Botswana
1995: Income Tax Act; regulates the taxation of contributions, investment income, and benefits. 1987: Pension and Provident Funds Act; regulates the establishment, registration, and operation of pension and provident funds
Corporate tax incentives reduce investment costs for businesses, which may affect investment and location decisions. They apply through different designs and interact with countries’ standard tax systems, often making it difficult for tax policy makers and researchers to compare their generosity and assess their impacts across countries. This paper develops a methodology to calculate forward-looking corporate effective tax rates (ETRs) summarising tax relief from investment tax incentives into comparable indicators. It presents ETR indicators for seven Sub-Saharan African countries. Empirical results show that tax incentives substantially lower corporate taxation across these countries. On average, tax incentives reduce ETRs by 30% in the food and automotive industries compared to the standard tax treatment. ETRs often differ among taxpayers in a same sector and country - by up to 55%. The most generous tax treatment is typically offered within Special Economic Zones, where tax incentives can reduce ETRs to near zero.
Botswana can legally issue the following three types of rulings within the scope of the transparency framework: (i) preferential regimes; International financial services company. (ii) cross-border unilateral APAs and any other cross-border unilateral tax rulings (such as an advance tax ruling) covering transfer pricing or the application of transfer pricing principles, and (iii) permanent establishment rulings.
Botswana has not yet introduced a requirement for the filing of CbC reports, as required under the BEPS Action 13 (CbC reporting) minimum standard.
Botswana can legally issue the following three types of rulings within the scope of the transparency framework: (i) preferential regimes; International financial services company. (ii) cross-border unilateral APAs and any other cross-border unilateral tax rulings (such as an advance tax ruling) covering transfer pricing or the application of transfer pricing principles; and (iii) permanent establishment rulings.
Botswana has not yet introduced a requirement for the filing of CbC reports, as required under the BEPS Action 13 (CbC reporting) minimum standard.
Botswana can legally issue the following three types of rulings within the scope of the transparency framework: (i) preferential regimes; With respect to the following preferential regime: International financial services company. (ii) cross-border unilateral APAs and any other cross-border unilateral tax rulings (such as an advance tax ruling) covering transfer pricing or the application of transfer pricing principles; and (iii) permanent establishment rulings.
Botswana does not yet have legislation in place to implement the BEPS Action 13 minimum standard.
Botswana can legally issue the following three types of rulings within the scope of the transparency framework: (i) preferential regimes; With respect to the following preferential regime: International financial services company. (ii) cross-border unilateral APAs and any other cross-border unilateral tax rulings (such as an advance tax ruling) covering transfer pricing or the application of transfer pricing principles; and (iii) permanent establishment rulings.
Botswana was first reviewed during the 2018/2019 peer review. This report is supplementary to that previous report (OECD, 2018[2]).