Corporate - Taxes on corporate income

Last reviewed - 19 April 2024

Botswana has a source-based taxation system.

CIT is charged at a single flat rate of 22%. Manufacturing companies having the approval from the Minister of Finance for a special tax rate will be charged at the rate of 15%.

International Financial Services Centre (IFSC) profits

IFSC companies are currently taxed at the rate of 15% on income arising from approved financial transactions with non-residents, IFSC companies, and Specified Collective Investment Undertakings. All other income is taxable at the rate of 22%. Companies must apply for a certificate to be classified as IFSC companies, which deal only in specified services with qualified persons.

Mining profits

Mining profits, other than profits from diamond mining, are taxed according to the following formula:

Annual tax rate = 70 minus (1,500/x), where x is taxable income as a percentage of gross income.

The tax rate shall not be less than the flat CIT rate of 22%.

Diamond mining

Diamond mining is usually taxed in terms of an agreement with the government of Botswana.

Local income taxes

There are no local, state, or provincial government taxes on income in Botswana.