Taxation of non-residents in Botswana

Application of Income Tax to Foreign Income of a Resident

Income from any investment made outside Botswana or any business carried on outside Botswana by a resident of Botswana is deemed to be sourced in Botswana and is taxable in Botswana.  If the income was taxed in the country where business is located or situated then a credit will be given and then the income will be still taxable in Botswana provided there is a double taxation avoidance agreement between Botswana and the jurisdiction where the income was sourced.  This does not apply to foreign investment income of non-citizens resident in Botswana.

Taxation of non-residents in Botswana

The taxable income of a non-resident is charged to tax on an agent in the same amount as would have been charged on the non-resident. An agent should be related to the non resident in the sense that the agent is a resident in Botswana and has the management and control of property in Botswana of such non-resident or who is appointed by a non–resident to act on his behalf.

Income of non- residents: