Botswana: Offshore Legal and Tax Regimes
International Financial Services Centre
The benefits which Botswana seeks from the development of an active International Financial Services Centre are:
- The creation of sustainable employment opportunities for suitably qualified citizens.
- The enhancement of the skills base of the Botswana workforce.
- The diversification of the revenue base of the country.
- The fostering of the introduction and increased use of modern financial services technology.
- The enhancement of Botswana's already excellent reputation in the international financial community.
Through the International Financial Services Centre, Botswana is seeking to concentrate on the following core activities:
- banking and financing operations transacted in foreign currency;
- the broking and trading of securities denominated in foreign currency;
- nvestment advice;
- management and custodial functions in relation to collective investment schemes;
- insurance and related activities (captive insurance and administration thereof);
- registrar and transfer agency services;
- exploitation of intellectual property;
- development and supply of computer software for use in the services described above;
- cross border leasing;
- capital raising.
The legislation establishes an IFSC Certification Committee which makes recommendations to the Minister of Finance and Development Planning for the issuance of a tax certificate valid until 2020.
In considering an application for a certificate, the Committee will have regard to:
- the number of Botswana citizens who will be employed in relation to the approved operation and the capacities in which they will be employed;
- facilities proposed for the training and imparting of skills to citizens;
- provisions made for the eventual replacement of non-resident employees by Botswana citizens;
- provision made for the participation by Botswana citizens in the management of the business.