BOTSWANA INCOME TAX LEGISLATION

BOTSWANA INCOME TAX LEGISLATION

DIRECT TAXES (INCOME TAX)
Botswana is a source-based country. Tax in Botswana is charged progressively. The gross income of every person is the total amount, whether in cash or otherwise, accrued or deemed to have accrued to that person in that tax year from every source situated or deemed to be situated in Botswana but does not include any amounts of capital nature.



According to Botswana Income Tax Act, an amount, which accrues to person, is deemed to have accrued –
(a) in case of employment, at the time it is:
(i) received by that person;
(ii) due and payable, even though not actually paid to him; or
Credited in account, reinvested, accumulated, capitalized, carried to reserve or otherwise disposed
(b) in case of business, in relation to which the Commissioner is satisfied that a commercially recognized system of accounting is regularly followed, at the time it is credited in the books of account of such person; or
(c) In any other case, at the time it becomes due and payable to the person.

AMOUNTS DEEMED TO BE BOTSWANA SOURCED
An amount accrued to any person is deemed to have accrued from a source situated in Botswana where it has accrued to such person in respect of:
(a)   any contract made by such person in Botswana for sale of goods, whether such goods have been or are to be delivered in or out of Botswana;
(b) any service rendered or work done by such person in Botswana, whether the payment thereof is made by a resident or a non-resident and wherever payment is made.
(c)  any service rendered or work done out of Botswana:
(i) by such person under a contract of employment with the Government,
(ii) by such person, being a resident, for or on behalf of his employer in Botswana during that person’s temporary absence from Botswana, whether the payment for such service rendered or work done is made by a resident or a non resident and wherever the payment is made;
(d) any pension, bonus, gratuity or compensation granted to such person in respect of past services-
i) by the Government; or
ii) where such past services were performed in Botswana by any other persons, and wherever payment is made or the funds from which payment is made are situate.
Where any pension, bonus, gratuity or compensation is payable in respect of
(e)  any business carried on by such person, being a resident, as the owner or character on any aircraft, whether such aircraft may be operated;
(f) Any service rendered or work done out of Botswana by such person, being a resident, as an officer or a member of the crew of any aircraft referred to in paragraph above statement whenever payment is made;
 The disposal by such person of any interest in mineral rights over land situate in Botswana or the disposal of any share or interest in the capita)  any business carried on by such person, being a resident, as the owner or character on any aircraft, whether such aircraft may be operated;
(g) The disposal by such person of any interest in mineral rights over land situate in Botswana or the disposal of any share or interest in the capital or l or

(h) The disposal by such person of mining or prospecting information or mining or prospecting rights over land situate in Botswana or any investment made outside Botswana or any business carried on outside Botswana by a resident of Botswana