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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.

 

 

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