Botswana Qualification Authority
- Construction of dwellings for employees of any business other than mining – BWP 25,000 per house
- Industrial buildings – 25% initial allowance and 2.5% annual allowance on the cost of construction or purchase of new buildings or on any improvements
- Mining capital allowances – 100% of mining capital expenditure allowed as a deduction in the year of expenditure
- Plant and machinery – Heavy civil engineering plant used directly in construction and self-propelled portable plant or machinery used directly in manufacture or production, 25% per annum; other industrial plant or machinery used directly in manufacture or production, 15% per annum; other plant and machinery, 10% per annum
- Aircraft and motorised road vehicles – 25% per annum
- Computers – 25% per annum
- Farming – Companies engaged in farming operations are entitled to special deductions in relation to the following items of capital expenditure: a farm development expenditure, deductible in the tax year in which it is incurred, for costs incurred in developing farming land for producing farming income; expenditure incurred on various activities, including the prevention of soil erosion, sinking of boreholes and wells, the construction of irrigation channels, fencing and the building of roads, bridges or airstrips used in connection with the farming operations; the cost of the establishing trees, plantations, orchards and vineyards; expenditure incurred on the construction of buildings (other than dwelling houses); farming assessed losses may be carried forward for five years.

Other Corporate Taxes
A Vocational Training Levy (VTL) is due by every taxpayer who is registered for VAT, with rates from 0.05% to 0.2% of annual turnover.
Capital transfer tax is levied on the beneficiary at a rate of 12.5% upon the transfer (through inheritance or gratuitous disposal of property) of tangible or intangible, movable or immovable, property. Transfer duty is levied on the value of immovable freehold and leasehold property at a rate of 5%. The first BWP 1 million of the sale value is exempt from tax if the property is transferred to a citizen of Botswana. Transfer duty rate goes up to 30% for agricultural property (5% if the beneficiary is from Botswana).
There are no stamp duty, social security contributions or property taxes in Botswana.
Other Domestic Resources
Botswana Unified Revenue Service
Consult Doing Business Website, to obtain a summary of the taxes and mandatory contributions.

Country Comparison For Corporate Taxation

  Botswana Sub-Saharan Africa United States Germany
Number of Payments of Taxes per Year 34.0 36.6 10.6 9.0
Time Taken For Administrative Formalities (Hours) 120.0 284.8 175.0 218.0
Total Share of Taxes (% of Profit) 25.1 47.3 36.6 48.8

Source: Doing Business, Latest available data.

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Individual Taxes

Tax Rate

Income Tax (for residents) Progressive rates up to 25%
From BWP 0 to 36,000 0%
From BWP 36,001 to 72,000 5%
From BWP 72,001 to 108,000 12.5% + BWP 1,800
From BWP 108,001 to 144,000 18.75% + BWP 6,300
Above BWP 144,000 25% + BWP 13,050
Income Tax (for non-residents) Progressive rates up to 25%
From BWP 0 to 72,000 5%
From BWP 72,001 to 108,000 12.5% + BWP 3,600
From BWP 108,001 to 144,000 18.75% + BWP 8,100
Above BWP 144,000 25% + BWP 14,850
Allowable Deductions and Tax Credits
Business-related expenses are not deductible (except for those incurred as a condition of employment or for the purpose of producing the employee's income). When no gratuity is provided to the employee, deductions for contributions to an approved retirement benefit scheme are allowable up to a maximum of 15% of earned income.
There are no other standard tax deductions for individuals.
Individuals with business income are entitled to the same deductions as are granted to companies.
Special Expatriate Tax Regime
Botswana has a territorial system of taxation. An individual is deemed to be resident if he/she has a permanent place of abode in Botswana and is physically present in the country for not less than 183 days in that tax year or the previous tax year.
The income of non-residents is subject to different tax brackets (see the individual taxation section). Non-residents pay withholding tax at the following rates for locally-sourced income: 15% for interest, commercial royalties, and management and consultancy fees, 7.5% for dividends, and 10% for entertainment fees.

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Double Taxation Treaties

Countries With Whom a Double Taxation Treaty Have Been Signed
See the list of Double Taxation Avoidance Agreements signed by Botswana
Withholding Taxes
Dividends: 7.5%, Interest: 10 (residents)/15% (non-residents), Royalties: 15%
Bilateral Agreement
Bostwana and Spain are not bound by a Double Taxation Agreement.

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Sources of Fiscal Information

Tax Authorities
Overview of Botswana's tax measures in response to Covid-19
Botswana Unified Revenue Service
Other Domestic Resources
Ministry of Finance

Find out more about Taxes and Accounting in Botswana on GlobalTrade.net, the Directory for International Trade Service Providers.

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Actualitzacions: April 2022

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