Botswana legal and accounting and tax considerations in 2024

Legal requirements for Botswana business

  1. The standard corporate tax rate levied on all net profits derived from Botswana is 22%. The tax year is from 1st of July to 30th June and tax returns are filed quarterly. Failure to comply will attract a penalty of 1.5% interest per month;
  2. Branches pay a standard corporate tax rate of 30% and manufacturing companies pay 15%. There is no branch remittance tax;
  3. The standard VAT rate levied on provision of goods and services in Botswana is 12%. Filing and payment is done every month. Tax on exports is zero rated;
  4. Capital gains tax is levied at variable rates up to 25%;
  5. Withholding tax levied on interest, royalties and technical services fees paid to non-residents is at the rate of 15%. The withholding tax levied on dividends is 7.5% while rent is taxed at the rate of 5% and brokerage fees and commissions are charged withholding tax of 10%;
  6. There is no payroll tax or capital duty tax in Botswana. Furthermore, the employer is not required to submit social security contributions for employee’s salary income;
  7. Losses may be carried forward for five years;
  8. Duty levied on transfer of immovable property and all property sales is 5% and a capital transfer tax of 12.5% is levied on transfer of assets;
  9. Botswana has signed double tax treaties on withholding tax rates with 12 countries including France, Russian Federation, Seychelles, South Africa, Sweden, Barbados, India, Mozambique, Zimbabwe, Namibia and the United Kingdom;
  10. Healy Consultants Compliance Department will assist our Clients with i) documenting and implementing accounting procedures ii) implementing financial accounting software iii) preparation of financial accounting records and iv) preparing forecasts, budget and sensitivity analysis;
  11. It is important our Clients’ are aware of their personal and corporate tax obligations in their country of residence and domicile; and they will fulfill those obligations annually. Let us know if you need Healy Consultants’ help to clarify your annual reporting obligations.

Contact us

For additional information on our accounting and tax services in Botswana, please contact our in-house country expert, Mr. Seth Ochieng, directly:
Director of Client Engagements - Seth
  • Mr. Seth Ochieng
  • Senior Manager, Client Relations
  • Get in touch