Botswana

Corporate - Withholding taxes

Last reviewed - 25 March 2022

WHT, at the following rates, must be deducted from payments to residents and non-residents unless a DTA exists.

Residents WHT rate (%)
Dividends 10
Interest 10
Payments due under certain construction contracts 3
Payments made for livestock purchased for purposes of slaughter or feeding for slaughter 4
Non-residents WHT rate (%)
Dividends 10
Interest 15
Payments due under certain construction contracts 3
Payments made for livestock purchased for purposes of slaughter or feeding for slaughter 4
Payments for royalties, management, or consultancy fees 15
Payments for entertainment fees 10

All rent and commission or brokerage payments to residents or non-residents are subject to WHT at 5% and 10%, respectively, where the total payment is BWP 48,000 per annum or more.

Botswana has tax agreements with the following countries, which provide for WHT at the rates shown.

Recipient WHT (%)
Dividends Interest Royalties Management and consultancy fees
Barbados 5/10 (1) 10 10 10
Belgium 5/12(1) 10 8/10(2) 7.5
China 5 7.5 7.5 -
Czech Republic 5 7.5 7.5 7.5
eSwatini 10/15(1) 10 10 10
France 5/10 (1) 10 10 7.5
India 7.5/10(1) 10 10 10
Ireland 5 7.5 5/7.5(2) 7.5
Kenya 7.5 12.5 12.5 10
Lesotho 10/15(1) 10 10 10
Luxembourg 5/10(1) 7.5 7.5 7.5
Malawi 5/8(1) 10 12 10
Malta 5/6(1) 15(3) 8.5 5/7.5(2) 7.5
Mauritius 5/10 (1) 12 12.5 15
Namibia 10 10 10 15
Russia 5/10 (1) 10 10 10
Seychelles 5/105 (1) 7.5 10 10
South Africa 10 10 10 10
Sweden 10 15 15 15
United Arab Emirates 5/7.5(1) 7.5 7.5 5
United Kingdom 5/10 (1) 10 10 7.5
Zambia 5/10 (1) 10 10 10
Zimbabwe 5/10 (1) 10 10 10

Notes

  1. The 5%/7.5%/10% rate of WHT is applicable if the beneficial shareholder is a company resident in the DTA country and holds at least 25% of the share capital in the company paying dividends (in relation to United Arab Emirates, at least 10% of the share capital in the company paying dividends). Otherwise, the other rate applies. In relation to Belgium, the 5% rate of WHT also applies if the beneficial owner is a pension fund.
  2. The 5% rate of WHT is applicable if royalties are in respect of the use of or the right to use industrial, commercial or scientific equipment.
  3. The 15% rate of WHT is applicable where the dividends are paid by a company with a tax benefit under Malta law that is resident in Malta to a beneficial owner resident in Botswana.