Botswana: Business Environment
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.
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.
Income Tax (for residents) | Progressive rates up to 25% |
From BWP 0 to 48,000 | 0% |
From BWP 48,001 to 84,000 | 5% |
From BWP 84,001 to 120,000 | 12.5% + BWP 1,800 |
From BWP 120,001 to 156,000 | 18.75% + BWP 6,300 |
Above BWP 156,000 | 25% + BWP 13,050 |
Income Tax (for non-residents) | Progressive rates up to 25% |
From BWP 0 to 84,000 | 5% |
From BWP 84,001 to 120,000 | 12.5% + BWP 4,200 |
From BWP 120,001 to 156,000 | 18.75% + BWP 8,700 |
Above BWP 156,000 | 25% + BWP 15,450 |
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Latest Update: September 2023