Botswana Corporate Income Tax

Company tax rates

The standard company tax rate is a flat 22%. Approved manufacturers and IFSC companies enjoy a preferential 15% rate on qualifying income. (A budget proposal to raise the standard rate to 23.5% was announced for 2025/2026 — confirm enacted status.)

• Standard company tax rate — 22% % (2025/2026 budget proposed 23.5% — (approx — confirm)) (Income Tax Act (Cap. 52:01))
• Approved manufacturing rate — 15% (requires Minister of Finance approval) % (Income Tax Act (Cap. 52:01))
• IFSC company rate — 15% on income from approved financial operations with non-residents; 22% on other income % (Income Tax Act (Cap. 52:01))
• Mining (non-diamond) rate — Variable formula: 70 − (1,500 / x), where x = taxable income as a % of gross income; minimum 22% (Income Tax Act (Cap. 52:01))

Tax base

Companies are taxed on Botswana-source income net of allowable expenses; the regime is source-based.

• Tax base — Income from a source within or deemed within Botswana, less allowable deductions (Income Tax Act (Cap. 52:01))
• Additional Company Tax (ACT) — Historically a two-tier company tax (basic 15% + additional 7% = 22%); the additional tier interacts with dividend withholding tax credits ((approx — confirm current mechanics)) (Income Tax Act (Cap. 52:01))

Withholding tax rates

Botswana applies withholding tax on a range of payments; rates differ for residents and non-residents and may be reduced by double-tax treaties (Botswana has ~24 DTAs).

• Dividends — 10% (residents and non-residents) % (Treaty rates may reduce non-resident dividends to 5–7.5%) (Income Tax Act (Cap. 52:01))
• Interest — 10% to residents; 15% to non-residents % (Treaty rates may reduce non-resident interest) (Income Tax Act (Cap. 52:01))
• Royalties (non-residents) — 15% % (Treaty rates may apply) (Income Tax Act (Cap. 52:01))
• Management / consultancy fees (non-residents) — 15% % (Treaty rates may apply) (Income Tax Act (Cap. 52:01))
• Rent — 5% % (Exemptions for individuals, amounts under BWP 48,000, and hotel/accommodation payments) (Income Tax Act (Cap. 52:01))
• Commission / brokerage — 10% % (Income Tax Act (Cap. 52:01))
• Construction contracts — 3% % (Income Tax Act (Cap. 52:01))

Filing and payment

Companies self-assess; returns are due within four months of year-end and self-assessment tax (SAT) is paid in quarterly instalments where the liability exceeds BWP 50,000.

• Return filing deadline — Within 4 months after the company's financial year-end (Income Tax Act (Cap. 52:01))
• SAT instalments — Quarterly instalments over 12 months where tax exceeds BWP 50,000; first instalment within 3 months of year start BWP (Income Tax Act (Cap. 52:01))
• SAT single payment — Where tax is BWP 50,000 or less, pay in full within 4 months of financial year-end BWP (Income Tax Act (Cap. 52:01))