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Executive Summary
The Republic of Botswana is a landlocked country located in the Southern part of Africa, bordered by Zambia, Zimbabwe, Namibia and South Africa. The country covers a total area of 600,370 sq km. Gaborone is the capital of Botswana; English and Tswana are its official languages.

Botswana is a representative democratic republic. The President is the head of the state and the head of the government, to which executive power belongs. Legislative rights are in the hands of the parliament and the government. Botswana is the least corrupted country in Africa.

When the country became independent in 1966, it was one of the poorest countries of Africa, but since then it has been experiencing a consistent and constant economic growth, and it now enjoys a stable political system. It has important economic ties with South Africa. Botswana has a well developed services sector, manufacturing, tourism and diamond industry. Uranium has been discovered on the country’s territory. Botswana experiences a rapid growth of income per capita and a high level of economic freedom.

The Pula (BWP) is the official currency of Botswana.


Geography
The territory of Botswana is flat, almost three thirds of which are covered by the Kalahari Desert. The Okavango Delta is the biggest inland delta not only of Africa, but of the whole world; the Limpopo River basin lies partly in Botswana. It has a big number of savannas. Botswana’s wildlife is rich with different animal species.

Botswana has a semi-arid climate. October to April is the hottest and the wettest period of the year, May to September is the coolest and driest season, averaging at +25 degrees C. During this period, it is comparatively easy for tourists to see wildlife animals in their natural environments.

Map, Flag and Coat of Arm


Types of Company


In 2007 significant modernization and improvement of the companies’ incorporation and management practice has been introduced, which makes it easier to incorporate a company and imposes stricter rules of corporate governance. The types of company available for incorporation in Botswana are provided below. The choice of the most appropriate type of company should be determined, based upon each particular business idea.

Close Company
Private Company
Exempt Private Company
Non-Exempt Private Company
Public Company

Taxation
A tax year in Botswana starts on 1st July and ends on 30th June.

Personal
Residents and non-residents of Botswana are liable to pay tax on income generated within the territory of the country.

Income tax has a scalable nature, depending on the total amount of the annual income, and is charged at varying rates from 0% to 25%. Income derived from capital proceeds is taxed at different rates. Capital Transfer tax is levied at a rate of 12.5%.


Corporate
Corporation tax is payable on taxable income derived from activities conducted on the territory of Botswana. Companies pay corporation tax at a rate of 15%, to which 10% of company tax is added. Moreover, companies are liable to deduct 15% of withholding tax on the dividends they distribute. Withholding tax may be levied at different rates in each particular situation. Capital gains are taxed at varying rates or are exempted from taxation, depending on specific circumstances.
Customs duty is payable, the standard VAT rate is 10%.
 
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