Global

Details

  • Service: Tax, International Corporate Tax, Global Indirect Tax, International Executive Services, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 3/19/2013

Botswana - 2013 budget proposals, overview of tax system 

March 19:   Botswana’s annual budget was presented on 4 February 2013 and includes various tax measures.  The KPMG member firm in Botswana has provided an overview of the tax system in conjunction with highlights from the budget speech.

Tax measures in 2013 budget

The budget includes tax measures that would:


  • Enhance transparency and exchange of information between Botswana and other tax jurisdictions
  • Provide that the 10% withholding tax on bank and building society interest, in excess of the exempt amount of P7,800* (approximately US $945) per annum, payable to resident individuals is to be a final tax
  • Change the threshold for the 25% individual capital gains tax rate to P144,000 (approximately US $17,450)
  • Increase the maximum penalty chargeable for failure to file a “nil” or “refund” value added tax (VAT) return from zero of P5,000 (approximately US $600)
  • Expand the definition of capital goods to include mining capital expenditure

*The pula (P) is the currency in Botswana. P1 is approximately US $0.12.

Tax system overview

The KPMG member firm’s tax reference guide provides tax rates for corporate and individual taxpayers, as well as provisions concerning value added tax (VAT), tax exemptions, and other information.


Read the February 2013 report [439 KB] prepared by the KPMG member firm in Botswana: Botswana Tax and Budget Summary 2013/2014




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