Gaborone
EY
+267 365-4000
Mail address: Fax: +267 397-4079
Postal deliveries to this address only.
P.O. Box 41015
Gaborone Botswana
Street address: 2nd Floor
Khama Crescent
Gaborone Botswana
Principal Tax Contact
Langton Madzamba
Business Tax Advisory
Langton Madzamba
+267 365-4003
Mobile: +267 7476-6888
Email: langton.madzamba@za.ey.com
+267 365-4003
Mobile: +267 7476-6888
Email: langton.madzamba@za.ey.com
International Tax and Transaction Services – Transaction Tax Advisory Langton Madzamba
+267 365-4003
Mobile: +267 7476-6888
Email: langton.madzamba@za.ey.com
A. At a glance
(a) For approved manufacturing companies, the rate is 15%.
(b) See Section B.
(c) This tax is imposed on gross receipts derived from construction contracts. This tax is an advance payment that may be offset against the actual tax due.
(d) This tax is an advance payment that may be offset against the actual tax due.
Capital allowances are subject to recapture on the sale of an asset to the extent that the sales proceeds exceed the tax value after depreciation.
Mining companies may deduct 100% of their mining capital expenditure (as defined) in the year in which the expenditure is incurred.
Relief for losses. In general, tax losses may be carried forward for five years. Mining and prospecting losses may be carried forward indefinitely.
D. Other significant taxes
The following table summarizes other significant taxes.
Nature of tax
Value-added tax, on almost all supplies of goods and services consumed in Botswana 14 Capital transfer tax, paid by the recipient on all gratuitous receipts of property, corporate shares and inheritances, less allowable deductions
E. Miscellaneous matters
Foreign-exchange controls. No foreign-exchange controls are imposed in Botswana. However, certain forms must be completed for statistical purposes.
Transfer pricing. Botswana introduced transfer-pricing legislation in December 2018 that is effective from 1 July 2019. The regulations, which are based on the Organisation for Economic Co-operation and Development (OECD) Guidelines, cite the OECD guidelines as a relevant source of interpretation of the regulations.