• Service: Tax, Global Indirect Tax, International Executive Services, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 3/12/2014

Botswana - Tax proposals in 2014-2015 budget 

March 12:  Botswana’s 2014-2015 budget includes proposals to expand the tax revenue base and simplify the tax regime. Among the tax proposals are measures providing that:
  • Income from, or deemed to be from a source within Botswana would be taxable in Botswana.
  • Income accruing from different related businesses would be deemed to accrue from one business (except capital gains and income from farming and mining).
  • Special provisions would allow for the set-off by individuals of farming losses against other income, up to 50% of the other-source income.
  • Farming, mining and prospecting income/losses and capital gains/losses would be determined separately.
  • Normal business expenses wholly, exclusively and necessarily incurred in the production of assessable income would be allowed as deductions.
  • A deduction of expenditure relating to interest, royalties management or consultancy fees paid or payable to non-residents would be allowed in the year in which the related withholding tax is remitted to the tax authority.
  • Specific deductions would be allowed for capital allowances, lease improvements, bad debt provisions, contributions to an approved mine rehabilitation fund, approved citizen training expenditure (if not reimbursed by the government), and approved pension fund contributions.
  • Assessed losses from business could be carried forward for no more than five years, except for farming, mining and prospecting losses, which could be carried forward indefinitely.
  • Capital losses could be carried forward for one year only.
  • Special provisions would apply to “international services centre” companies, approved manufacturing entities, and approved mining businesses.

Read a February 2014 report [PDF 487 KB] prepared by the KPMG member firm in Botswana: Botswana Tax and Budget Summary 2014 / 2015

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