Hoekom Botswana?

Why Botswana?

  • A stable democracy.
  • A country of law and order.
  • One of the world's fastest-growing economies since 1965:
  • No exchange controls.
  • Special classes of Companies exist with company tax of only 15% per annum.
  • Member of the Southern African Customs Union (SACU).
  • Member of the Southern African Development Community (SADC).
  • A country with a well-developed justice system based on the common law, which facilitates trade and business.
  • Sophisticated banking sector which the Trust may utilise in a U$D, Pound or Euro account.
  • Close proximity to SA, affords you hands-on and effective management of your trust.

 

 Taxation on the Botswana International Trust:

  • Botswana has a source-based tax system. This differs from that in SA. In fact, the system is mixed, in that non-Citizens of Botswana are taxed only on the Botswana - source income, whilst Botswana Companies and Citizens are taxed on worldwide income.
  • The Beneficiaries of the Botswana Trust, as non-Citizens, do not pay any tax in Botswana, because they are out of the tax net. Any offshore (non- Botswana) investment income will be tax free in the hands of the trustees, because the beneficiaries are non-Citizens.
  • Should the trust have Botswana Rental Income, this will be taxed in the hands of the trust at 25%. There is no withholding tax because the trust is not a company.
  • Dividends received from Botswana are tax free after withholding tax of 7,5% has been paid in Botswana, by the declaring company.
  • Interest earned in a financial institution is subject to a 10% withholding tax, which is a final tax. Thus, Botswana interest received is effectively tax free.

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