TAX RATES

BOTSWANA INVESTMENT POLICY

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TAX RATES

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		RESIDENT INDIVIDUALS*					CAPITAL GAINS TAXATION^a							CAPITAL TRANSFER TAX^a
		Taxable Income Over	Taxable Income Not Over	Tax on Lower Amount	Rate on Excess		Net Agg Gains Over	Net Agg Gains Not Over	Tax on Lower Amount	Rate on Excess		Taxable Value Over	Taxable Value Not Over		Tax on Lower Amount	Rate on Excess
		P	P	P	%		P	P	P	%		P	P		P	%
		0	20 000	0	0		0	10 000	0	0		0	100 000		0	2
		20 000	35 000	0	5		10 000	35 000	0	5		100 000	300 000		2000	3
		35 000	50 000	750	10		35 000	50 000	1 250	10		300 000	500 000		8 000	4
		50 000	65 000	2 250	15		50 000	65 000	2 750	15		500 000			16 000	5
		65 000	80 000	4 500	20		65 000	80 000	5 000	20
		80 000		7 500	25		80 000		8 000	25

		NON-RESIDENT INDIVIDUALS*					WITHHOLDING TAXES						PROJECT BANDS¹
		0	35 000	0	5			Dividends	Interest	Com.Roy	Mgmnt Consult Fees		Scale	Investment in Fixed Assets
		35 000	50 000	1 750	10		Mauritius	10(a)	12	12.5	15
													Small		less than P 75,000
		50 000	65 000	3 250	15		South Africa	15	15	15
		65 000	80 000	5 500	20		Sweden (b)	15	15	15	15		Medium	over P 75,000	less than P2,000,000
		80 000		8 500	25		U.K.	15	15	15
													Large	over P2,000,000

Notes:

* an individual is resident if he / she: -

a) is physically present in Botswana for not less than 183 days, in aggregate, in a tax year.
(b) maintains a permanent place of abode in Botswana and is present in Botswana for not less than 183 days including temporary absence for business, recreation or similar purpose.
(c) physically present in Botswana and such period is continuous with a period for which he is treated as resident.

CGT^aIndividuals

CGT^b. For companies, the normal company rate apply.

INDIVIDUAL INCOME TAX DEDUCTIONS

Pension or Retirement annuity contributions to a Botswana approved fund. The lesser of

(a) Actual contribution,
(b) 15% of total income excluding dividends interests and capital gains;
(c) P9000

CTT^aIndividuals

CTT^b Companies Resident and Non Resident Companies 12.5%

WT(a) If the beneficial owner is a company holding at least 25% of the shares, the rate is 5%

WT(b) If Botswana negotiates a lower rate with any other country, then such lower rate will apply to Sweden as well.

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