Tax
Source-based income tax with a 22 per cent company rate and BURS administration
Botswana taxes on a source basis rather than on worldwide residence income, which is the single most important structural feature. The general company rate is 22 per cent, with manufacturing and IFSC-approved companies at 15 per cent. VAT is charged at 14 per cent and administered, with income tax, by the Botswana Unified Revenue Service.
Key rules
- Jurisdiction — BURS assesses; objections go to the Commissioner General; appeals lie to the Board of Adjudicators and then the High Court.
- Deadline — Company return: within 4 months of financial year end
- Deadline — VAT return: bi-monthly or monthly depending on turnover
Governing law
- Income Tax ActCap 52:01
- Value Added Tax ActCap 50:03
- Botswana Unified Revenue Service ActCap 53:03
In practice
Source taxation combined with the IFSC regime is why Botswana appears in regional holding structures: foreign-source income of a Botswana company can fall outside the charge entirely, which is a different planning proposition from a residence-based system such as South Africa's.