Botswana Tax Profile of the World’s Largest Diamond Producer

Botswana, a land‑locked country in southern Africa, has its capital in Gaborone and a population of about 2.5 million people in 2024. Rich in diamonds, the nation is one of the world’s largest diamond producers and relies heavily on mining and tourism for economic growth.

Corporate income tax is source‑based, with a standard rate of 22 % for resident companies and 30 % for non‑residents; approved manufacturers and international financial services centre (IFSC) companies benefit from a reduced 15 % rate. Personal income tax is progressive, ranging from 0 % to 25 % for residents and four brackets for non‑residents, while dividends and interest are taxed at 10 % or 15 % depending on residency. A value‑added tax of 14 % applies to most goods and services, with exemptions for education, accommodation and passenger transport, and transfer‑pricing and thin‑capitalisation rules have been in force since 1 July 2019.

The competitive rates and specific incentives aim to attract manufacturing and financial‑service investments, making it essential for businesses to determine their tax residency and apply the correct withholding rates on dividends, interest and royalties. Botswana’s network of over 20 double‑tax avoidance agreements provides additional certainty for international taxpayers. Understanding these rules helps companies optimise their tax burden and comply with filing obligations.