Tax Summary

Botswana
Tax Indicators

Residents

Non-residents

Fiscal year-end

June

June

Income tax

22%1

30%1

Tax on capital gains

22% (16.5%)2

30% (22.5%)2

General sales tax

Not applicable

Not applicable

Companies

Value-added tax

12%

12%3

Individuals
Individual marginal tax rate (maximum)

25%

25%

Basis of taxation

Source4

Source

Withholding tax
Dividends

7.5%

7.5%

Contacts

Interest

10%6

15% 5

For more detailed information, please

contact your tax services team:

Royalties

n/a

15% 5

Rent

5%

5%

Management fees

Not applicable

15% 5

Construction contracts

3%

3%

Entertainment fees

Not applicable

10%

Brokerage fees/Commission

10%

10%

Exchange controls

Do not exist

Do not exist

South Africa (Africa Desk)

Thin capitalisation

Thin capitalisation rules apply specifically in relation to the taxation of mining companies and IFSC

Jelle Keijmel
+27 11 797 5990
jelle.y.keijmel@za.pwc.com

Transfer pricing

There are no specific transfer pricing rules but general anti-avoidance provisions exist

Double tax treaties

Barbados, France, India, Mauritius, Namibia, Russia, Seychelles, South Africa, Sweden, UK and

Botswana
Butler Phirie
+267 395 2011
butler.phirie@bw.pwc.com
Motswagosele Moagaesi

+267 395 2011

motswagosele.moagaesi@bw.pwc.com

Ibikunle Olatunji
+27 11 797 5317
ibikunle.x.olatunji@za.pwc.com
Norman Mekgoe
+27 11 797 5405
norman.mekgoe@za.pwc.com

Zimbabwe
Treaties awaiting conclusion and/or ratification

None

(1) The income tax rate for manufacturing and International Financial Services Companies (IFSC) is 15%.
(2) The effective capital gains tax rate on sale of shares for both resident and non-resident companies are 16.5% and 22.5% respectively (some exemptions apply).
(3) A training levy applies at 0.2% of turnover of less than P2 billion and 0.05% of turnover in excess of P2 billion. This is in addition to the VAT payable.
(4) Interest and dividend income from a foreign source is also deemed to be from a Botswana source when earned by residents.
(5) Withholding tax on payments made to a resident of a country that has a double taxation agreement (DTA) with Botswana could range from 5% to 15% depending
on the applicable DTA; otherwise a non-reduced rate applies.
(6) Interest accrued from a bank or building society and which is subjected to WHT at the rate of 10% is final tax.

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Africa Desk