Botswana

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

Resident/non-residents

• Rent: WHT at 5% on payment of rent, except where the rent is paid by an individual and such rent is not claimed or will not be claimed as a business expenditure by that person. Furthermore, WHT is not applicable where the rent paid by a person for any property is less than P48,000 during any tax year, or for payments for accommodation in a hotel, motel, lodge, or guesthouse.
• Commission or brokerage payments to residents or non-residents are subject to WHT at 10%. If the commission paid for the procurement of goods or services to a resident individual is less than P48,000 during any tax year, no WHT is deductible.

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

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.