Global

Details

  • 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




©2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.


The KPMG logo and name are trademarks of KPMG International.


KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever.


The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.


Direct comments, including requests for subscriptions, to us-kpmgwnt@kpmg.com.
For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at:

+ 1 202 533 4366

1801 K Street NW
Washington, DC 20006.

 

Share this

Share this

Subscribe

Subscribe to receive the latest TaxNewsFlash email alerts (you must select the option for TaxNewsFlash)


Already a Subscriber? Login


Not a member? Subscribe now