• The Switzerland of Africa
• Lowest tax rate in Africa
• No exchange controls
• Stable Political environment
• Low crime rate
• Roman Dutch Common Law
• Solid adherence to the ‘rule of law’
• Predominantly English speaking
• Central in the region
• Good infrastructure
• Major International Banks
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• Sole Proprietorships
• Partnerships
• Private Companies
• I.F.S.C. Companies
• Innovation Hub Companies
• Public Companies
• Trusts
• Business Trusts
• Partnerships and Trusts are subject to the same common law rules that the average South
African would be used to
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• For Companies that will do business in the region
• No withholding taxes on dividends
• No withholding taxes on interest earned
• No withholding taxes on commercial royalties
• 15% flat rate company tax
• Work permits easily obtained
• Unilateral tax relief upon withholding or income taxes levied
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• Generous telecommunications subsidies
• Training subsidies
• Low tax rate of 15%
• Work permit exemptions
• For mining innovation
• Agricultural innovation
• Business support innovation
• Scientific
• Possible Government assistance with research
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• 100% foreign shareholding allowed
• One Resident Director is required
• No special rules regarding capitalisation
• Tax Consequences for mining concerns which may be undercapitalised
• For SA Taxpayers, dividends may be tax free
• Companies may be trust owned
• The Botswana International Trust
Regime is World Class
• Manufacture – 15% tax
• Local Company 22% tax
• Beware - Withholding tax
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Individual – sliding scale top rate 25%
Company- Manufacturing 15%
Company- Innovation Hub
Company –IFSC
15%
15%
Company
Trust- Beneficiary Rate- Max
Withholding tax on Dividends
Dividends
CGT at Death
22%
25%/0%
7,5%
0%
0%
CGT – Land and Fixed Property
Indexed Base Cost
CGT – Companies
Death Duty
(Capital Transfer or Donation)
25% abatement
5%
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• Botswana is a safe haven
• Violent Crime statistics are low in Botswana
• Residents have security of tenure
• Rule of law
• The Botswana International Trust regime
• Provides the ideal vehicle to safeguard assets
• Admin done in Botswana, financial assets offshore
• High level of anonymity can be attained
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• 10% of the total population
• International Airport
• One of the fastest growing cities
• Home to SADC
• Close to SA border
• 380 Km from Johannesburg
• Diamond Hub
• Stock Exchange
• New High Court
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• Diamonds are the mainstay of the Botswana economy and the Diamond Mining Sector
Accounts for 1/3 to ½ GDP
• Per capita income of almost $ 6000 per annum
• The dominant force is the De Beers Mining
Company and Debswana. (Provides price stability and actively supports Botswana development)
• Worlds largest Gem Diamond Mine is the
Jwaneng mine, about 140 Km South west of
Gaborone
• Diamond Hub in Gaborone
• Estimated 20 odd lifespan left in the Jwaneng mine
• Other minerals are to be found and can be exploited in future
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• Accounts for over 20 000 jobs
• Has not yet reached full potential
• Botswana has some of the largest game parks in Africa
• Much of the land surface is still pristine
• Revenues over $ 300 Million
• Second Largest Industry
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• Serious Government Support for Farmers
• Farm equipment VAT exempt
• Resident Cattle Farmers, up to 300 head herd – tax free income
• Resident dry land farmers, up to 100 ha dry lands, tax free income
• A portion of the farming losses of an individual can be utilized to offset taxes
• Botswana has various trade agreements with the EU
• Southern and South Western Botswana is Beef
Country with Ghanzi noted as one of the best beef areas
• In the North, intensive agriculture is practiced, with spill points etc
• Growth area in the economy
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• Roman Dutch Law is the common Law
• By virtue of Section 2 of the Botswana Independence
Act 1966
• High Courts at Lobatse, Francistown and soon in
Gaborone
• Appeal Court in Lobatse
• Close connection to the South African legal fraternity
Many of the Appeal Court Judges are Senior SA Counsel
• Companies Act, Insolvency Act very similar to that of
South Africa
• The VAT Act contains principles that are almost identical to that of South Africa
• Likewise the Income Tax Act is similar
• South African authorities are extensively used by
Counsel and High Court Judges
• Death penalty is extant
• The Constitution is less voluminous than that of SA, but private ownership is guaranteed
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• Soon to be connected to the Fibre
Optic undersea cable for speed of internet access
• Well developed landline and cellular telephone systems
• Reliable Courier and Postal Services
• Inexpensive Rail services for transport of goods
• Air links to various African Countries, daily flights to South Africa
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• No Exchange Controls - the trust investment is made anywhere in the world
• Non Residents are able to be listed as trustees of their Botswana International Trust
• At present trusts are regulated under the
Common Law
• Total Anonymity of beneficiaries
• Full protection of assets
• Very low or no tax for non Citizen Beneficiaries in Botswana
• The trust may be utilized in International tax and estate planning
• Gaborone is close. Meetings can be held ‘in country’
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• Exchange Controls were abolished in
Botswana in 1999
• Any person who banks in Botswana can move funds and receive funds from anywhere in the world
• Resident Companies, Trusts and Individuals can hold offshore assets in any amount in any currency in any jurisdiction that they please
• The only limitations are those of the financial institutions
• It is easy for a Botswana Head Office to route money to any project and to receive money in Botswana
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• ABSA Life
• Bank ABC
• Bank Gaborone
• Barclays Bank
• Capital Bank
• FNB
• Stanbic Bank
• Standard Chartered Bank
• Wesbank
• Botswana is the ideal jurisdiction in the region for administration of individual or corporate financial affairs
• Because of the proximity of Gaborone to
Johannesburg, decisions can be made in
Botswana. This is highly tax efficient
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• 70 Staff Members
• Professional Staff include two South African lawyers, with rights of appearance
• Value Added Services includes international estate and tax planning and wealth services
• One of the largest Trust Services outlets in
Botswana
• Full compliment of commercial services
• Gaborone 3902779 (Tel)
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