Corporate - Tax credits and incentives

Last reviewed - 25 September 2023

To encourage investment in Botswana, extra tax relief on revenue or capital accounts will be granted for specific business development projects if the government is satisfied that such projects are beneficial to Botswana.

Selibe Phikwe Economic Development Unit (SPEDU) region incentive

Companies operating a qualifying business in the SPEDU region are taxed at a company tax rate of 5% for the first five years of the business operation and thereafter at a special rate of 10%. These rates will only apply after approval from the Ministry of Finance and Economic Development, and a Development Approval Order should be obtained in order to qualify for the special rate. 

The SPEDU region covers the following areas:

  • Selebi-Phikwe.
  • Bobonong.
  • Mmadinare - Sefhophe.
  • Lerala - Maunatlala.
  • Neighbouring villages, farms, and cattle posts.

Businesses in the following sectors are eligible to apply for concessionary CIT rates:

  • Agriculture.
  • Manufacturing.
  • Tourism.

Foreign tax credit

A credit for the foreign WHT payable is permitted under domestic law. The credit, which is offset against the tax charged in Botswana, shall be the lessor of (i) the tax payable in the foreign country or (ii) the tax charged under the Botswana Income Tax Act on such amount.