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Botswana Stock Exchange amended listing thresholds

The government has recently introduced a Bill to amend the Income Tax Act (Cap 52:01) in a bid to further reduce harmful tax practices as required by Base Erosion and Profit Shifting (BEPS) framework. The effective date of the bill is not known at this stage.

Grant Thornton has put together its annual summary of the key highlights of the national budget delivered by the Minister of Finance and Development Planning, Honourable Kenneth Matambo. This year the focus of the budget is on “Enhancing welfare through economic transformation”. View our 4 page summary to get a quick preview of the 2019/20 budget.

Botswana’s Banking, Financial Services and Insurance (BFSI) industry at inflection point

Please note that the Trust Property Control Act, No. 11 of 2018 designed to regulate the control of Trusts and to provide for matters related thereto, commenced on 29 June 2018. The Master's Office based at the Francistown and Gaborone Division of the High Court is tasked with the responsibility of administering the Trust Property Control Act, No. 11 of 2018 and the registration of the Trust Instruments.

Companies and Intellectual Property Authority (CIPA) has relocated from its old offices in Kgale mews to a new location in CBD - Plot 54358 Prime Plaza building (former CEDA building).

Multinational company (MNC) groups typically tend to operate in several jurisdictions with a view to make their products and services available to their customers based in several locations. Often, the overall act of delivering its products or services to its end customers is spread across a number of legal entities located in different countries to ensure delivery of products or services to customers in the most efficient manner. MNC groups use the differential tax rates available in different countries to structure the inter-company pricing within their supply chains to optimize their tax costs.

Multinational company (MNC) groups typically tend to operate in several jurisdictions with a view to make their products and services available to their customers based in several locations. Often, the overall act of delivering its products or services to its end customers is spread across a number of legal entities located in different countries to ensure delivery of products or services to customers in the most efficient manner. MNC groups use the differential tax rates available in different countries to structure the inter-company pricing within their supply chains to optimize their tax costs.

BURS has requested all tax payers to register for e-services and access their tax information online. BURS no longer accepts requests to print tax assessments, tax compliance report, and tax and VAT statements over the counter. Therefore, all tax payers are advised to register for BURS e-services and activate their online tax account with BURS.

Income Tax (Spedu Regional Development Approval) Order has been gazetted and the effective date has not yet been announced. The new Order provides income tax concession for income earned by a company which has an approved business in the Spedu region, which comprises of Selebi-Phikwe, Bobonong, Mmadinare, Sefophe, Lerale, Maunatlala, and neighboring villages, farms and cattle posts.

Botswana Budget 2018/19 gives vision into the implementation of transfer pricing laws in Botswana. Accordingly, Grant Thornton presents its insight on the matter in a series of alerts about transfer pricing, supported by local knowledge and experience of Rajesh Narasimhan, Taxation Partner.

The laws surrounding transfer pricing are becoming ever more complex, as tax affairs of multinational companies are facing scrutiny from media, regulators and the public. Accordingly, Grant Thornton presents its insight on the matter in a series of alerts about transfer pricing, supported by local knowledge and experience of Rajesh Narasimhan, Taxation Partner.

The new IFRS 16: Leases standard has been issued by the IASB. The core principle of the new standard is that lessees should recognise all leases on their balance sheet.

As per the latest available report, this BWP 6.4 billion industry currently contributes over 7.1% of the country’s GDP, in real terms as compared to 4% in 2006. Over the last decade, this industry has grown at an impressive Compounded Annual Growth Rate (CAGR) of 15%, outperforming the economy in all years, except 2013.

The economy finished 2017 on a strong note, with YoY GDP growth accelerating to 6.5% in Q4 from 1.1% in Q3 thanks to a sharp rebound in the Trade, hotels and restaurants sector, driven by inclusion of diamond aggregation process under this sector.

Companies Act Cap 42:01 requirements